Property Taxes Hit Record $4,427 — Even With Flat Home Values

Property taxes hit a record $4,427 nationally in 2025, rising 3.7% even as home values softened in many markets. ATTOM Data's latest analysis confirms what Texas homeowners have been experiencing firsthand: tax bills keep climbing regardless of actual market conditions.

This disconnect isn't a market problem — it's an assessment problem. And assessment problems are fixable through the property tax protest process.

The Assessment Gap: Why Taxes Rise When Values Don't

ATTOM's 2025 property tax analysis reveals a critical timing mismatch between assessments and market reality. County appraisal districts typically assess properties based on data from 6-18 months prior to the tax year, creating natural gaps when markets shift quickly.

In Texas, this timing issue becomes particularly problematic because:

• Assessment dates vary by county: Most Texas counties assess as of January 1st for the current tax year
• Market data lags: Appraisers often rely on sales from the previous 12-24 months
• Automated models dominate: Mass appraisal systems struggle with rapid market changes

According to ATTOM's data, effective property tax rates averaged 1.08% nationally in 2025, but Texas counties often exceed 2-3% when combining all taxing entities.

"The gap between assessment values and current market conditions creates systematic over-taxation in softening markets. Homeowners pay taxes on outdated valuations that no longer reflect reality." — ATTOM Data Solutions, 2025 Property Tax Analysis

How Over-Assessment Happens in Practice

Consider a typical scenario in Harris County. Your home was assessed at $350,000 for 2025 taxes, based largely on 2023-2024 sales data when the market peaked. But comparable homes in your neighborhood now sell for $320,000-$330,000.

The math is straightforward:

• Current assessment: $350,000
• Market range: $320,000-$330,000
• Potential over-assessment: $20,000-$30,000
• Tax impact at 3% total rate: $600-$900 annually

Multiply this across thousands of properties, and you see why tax revenues continue growing even in flat markets.

Texas Property Tax Protest Windows

Texas law provides homeowners with specific deadlines to challenge assessments:

Key Deadlines for 2026

• May 31st: Standard protest filing deadline (or 30 days after notice, whichever is later)
• April 30th: Deadline in counties with populations over 120,000 if notices mailed by April 1st
• ARB hearings: Typically scheduled June through October

Major Texas counties and their 2026 protest windows:

• Harris County (HCAD): File by May 31st via hcad.org
• Dallas County (DCAD): File by May 31st via dallascad.org
• Travis County (TCAD): File by May 31st via traviscad.org
• Collin County (CCAD): File by May 31st via collincad.org

Building a Data-Backed Protest Packet

Successful protests rely on current market evidence, not opinions. Texas Property Tax Code Section 23.01 requires assessments to reflect "market value" — what a willing buyer would pay a willing seller.

Essential Evidence Types

Comparable Sales Analysis: Recent sales of similar properties within 0.5-1 mile, ideally from the past 6 months. Look for homes with similar square footage, lot size, age, and condition.

Market Trend Data: County-level sales volume and price trend information showing market softening. ATTOM's data, local MLS statistics, and county records provide this context.

Property-Specific Issues: Document any factors that reduce value — needed repairs, functional obsolescence, or negative location factors not reflected in the assessment.

Assessment Methodology Challenges: If the county's mass appraisal model appears flawed for your property type or neighborhood, comparable assessment data can highlight inconsistencies.

Organizing Your Evidence

Texas ARBs (Appraisal Review Boards) appreciate clear, organized presentations:

1. Executive summary: One-page overview of your market value conclusion
2. Property details: Photos, square footage, features, and condition notes
3. Comparable sales: Detailed analysis of 3-6 recent sales with adjustments
4. Market context: Neighborhood trends and broader market conditions
5. Supporting documentation: MLS printouts, photos, repair estimates if applicable

What the Data Tells Us About Success Rates

Texas Property Tax Code requires ARBs to consider all relevant evidence. While success rates vary by county and evidence quality, protests with current market data typically achieve better outcomes than those without supporting documentation.

ATTOM's analysis shows markets with the largest assessment-to-value gaps often have the highest protest success rates, as the evidence gap becomes more apparent to review boards.

Your Options for 2026 Protests

Texas homeowners have several paths forward:

• DIY approach: Use county websites and free resources to file and present your own case
• Property tax consultants: Typically work on contingency fees of 25-50% of tax savings
• Document preparation services: Companies like FairPath ($249 flat fee) prepare professional evidence packets while you handle the filing and hearing
• Property tax attorneys: For complex cases or legal challenges beyond simple over-assessment

Check Your Assessment Now

With ATTOM's data confirming the widespread nature of assessment gaps, Texas homeowners should review their 2026 assessments carefully. Notice values will arrive between April and early May in most counties.

Start by comparing your assessed value to recent sales in your immediate area. If the gap exceeds 10-15%, you may have grounds for a successful protest.

Bottom Line

Record-high property taxes in a softening market aren't inevitable — they're a symptom of lagging assessment systems. ATTOM's data provides the broader context, but your protest success depends on local market evidence and proper presentation to your county's ARB.

The 2026 protest window opens soon. Texas homeowners who act with data-backed evidence can challenge over-assessments and potentially reduce their tax burden, even when the broader market has shifted.

FairPath provides document preparation services — not legal advice. For questions about your specific legal situation, consult a licensed attorney or your county appraisal district.