Feb

25

2025

How to Protest Your Property Taxes and Keep Money in Your Pocket (The 2025 Edition)

Feb. 25. 2025

Every year, I make it my mission as a real estate broker and investor to help homeowners protest their property taxes. Whether you recently received your 2025 tax assessment in the mail or checked it online, it never hurts to protest—even if you’re happy with your value. Here’s your step-by-step guide to doing it right.

Step 1: Look Up Your Property’s Assessed Value

  • Go to your county appraisal district website and search for your property (this is public info unless you’ve opted for privacy protection).
  • Check your 2025 assessed value—did it go up or down from last year?
  • Note: This is public information unless you work for the government

Step 2: Check Your Mortgage & Escrow

  • Log into your mortgage account and review how much you’re escrowing for taxes and insurance.
  • If your taxes increase, your lender may not be collecting enough—causing a shortage next year and a higher monthly payments for the current year.
  • Travis Co is not the most transparent in what the tax rate is for your home–Find that out by going HERE and add up each entity for your tax rate.
  • Note: Not everyone escrows their taxes, typically if you have 20% equity or more in your home you can stop escrowing as the lender will no longer require it.
  • Note: If you do not have a mortgage on your home–Congrats! I am jealous.

Step 3: Gather Evidence to Support Your Protest

  • If you believe your home is overvalued, we can help! Fill out this form and we’ll send you comparable sales to strengthen your case.
  • Even if you’re happy with your property taxes, protesting can still lower them—so it’s always worth trying! (all about saving money, right?!)

Step 4: File Your Protest!

  • Many appraisal district websites (including Travis County) allow you to submit a protest online.
  • Once you have your evidence, submit your protest and be prepared to negotiate.
  • Note-You will most likely be forced to make an account

 

Step 5: Accept or Appeal Your New Appraisal

  • If you’re in Travis County, the county typically responds quickly with a new assessed value. You have the option to:
    –> Accept the new value—this will be your finalized 2025 assessment.
    –> Reject the new value and request a formal hearing (which can be done via Zoom).
  • While I personally haven’t done the formal hearing process, I’ve had clients successfully lower their taxes this way using comps I provided and they said it was painless and pretty easy.
  • Pro tip: Even if you accept the new value, you can still hire a third-party service to try and lower it even further (this is what I typically do to save time).

Important 2025 Tax Market Update

If you’re in the Austin market, your 2025 assessed value should be LOWER than your 2024 value due to a slight dip in the market and declining home prices. This is another reason why protesting is key—make sure your assessment reflects current market trends!

Frequently Asked Questions About Protesting Property Taxes:

Again, this is from my own personal experience as a homeowner of several Austin properties (some of my homes I escrow, some I do not) but I will always protest!

Is it too late to protest last year’s taxes?

Yes. The deadline to protest is usually late April or mid-May of the year of assessment. Double check with the county.

Why did my mortgage payment increase significantly?

If your escrow was short last year, your lender will overcorrect this year by collecting extra to avoid future shortages. This is why it’s critical to check your escrow amounts match your new tax assessment.

Example: This happened to me when my homestead exemption was removed after converting my home into a rental. Property taxes increased, my escrow came up short, so the following year my lender over-collected—then my payment eventually leveled out again.

What does the homestead exemption do, exactly?

In Texas a homestead exemption (meaning an exemption placed on your primary residence) prevents your property taxes from increasing over 10% year over year. 

?? Example: During the covid years property values skyrocketed, and perhaps your home value was quite low. If you did improvements and by the end of 2022 many people’s values double but the homestead exemption helps keep the amount taxed on reduced.

Why did I get money back from my lender?

If you received money from your lender, that was from an overpayment in your escrow account. Perhaps you paid a little extra each month or perhaps your tax assessment decreased and your lender was still collecting on the older, higher amount.

How do I calculate my monthly tax payment?

Travis County’s website isn’t as transparent as other counties, but you can estimate your monthly tax escrow using this formula:

–>Tax Rate (%) × Assessed Value ÷ 12 = Monthly Tax Payment

Example: If your tax rate is 2.5356% and your assessed value is $500,000, you would calculate:
$500,000 × 2.5356% = $12,678/year
$12,678 ÷ 12 = $1,056/month into escrow

**A reminder-some areas in Austin are higher, some are lower. Williamson County spells it out on their site so you do not have to go to the county tax website (like Travis County homeowners do).

When are property taxes due?

Your tax bill is typically mailed in December and is due by January 31st of the following year.

Does this mean this is what my house will sell for?

A reminder that market appraised value and county assessed values are TWO VERY SEPARATE items. Sometimes property values are higher than what the homebuyer paid in the same year, sometimes they are higher but I always encourage my homeowners who are selling to start the protest process and try. Home buyers love buying a home when the property taxes are a bit lower (lowering their payment). But again-county assessed value is NOT market value.

What if I can’t find lower-priced home sales to use in my protest?

If comparable sales don’t support a lower value, consider other factors to argue your case, such as:

  • Older roof, plumbing, or foundation issues
  • Outdated home features compared to remodeled homes nearby
  • Recent neighborhood sales of similar homes at lower prices

Need Help? Let the Experts Handle It

If you don’t have time to protest yourself, these professionals can do it for you:
Five Stone Tax Advisors (I personally use them for all my properties!)
Texas Pro Tax
Ownwell

While there are multiple ways to utilize real estate for tax deductions (ask me about my cost segregation report that saved thousands for me last year) protesting your taxes is an easy way for you to save money and manage how much you are paying each month.

Protesting your property taxes could save you hundreds or even thousands of dollars per year. If you have questions, feel free to reach out—I’m happy to help!