Property taxes are often one of the largest expenses for property owners. If you own property in Texas, it is important to understand the basics of how property taxes are calculated and the ways you can reduce them.  We interviewed the property tax experts at Gill, Denson & Company to provide some insight into this topic.

 

How Are Your Property Taxes Calculated?

Local appraisal districts typically assess properties annually based on their value as of Jan 1.  Appraisal districts typically release the assessment values in April or May.  If your value increases more than a set threshold for the year, they will mail you a notice.  Otherwise, you will not receive a notice and will need to check your value on their website.

Your property tax bill is then calculated by multiplying this appraised value by the tax rate for all applicable taxing entities for your property (common taxing entities include schools, cities, counties, community colleges and utility districts). Your tax bill is due Jan 31 of the following year.

How Accurate Are Tax Appraisals?

 

Given understaffed appraisal districts are trying to appraise tens of thousands of properties each year, they are forced to rely on mass appraisal methods which often use outdated or inaccurate information. The appraisal district has likely never actually seen your property and is estimating your property’s value based on a few data points in their system.  Due to this method of mass appraisal, many property owners are overtaxed and are paying more than their fair share of the property tax burden.

How Can I Reduce My Property Taxes?

 

Every property owner in Texas has the right to protest their tax appraisal.  During this process, the property owner is given the opportunity to provide evidence that their property should be valued for less.  There are multiple levels of protest, including the informal hearing, the ARB hearing and judicial appeal.  It is important the property owner presents compelling evidence in a format that acceptable to the appraisal district to have the greatest chance of receiving a reduction.  Many property owners that attempt to do this on their own find themselves confused with the process and unable to find strong enough evidence to convince the appraisal district of a reduction.

 

Given the complex nature of property tax protesting, we recommend hiring Gill, Denson & Company, a firm that specializes in this service.  They have a highly experienced and successful team that helped 8 out of 10 of their clients receive a tax appraisal reduction in 2023.  Their average reduction was 8.9%, which resulted in significant savings to property owners.  We have an exclusive partnership with them that allows our clients to get a special discounted rate to use their services.  When you use the discount code KEYRENTER, you will only pay them 25% of the taxes you save.  If they don’t save you anything, you don’t pay them anything!