How Property Tax Assessments Work (And Why They're Often Wrong)
Every year your county assigns a value to your home that determines your property taxes. But how do they calculate that number—and why is it so often wrong? This guide explains mass appraisal, the three approaches to value, and common assessment errors.
Key Takeaways:
The Mass Appraisal Process
- District collects property data
- Analyzes recent sales
- Computer models apply formulas
- Values generated for all properties
This process is efficient—but not precise.
Three Approaches to Value
1. Market Approach: What similar properties sold for. Primary method for residential.
2. Cost Approach: Rebuild cost minus depreciation. For unique properties.
3. Income Approach: What property generates. For rentals/commercial.
Why Assessments Go Wrong
- Outdated data: Wrong square footage, features
- Poor comps: Wrong neighborhoods or types
- Ignored condition: Mass appraisal can't see your dated kitchen
- Blanket increases: Uniform percentages ignore differences
- Market lag: Values reflect January 1
Assessment Calendar
Texas: Jan 1 valuation → April notices → May 15 deadline
California: Jan 1 valuation → July values → Sept 15/Dec 1 deadline
How to Verify
- Check property record accuracy
- Compare to recent sales
- If assessment exceeds comps, you have grounds to protest
Paying Too Much in Property Taxes?
Let our licensed property tax experts assess your tax bill for potential savings. Over 80% of protests get a reduction of more than $1,000 and it takes less than 3 minutes to enroll.
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FAQs
How often are assessments updated?
In Texas, properties are assessed annually. In California, values are based on purchase price with up to 2% annual increases.
Can my assessment go down without protesting?
Technically yes, but it rarely happens proactively. The burden is on you to identify overassessments.
Ryder Meehan
Ryder Meehan is the Co-Founder of TaxDrop and a Licensed Property Tax Protest Consultant
