Rental Property Tax Protest: How to Appeal Your Texas Assessment

A rental gets no homestead exemption, so the appraised value drives your whole bill. Here is how districts value rentals, what evidence helps and how the protest works.
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Key Property Tax Stats

Last updated: October 9, 2026

If you own a rental house, duplex or other small rental in Texas, you can protest the appraisal district's value to the ARB. The question is whether the district's market value matches what the property would sell for on January 1, not whether the tax bill feels high. This page explains how rentals are valued, what evidence helps and how the Texas process works. TaxDrop does not guarantee a result, and not every rental is over-assessed.

How districts value rental property

  • Market value as of January 1. With few exceptions, districts must appraise property at market value as of January 1 (Texas Comptroller).
  • Sales comparison is typically preferred for single-family homes when there is enough sales data. Comparable sales are adjusted for differences such as size, age and condition. See our glossary on comparable sales.
  • Income approach converts rent and expenses into value and is typically used for properties held to produce income, such as multi-unit rentals. Our income approach glossary entry covers the basics.
  • Cost approach starts from replacement cost less depreciation, including physical, functional and economic obsolescence (Tax Code §23.011).

A hypothetical example (made-up numbers, for illustration only)

These round numbers are invented to show the math. They are not data from any real property, county or TaxDrop client.

  • The district's market value for a rental house is $300,000. Three closed sales of similar homes, adjusted for size and condition, support about $270,000.
  • The difference is $30,000. At a combined tax rate of 2.0% (a placeholder, since rates vary by location), that is about $600 a year.

Whether a real property is over-assessed depends on its own comparable sales, condition and income evidence.

Biggest Pain Points

No homestead exemption to soften the bill

A residence homestead exemption requires that you live in the home as your principal residence (Texas Comptroller), so a rental does not get the school-district homestead exemption or the 10% homestead cap. For the 2026 tax year, a separate 20% "circuit breaker" can limit annual increases on non-homestead real property valued at $5,320,000 or less, but it expires December 31, 2026 (Texas Comptroller). Either way, the district's market value is the number to test.

Comparable sales that ignore condition

Appraisal districts typically value single-family homes with the sales comparison approach, which adjusts recent sales of similar properties for their differences (Texas Comptroller). The district must adjust comparable sales to your property and, with limited exceptions, use sales within 24 months of the valuation date, or 36 months for residential property in a county with more than 150,000 people (Tax Code §23.013). If your rental has worn finishes, deferred repairs or a dated layout, ask which adjustments the district actually made.

Income and expenses the model never saw

When the income method is the most appropriate way to value real property, the chief appraiser must analyze comparable rent data, operating expenses and capitalization rates, and base projections on "reasonably clear and appropriate evidence" (Tax Code §23.012). The Comptroller says the income approach suits properties bought and held to produce income (Texas Comptroller). Your leases, vacancy history and expense records show whether the district's assumptions fit your property.

How it Works

Evidence checklist for a rental property protest

Evidence works best when each document ties to a value input (Texas Comptroller; Tax Code §41.461):

  • Notice of appraised value and property record card to check square footage, bedrooms, age and condition against the district's record.
  • Leases and rent roll showing the rent tenants actually pay, plus concessions.
  • Vacancy and turnover history, including months vacant between tenants.
  • Operating expenses: taxes, insurance, repairs, management and utilities you pay.
  • Condition proof: dated photos, inspection reports, repair invoices or contractor bids for needed work.
  • Comparable sales of similar properties within the allowed window, with adjustments you can explain.
  • The district's own evidence: request its data, schedules and formulas, and check its comparables against yours.

If a tenant pays the property tax

A person leasing real property who is contractually obligated to reimburse the owner for property taxes can protest the appraised value if the owner does not, and an owner must send the tenant a copy of the notice within 10 days of receiving it, unless the lease waives that (Tax Code §41.413). Only one protest by either the owner or the tenant is allowed, so agree on who files.

The Texas protest process and deadline

  • Deadline: file a written notice of protest with the appraisal review board (ARB) by May 15 or the 30th day after the appraisal notice was delivered, whichever is later (Tax Code §41.44). The Comptroller says the 30 days run from the date the district mails the notice (Texas Comptroller), so to be safe use the earlier date and check the dates on your own notice. A late protest can still be heard if you show good cause before the ARB approves the appraisal records.
  • Filing: use Form 50-132, or any written notice that identifies you, the property and your disagreement. A district cannot charge a fee for a protest (Tax Code §41.41). An agent needs Form 50-162.
  • Informal conference: you can ask the district for an informal conference before the hearing (Tax Code §41.445).
  • Before the hearing: the ARB must give you at least 15 days' written notice (Tax Code §41.46). You can ask the chief appraiser for the data, schedules and formulas it will use, which it must deliver at least 14 days before the hearing (Tax Code §41.461). Material you requested but did not receive in time generally cannot be used against you (Tax Code §41.67).
  • Hearing: on a market value or unequal appraisal protest, the district has the burden of establishing value by a preponderance of the evidence (Tax Code §41.43). Bring your own evidence anyway. Hearings are informal, and you may offer an affidavit, or appear by phone or videoconference (Tax Code §41.45).
  • After the ARB: you can appeal to district court within 60 days of receiving the written order. Depending on the property, State Office of Administrative Hearings (SOAH) appeals or regular binding arbitration may also be available (Texas Comptroller).

Our deadlines-by-state guide and Texas protest overview have more. For other states, see California, Georgia, Florida, New Jersey and Maryland.

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