Property Tax Arbitration in Texas: How It Works After a Protest
Texas arbitration after an ARB order: eligibility, the 60-day deadline, deposits, refunds and a practical evidence checklist.
Key Takeaways:
- File a regular arbitration request and deposit within 60 days after receipt of the ARB order.
- The later 45-day settlement period is a separate clock.
- Homesteads have no value ceiling; other eligible property is limited to $5 million.
- Deposits range from $450 to $1,550; a reduction alone does not guarantee a refund.
Reviewed and updated November 12, 2026.
In this guide
- Who qualifies for regular binding arbitration?
- How do the 60-day and 45-day periods differ?
- How much is the arbitration deposit?
- When is the deposit refunded?
- Is arbitration worth the cost?
- What evidence should you prepare?
- How is limited binding arbitration different?
- What other appeal routes exist?
- Start with a well-supported appraisal protest
- Sources
Texas regular binding arbitration lets an eligible property owner appeal an ARB value decision through the Comptroller. File the request and required deposit within 60 days after receiving the ARB order. This is a separate step after an appraisal protest; it does not challenge the tax rate.
Who qualifies for regular binding arbitration?
You need an ARB order deciding market or appraised value or unequal appraisal. A residence homestead has no value ceiling; other eligible property must have an ARB-determined value of $5 million or less. A lawsuit on the same matter and a binding settlement can prevent arbitration. Check the Comptroller’s current eligibility and filing instructions.
Protect your payment eligibility: prior-year taxes must be paid and the undisputed amount for the year being appealed must be paid before delinquency. Current qualifying deferrals have special treatment. Do not assume a pending appeal suspends payment.
How do the 60-day and 45-day periods differ?
| Stage | Clock | What to do |
|---|---|---|
| File the request | 60 days after receipt of the ARB order | Submit the request and deposit to the Comptroller. Keep evidence of receipt and submission. |
| Settlement | 45 days after Comptroller processing | Try to resolve the dispute before an arbitrator is assigned. This does not extend the filing deadline. |
Agents and owners represented by an agent must file and pay through the online Property Tax Arbitration System. Unrepresented owners can use the online system or the current AP-219 paper process. Follow the official filing portal; do not send an arbitration request to the appraisal district.
How much is the arbitration deposit?
Match your property type and ARB value to the official deposit schedule. This government deposit is separate from any consultant, appraisal or preparation fee.
| Property | ARB-determined value | Deposit |
|---|---|---|
| Residence homestead | $500,000 or less | $450 |
| Residence homestead | More than $500,000 | $500 |
| Other eligible property | $1 million or less | $500 |
| Other eligible property | Over $1 million through $2 million | $800 |
| Other eligible property | Over $2 million through $3 million | $1,050 |
| Other eligible property | Over $3 million through $5 million | $1,550 |
When is the deposit refunded?
A lower value alone does not guarantee a refund. Under Tax Code §41A.09, the award must be closer to your stated value than to the ARB value. If it is, the district pays the arbitrator and your deposit is returned minus the $50 administrative fee. Otherwise your deposit funds the arbitrator’s fee.
Withdrawing during the initial settlement period generally returns the deposit minus $50. Withdrawing after an arbitrator accepts the case can cost more. Dismissals have separate fee rules; check eligibility before paying.
Is arbitration worth the cost?
Compare a realistic taxable-value reduction with your actual combined rate. In a hypothetical case, a $40,000 reduction reaching taxable value at a 2% combined rate would reduce annual tax by $800. An appraisal cap, exemptions or tax ceiling can reduce or eliminate the immediate effect. Preparation and representation costs are additional, and an award is not guaranteed.
What evidence should you prepare?
Build a concise file around the January 1 valuation date: supported comparable sales, an unequal-appraisal analysis where applicable, condition photos, repair estimates and a clear requested value. Explain adjustments and address the district’s comparables. Reusing evidence is possible; arbitration does not require newly discovered evidence.
Open your arbitration readiness checklist
- Save the ARB order and record when it was received.
- Confirm an eligible value dispute, property value and payment status.
- Check whether a settlement or court filing affects eligibility.
- Calculate the correct deposit and use the required filing channel.
- Present a defensible value with organized exhibits and supporting adjustments.
- Retain submission confirmations and monitor hearing notices.
How is limited binding arbitration different?
Limited binding arbitration addresses specified failures to follow protest procedures. It does not decide market value. It has its own short notice and request windows; the 60-day regular-arbitration deadline is not a substitute. Follow the Comptroller’s LBA instructions immediately if you believe a procedural violation occurred.
What other appeal routes exist?
District court and the State Office of Administrative Hearings are separate routes with different eligibility and deadlines. Court appeals generally have a 60-day filing period after receipt of the order; SOAH generally requires notice within 30 days and a separate deposit within 90 days. Review the official appeal options before choosing. Arbitration is binding, with only narrow grounds to challenge an award.
Start with a well-supported appraisal protest
For the next appraisal year, keep evidence and filing deadlines together. Read our Texas protest guide or compare TaxDrop service options. Confirm any provider’s scope: help with the original protest does not automatically include post-ARB arbitration.
Sources
- Texas Comptroller: regular binding arbitration
- Official deposit and arbitrator fee schedule
- Texas Tax Code Chapter 41A
- Limited binding arbitration
Related guides
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FAQs
How long do I have to request Texas property tax arbitration?
For regular binding arbitration, file the request and required deposit within 60 days after receiving the ARB order. The separate 45-day settlement period begins after Comptroller processing.
Can rental property qualify for arbitration?
Yes. Non-homestead property can qualify if its ARB-determined value is $5 million or less and the other eligibility conditions are met. Residence homesteads have no value ceiling.
How much is the Texas arbitration deposit?
The regular binding arbitration deposit ranges from $450 to $1,550. A residence homestead requires $450 at a value of $500,000 or less and $500 above that value. Other property uses separate tiers.
Do I get my deposit back if my value is reduced?
Not automatically. The award must be closer to your stated value than to the ARB value for the outcome-based refund, minus the $50 administrative fee. Withdrawal and dismissal rules differ.
Do I need a lawyer for arbitration?
You may represent yourself. Eligible representatives can assist at your cost. Confirm the representative’s authority and whether the agreement includes post-ARB arbitration.
Does an appraisal appeal let me delay tax payment?
Do not assume it does. Payment requirements preserve appeal rights, including timely payment of the undisputed amount for the year at issue. Review the current rules and any qualifying deferral.
Ryder Meehan
Ryder Meehan is the Co-Founder of TaxDrop and a Licensed Property Tax Protest Consultant
