A value reduction is the decrease in your property's assessed value achieved through a successful protest, settlement, or ARB decision. It's the primary goal of the property tax protest process—lowering the value that determines your tax bill.
Value reductions can range from modest ($5,000-10,000) to substantial ($50,000+), depending on how much your property was overassessed. The tax savings from a value reduction continue each year because your new, lower value becomes the baseline for future assessments.
In Texas, your reduced value also affects your homestead cap calculation, providing compounding benefits in future years.
Value reductions are why protesting your property taxes is worth the effort. Even modest reductions add up significantly over time.
Factors affecting reduction size:
• How much you were overassessed
• Quality of your evidence
• Willingness to push through hearings
• Market conditions
• Skill of your representative
Average results:
• Most successful protests achieve 5-15% reductions
• Some achieve 20%+ with strong evidence
• Even small reductions compound over years
No reduction scenarios:
• Your value was already at or below market
• Evidence didn't support lower value
• Market rose since your last assessment
How value reductions translate to savings:
Example reduction:
• Original assessed value: $450,000
• Reduced value: $400,000
• Reduction amount: $50,000
Annual tax savings:
• Tax rate: 2.5%
• Savings: $50,000 × 2.5% = $1,250/year
Multi-year impact:
• Year 1: $1,250 savings
• Year 2: Continued savings + lower cap base
• Year 3+: Compounding protection
• Over 5 years: $6,250+ in savings
A single successful protest creates lasting benefits.
Results vary widely based on how overassessed you were initially. Average reductions typically range from 5-15% of assessed value, but some properties achieve 20%+ reductions with strong evidence. Even a 5% reduction on a $400,000 home saves $500+/year.
The reduced value becomes your new assessed value, which can increase in future years subject to market conditions and (in Texas) the 10% homestead cap. However, starting from a lower base provides lasting benefits. You may need to protest again if values rise significantly.
Generally no—the goal is to ensure your assessed value doesn't exceed market value. However, equity arguments (your value vs. similar properties' assessments) might achieve values below what your home would sell for if neighbors successfully protested and you use their values as comps.