Unequal Appraisal in Texas: Protest Your Value Even When Prices Are Rising

In Texas you don’t have to prove your home would sell for less than its value. You can also win by showing that similar properties near you are appraised lower than yours. It’s called an unequal appraisal protest, and it often works even when market prices are rising. Here’s how it works.

The rule

Texas Tax Code §41.43(b) says an unequal appraisal protest is decided in the owner’s favor unless the appraisal district proves one of three things. The one used most is §41.43(b)(3): that your appraised value is equal to or less than “the median appraised value of a reasonable number of comparable properties appropriately adjusted.”

In plain English:

1. Pick a group of properties similar to yours.
2. Adjust their appraised values (not sale prices) for differences from your property: size, age, lot, condition, pool, garage.
3. Find the median (the middle value) of those adjusted values.
4. If your appraised value is higher than that median, the district has to lower it to the median, or prove you wrong.

The burden is on the district. And if your value was lowered last year, the district faces an even higher standard of proof this year, as long as you give it your evidence at least 14 days before your hearing (§41.43(a-3)).

Why it works when prices are rising

A market value protest asks: “Would this property sell for less than the district says?” In a rising market, the answer is often no.

An unequal appraisal protest asks a different question: “Is the district valuing my property more than it values my neighbors’?” Appraisal districts value hundreds of thousands of properties at once with formulas, and some end up valued higher than nearly identical neighbors. That gap exists in up markets and down markets alike.

How to build the case

1. Find comparable properties

Use your appraisal district’s property search. Look for properties that are:

• in your neighborhood or subdivision
• the same type (single-family, duplex, small retail)
• similar in size, often within about 15–20% of your square footage
• similar in age and quality

Aim for at least 5–10. A larger group makes the median harder to argue with.

2. Adjust each one

For each comparable, start with its appraised value and adjust it toward your property:

• Size: if a comp is smaller than yours, add value per square foot; if larger, subtract.
• Features: subtract for features it has that yours doesn’t (a pool, an extra bath), and add for ones yours has that it doesn’t.
• Condition and age: adjust for differences the district’s records show.

Use the district’s own numbers where you can. Many districts publish their adjustment rates in their mass appraisal report, and using their rates makes your grid hard to dismiss. Our guide to finding and adjusting comparables shows the method with an example.

3. Find the median

List the adjusted values from low to high and take the middle one. If your appraised value is above it, that’s your requested value.

4. File and present

When you file your protest, check both reasons: “value is over market value” and “value is unequal compared with other properties.” That keeps both arguments open. Bring your grid, a map of the comps, and the district’s own records for each.

At the hearing, keep it simple: “Here are 10 comparable properties from your records. Adjusted for differences, their median value is $X. My value is $Y. Under §41.43(b)(3), my value should be $X.”

Common mistakes

• Using sale prices instead of appraised values. Unequal appraisal compares what the district valued properties at, not what they sold for.
• Cherry-picking. A grid of only the lowest values gets thrown out. Use a fair, representative group.
• Ignoring big differences. A comp with a much newer house or bigger lot needs a real adjustment, or the panel won’t trust the grid.
• Missing the deadline. May 15, or 30 days after your notice was mailed, whichever is later. In 2027, May 15 is a Saturday, so the deadline moves to Monday, May 17.

If the review board says no

You have 60 days after the board’s order to request binding arbitration or appeal to district court. In court, Tax Code §42.26 gives you the same median-of-comparables test.

Let us run the numbers

Recoup Capital builds an adjusted comparable grid for every Texas property we take on, testing both market value and unequal appraisal, and files whichever argument is stronger. You pay 25% of what you save, and nothing if your value doesn’t go down. Start a free review.

Sources: Texas Tax Code §41.43, Texas Tax Code §42.26, Texas Comptroller: property tax protests. This guide is general information, not legal advice.