How Property Taxes Are Assessed and Appealed in Central Texas, Without the Headache
If you own a home in Central Texas, or you’re thinking about buying one, property taxes are not optional dinner conversation. They show up every year, they change more often than people expect, and they can feel confusing on purpose.
Most homeowners I talk to don’t mind paying their fair share. What they don’t want is paying more than they should.
So let’s break down how property taxes are actually assessed in Central Texas, and more importantly, how the appeal process works, without the legal jargon or the panic.
Who Decides Your Property Value
In Central Texas, your property value is set by your county appraisal district, not the tax office and not your city.
If you’re in Travis County, that’s the Travis Central Appraisal District. In Williamson County, it’s the Williamson Central Appraisal District. Other surrounding counties operate the same way.
Each year, the appraisal district estimates your home’s market value as of January 1. That value is what your property taxes are based on.
This is an estimate, not a guarantee that your home will sell for that amount.
How They Come Up With That Number
Appraisal districts use mass appraisal methods. That means they rely on sales data, neighborhood trends, square footage, and general property characteristics.
What they do not always account for are the things that matter most to homeowners:
Condition issues
Aging roofs or HVAC systems
Layout challenges
Updates you have not made
Unique features that don’t add value to buyers
Two homes on the same street can receive very similar values even if one is fully renovated and the other is not.
That’s where problems start.
Why Your Value Can Increase Even If You Did Nothing
Many homeowners are surprised to see their value go up even when they haven’t made improvements.
This usually happens because nearby homes sold for higher prices, new construction entered the area, or the market shifted. Appraisal districts look at patterns, not individual effort.
It’s not personal, it’s math, but that doesn’t mean it’s always accurate.
Understanding the Homestead Exemption
If this is your primary residence, filing a homestead exemption is one of the most important things you can do.
A homestead exemption:
Caps how much your assessed value can increase each year
Lowers the taxable value of your home
Provides additional protections for certain homeowners
This exemption can make a significant difference over time, especially in growing areas of Central Texas.
If you don’t have one and you qualify, you’re likely paying more than necessary.
When and Why You Should Appeal
If your assessed value feels high, you have the right to appeal it.
Appealing does not mean you’re doing something wrong. It’s part of the system, and appraisal districts expect it.
Common reasons to appeal include:
Your value increased significantly year over year
Comparable homes sold for less than your assessed value
Your home has condition issues that weren’t considered
Your value does not reflect market reality
You typically have a short window in the spring to file, so timing matters.
How the Appeal Process Works
First, you file a notice of protest. This can usually be done online and takes only a few minutes.
Next, you’ll either have an informal meeting or a formal hearing. In many cases, issues are resolved informally without ever going before a board.
What helps most during an appeal:
Recent comparable sales
Photos showing condition issues
Repair estimates if applicable
Clear, calm explanations
You don’t need to be aggressive. You need to be prepared.
Should You Hire Someone to Appeal for You
Some homeowners choose to hire property tax consultants who appeal on their behalf for a percentage of the savings.
This can be helpful if you don’t want to deal with the process. Just know that you can also appeal on your own at no cost, and many homeowners are successful doing so.
The right choice depends on your comfort level and how much time you want to invest.
How This Affects Buyers
If you’re buying a home, property taxes should be part of your decision-making process, not an afterthought.
New buyers are often surprised when taxes reset closer to market value after a purchase. This can significantly impact your monthly payment if you’re not prepared.
Understanding how taxes work before you buy helps you avoid unpleasant surprises later.
My Take as a Local Realtor
Property taxes are one of the least exciting parts of homeownership, but they matter.
I believe homeowners should understand how their value is determined and feel empowered to question it when it doesn’t add up. Being informed is not difficult; I’m always happy to talk it through. It’s being responsible.
If you’re buying, selling, or already own a home in Central Texas and want help understanding how property taxes fit into your bigger picture, I’m always happy to talk it through.
Clear information makes better decisions, and that’s what this is really about.