Protesting property taxes enables homeowners to argue that their taxes are overvalued or incorrectly assessed. While rules vary by state and county, the amount of money left on the table in Texas every year is reportedly staggering.
A recent Ownwell study found that in 2025, 32% of residential properties across 17 Texas counties protested their property taxes, while 68% did not. But what’s really eye-popping is that “those who skipped their 2025 protest left $1.2B in potential property tax savings on the table,” according to the study.
Over three years, the cumulative potential missed savings totaled $3.3 billion.
A separate Ownwell study found that 74% of homeowners worry about significant increases in their annual property tax bills, especially in states where they are the highest in the country, such as Colorado, New Jersey, California, and New York. At the same time, 8 in 10 have never appealed their property tax bill, with a whopping 53% being unaware they have the right to do so.
“Texas homeowners who skip protesting their property taxes aren’t just missing out on small savings; combined, they’re leaving billions on the table,” said Colton Pace, CEO and founder of Ownwell. “In Texas, protesting your property taxes isn’t optional, it’s part of managing your housing costs.”
What’s going on in Texas?
Everything’s bigger in Texas, and that can include property taxes. The reason is that the state uses a “mass appraisal” system, which can lead to inaccurate estimates and overvaluation.
This system opts for efficiency rather than accuracy, some experts argue.
“Assessors use mass appraisal techniques, relying on statistical models and recent sales data rather than individual inspections. Market fluctuations, renovations, and unique features can lead to inaccuracies,” according to Texas Tax Protest.
The lack of “boots on the ground” and nuance of individual property conditions can be detrimental to homeowners. Tax assessors use the “comparable sales” metric instead, relying on statistical models and recent sales data rather than individual inspections, according to Texas Tax Protest.
Pace explains that mass appraisal is efficient for county assessors, but often misses property-specific issues like condition, location quirks, or recent or needed repairs.
“That’s why overvaluation is so common; these systems aren’t designed to capture the nuances of every single home. Protesting is essentially how homeowners reintroduce those missing details,” he added.
By comparison, in states such as California, Proposition 13 mandates a property tax rate of 1%, “requires that properties be assessed at market value at the time of sale, and allows assessments to rise by no more than 2% per year until the next sale,” according to the National Bureau of Economic Research.
“Texas is unique because there’s no state income tax, so local governments rely heavily on property taxes, and that makes valuation accuracy even more important,” said Pace.
He added that Florida is more like Texas, where there’s no income tax, and state and local governments and services rely heavily on property taxes. In Texas, even with a 10% homestead cap, your starting point matters a lot more. If value is too high today and you don’t protest, that inflated number becomes the base for future increases, so you’re effectively locking in higher taxes year after year.”
Mark Gallegos, CPA and tax partner on Porte Brown’s tax services team, explains that in Texas, the protest process often serves as the primary check on valuation, whereas in California and Florida, statutory caps provide more built-in protection.
The compounding effect
The Onwell study tracked the success rates of protesting property taxes and savings by county.
For instance, in the three counties in the San Antonio area, only 23% of homeowners protested their property taxes, “leaving an estimated $154.5M in potential savings on the table.”
And those who protested saw a 7.1% reduction, with a 76% success rate, representing a whopping $61.8 million in overall tax savings.
Meanwhile, in Bastrop County, only 15% of properties protested in 2025.
“Of those who protested, 65% achieved a reduction averaging 8.9% off assessed value. Nonprotesting homeowners left an estimated $8.7M in potential savings on the table—roughly $194 per property,” according to Onwell.
Another advantage of a successful protest is that it doesn’t just save money this year—it lowers the “ceiling” for the 10% homestead appraisal cap in future years.
As Cody Schuiteboer, president and CEO of mortgage broker Best Interest Financial, explained, successful protests reset an individual’s baseline, so the 10% annual increase in appraisal caps does not apply, resulting in a compounding effect of savings throughout the decade.
“If a homeowner were to reduce their appraised value from $400,000 to $360,000, that homeowner would save about $48,000 over the course of a decade,” he said.
Pace echoed the sentiment: “Think of it like lowering the starting line. Every future increase is based on that lower number, so the impact builds over time. Lowering your assessed value today can save you for years, not just this tax cycle.”
Next steps for homeowners
In Texas, the protest deadline typically ends May 15, while in Florida, for example, homeowners must file petitions with the Value Adjustment Board within 25 days of the mailing of the Truth in Millage (TRIM) notice, which notifies homeowners of their taxes in August.
It’s important to note that there is a notable difference between informal processes and formal Appraisal Review Board (ARB) hearings.
Pace explained that most homeowners start with an informal hearing, where you present evidence directly to the County Appraisal District (CAD). If you can’t reach an agreed-upon assessed value, the next step is a formal hearing before the ARB, he said.
“The key is preparation—comparable sales, photos, and evidence of condition issues can make a meaningful difference in the outcome. The biggest mistake homeowners make is assuming their assessment is already accurate and fair,” he added.
Chris Gleason, founder and CEO of Simplicite Tax Loans, which provides property tax loans to Texas property owners, said the majority of its clients are residential customers who are among the 68% who did not protest.
According to him, the lack of protest is due to several reasons: a lack of understanding of taxes, fear that they might end up being taxed at a higher rate, and the process being time-consuming.
“We encourage our clients to protest every single year. It’s a ‘no-lose’ scenario under the right circumstances,” he said.
Gallegos agrees, saying that in any system built on mass valuation, taxpayer participation is part of the process.
“If you don’t engage, you’re effectively accepting a standardized estimate that may not reflect your property’s reality,” Gallegos said.
