Resolved Informally TexasSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Thousands | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Total Number | 679.558 | 780.244 | 916.866 | 1,062.614 | 1,079.302 | 1,169.973 | 1,260.644 | 1,293.294 | 1,457.313 | 1,721.636 | 1,721.920 | |
| Single Family | 393.941 | 452.136 | 537.666 | 639.630 | 646.351 | 690.118 | 733.885 | 763.804 | 891.615 | 1,065.332 | 1,043.424 | |
| Commercial / Other | 285.617 | 328.108 | 379.200 | 422.984 | 432.951 | 479.855 | 526.759 | 529.430 | 565.698 | 656.304 | 678.496 | |
Texas property owners should protest annually since Most appeals are resolved with a reduction at the informal level.
Texas Property Tax Protests Resolved Informally
The base form of property tax appeals, informal protests allow taxpayers of all types to take their case directly to their appraisal district (CAD). This is ideal for dealing with basic issues, such as incorrect attributes or ownership problems. These can even solve problems of overvaluation, if the taxpayer has enough evidence on their side. While still the most popular appeal type, formal hearings are quickly closing the gap. Still, an informal protest must be attempted before any other action can be taken.
Maximize your chance at any type of appeal, even a lawsuit, when you join O’Connor. As one of the largest property tax firms in the nation, O’Connor has the resources to take on any CAD and emerge victorious. Being based in Texas, O’Connor’s team of experts, appraisers, lawyers, and researchers all know the best way to prevail against Texas CADs and have a local insight that few companies can match.
Texas Informal Settlements
Homeowners often approach their local Texas appraisal districts with their informal appeal, settling for what the district offers. This entails waiving any more opportunities to explore their options for a bigger reduction. While this can certainly help a taxpayer, there are other avenues that they can pursue to get a bigger settlement. If the property owner is not satisfied with their informal offer, they can push for more formal procedures. This can include an appraisal review board hearing or even taking the case to a district court. The client will certainly need to have a professional at their back if they take this step.
1.72 million appeals were resolved informally in 2024, the second highest ever, only barely falling behind 2023. 1.04 million homes were resolved in this fashion. Residential properties tend to favor informal appeals simply due to their number and the simplicity of the protest. Businesses of all stripes often go for formal hearings or even lawsuits, though more are embracing the first stage of appeals. 678,496 commercial properties of all types were resolved at this initial level in 2024.
Resulted in Reduction Through Informal Process TexasSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Thousands | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Total Number | 434.015 | 540.911 | 646.688 | 752.464 | 852.114 | 887.197 | 922.280 | 885.247 | 1,075.794 | 1,268.123 | 1,280.828 | |
| Single Family | 284.319 | 349.468 | 437.783 | 526.097 | 485.941 | 565.756 | 645.571 | 615.370 | 750.571 | 897.858 | 908.343 | |
| Commercial / Other | 149.696 | 191.443 | 208.905 | 226.367 | 366.173 | 321.441 | 276.709 | 269.877 | 325.171 | 370.265 | 372.485 | |
Texas property owners should protest annually since It is the world’s safest wager. No cost and a 60% chance of savings annually.
Texas Informal Hearing Reductions
The success of informal appeals varies wildly on a county-by-county basis, but there has been a general upswing in recent years. In 2024, 1.28 million informal appeal victories were granted to property owners. This was the highest number of reductions ever achieved in this manner in the history of Texas. 908,343 reductions were achieved for single family homes, up from 897,858. Commercial properties scored 372,485 reductions in 2024, also setting a new record.
Percent That Resulted in A ReductionSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Percent | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Total Number | 63.870% | 69.330% | 70.530% | 70.810% | 78.950% | 75.830% | 73.160% | 68.450% | 73.820% | 73.660% | 74.380% | |
| Single Family | 72.170% | 77.290% | 81.420% | 82.250% | 75.180% | 81.980% | 87.970% | 80.570% | 84.180% | 84.280% | 87.050% | |
| Commercial / Other | 52.410% | 58.350% | 55.090% | 53.520% | 84.580% | 66.990% | 52.530% | 50.980% | 57.480% | 56.420% | 54.900% | |
Texas property owners should protest annually since Errors in the appraisal districts records for your property often artificially inflate YOUR property taxes.
Texas Percent of Informal Hearings with Reduction
Informal appeals in 2024 saw a big bump in efficiency, with 74.38% of them resulting in a reduction. This was the best rate seen since 2019, though 2024 had a ton more appeals in general. These types of protests vary the most by county, with each CAD being very protective or quite permissive. For example, Bexar County often sees taxpayers have a success rate of over 90%, while others, such as Travis, are much lower. This also depends on what the taxpayer is willing to accept.
As usual, single family homes were in the lead. Over 87% were able to receive a reduction, the best since 2020. This represents an excellent outcome for homeowners who dared to take on their CAD. Businesses were able to land a solid win rate of 73.48%, which was the highest Texas has seen since 2019. All across the board, these simple appeals paid major dividends.
$ Value Reduction From Informal ProcessSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Billions of $ | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| $ Reduction Total | 37.5205 | 41.6081 | 47.4446 | 47.4070 | 56.6721 | 62.8254 | 66.6555 | 73.2630 | 111.0666 | 146.8048 | 128.1527 | |
| $ Reduction Single Family | 7.0995 | 8.6646 | 11.8070 | 12.0441 | 13.7760 | 14.4872 | 18.0264 | 15.1649 | 23.3057 | 33.7411 | 35.5239 | |
| $ Value Commercial / Other | 30.4210 | 32.9435 | 35.6376 | 35.3628 | 42.8962 | 48.3382 | 48.6291 | 58.0982 | 87.7609 | 113.0637 | 92.6288 | |
Texas property owners should protest annually since Property taxes are the only type that can be negotiated based on subjective factors and judgment.
Texas Appraisal District Value Reduction from Informal Process
2024 was a banner year for all taxpayers in the Lone Star State. Riding the tide of recent success, a total of $128.15 billion in taxable value was cut via informal means. This was the second-most of all time, being beat out by the 2023 record of $146.81 billion. Single family homes managed to achieve their best year in history with $35.52 billion in cuts. Commercial values did not match their 2023 height but still nabbed $92.63 billion in reductions.