Unequal Appraisal vs. Market Value: Which Argument Wins?

When you file a property tax protest in Texas, the form asks why. Of all the boxes on it, two do most of the work for homeowners. One says your home's value is too high. The other says it's unequal compared with other properties. They sound like the same complaint. Legally, they're two different arguments, and they need different evidence.

What are the two main grounds for a Texas property tax protest?

Texas Tax Code §41.41 lists the things you're allowed to protest. The first is the appraised value itself, which is the market value argument: "my house isn't worth that much." The second is unequal appraisal: "my house is appraised higher than similar homes around it."

Say the district has your house at $420,000. A market value argument says a buyer wouldn't pay $420,000 for it on January 1. An unequal appraisal argument says the house two doors down, same floor plan, same age, is on the books for $28,000 less, and yours shouldn't be singled out.

How does a market value protest work?

You show the panel evidence that your home would have sold for less than the district's number. In a value protest, Texas Tax Code §41.43(a) puts the burden on the appraisal district, not on you. The district has to prove its value by a preponderance of the evidence (more likely right than not), and if it can't, you win.

The catch is the evidence. A market value case runs on sale prices, and Texas doesn't make home sale prices public. There's no state law requiring them to be disclosed, and the sale information appraisal districts do collect is generally kept confidential. Unless you're protesting, you generally can't see what the house around the corner sold for. Once you file a protest, you can ask the district for the comparable sales data it has for your hearing (Government Code §552.149), but you can only use it for the protest.

So the market value argument works best when you already have the number. You bought the house recently for less than the appraisal. You had an independent appraisal done. Or the house has a problem the district can't see from the street, like foundation movement, with a repair estimate to prove it. If the district values your home at $1 million or less and you have a recent, sworn appraisal from a Texas-certified appraiser, filing it with the board and delivering a copy to the chief appraiser at least 14 days before your hearing raises the bar the district has to clear to "clear and convincing evidence." The requirements are specific (the appraisal has to be done within 180 days of the hearing, among other things), so read §41.43(a-1) and (a-2) before relying on it.

How does an unequal appraisal protest work?

You compare your appraised value to the appraised values of similar homes, after adjusting for the differences between them. Under Texas Tax Code §41.43(b), you win unless the district can show your appraisal isn't unequal. The test most homeowner cases turn on, §41.43(b)(3), asks whether your appraised value is higher than the median appraised value of a reasonable number of comparable properties, appropriately adjusted. On appeal, district courts use the same comparison under §42.26(a)(3).

"Appropriately adjusted" is doing real work in that sentence. No two houses are identical, so you account for the differences: more square footage, a newer build, a pool, an extra garage bay. Then you take the middle value of the adjusted group (the median, so one oddball doesn't skew it).

The big advantage is that the evidence is public. These are the district's own appraised values, and since a 2025 change to Tax Code §25.01, districts in counties of 120,000 or more have to post their appraisal records online. You're holding the district to its own numbers.

Which argument should I lead with at my hearing?

Lead with whichever one your evidence supports best. If you have a recent purchase price, a professional appraisal, or a serious condition problem, open with market value. If you don't have any of that, but similar homes near you are appraised lower than yours, open with unequal appraisal.

Unequal appraisal can win even when the district's market value is arguably right, because the question isn't "what's it worth?" It's "are you treating me the same as my neighbors?"

Here's the honest part. An unequal appraisal case lives or dies on the comparables. If your "similar" homes are smaller, older or in a different subdivision, the district's appraiser will say so, and the panel will listen. And if your home is already appraised below its neighbors, this isn't your argument.

Can I protest on both grounds at once?

Yes, and you usually should. Check both boxes on your notice of protest (Comptroller Form 50-132, or the equivalent on your district's online system). It costs nothing and keeps both arguments available at the informal meeting and the hearing.

Our free tool is built around the unequal appraisal argument. It compares your appraisal to similar nearby homes using the appraisal district's own public records, adjusts for differences, and calculates the median. If your home sits above it, the evidence packet is ready to file.

Quick answers

What is unequal appraisal in a Texas property tax protest? Unequal appraisal means your home is appraised higher than comparable homes. The test most homeowners use, Texas Tax Code §41.43(b)(3), asks whether your appraised value is higher than the median appraised value of a reasonable number of comparable properties, appropriately adjusted.

Who has the burden of proof in a Texas property tax protest? In a market value or unequal appraisal protest, the appraisal district does. Under Texas Tax Code §41.43(a), the district must establish your property's value by a preponderance of the evidence, and if it can't, the protest is decided in your favor.

Are home sale prices public in Texas? No. Texas has no law requiring sale prices to be disclosed, and sale information given to appraisal districts is generally confidential. That makes market value arguments harder for homeowners without a recent purchase or appraisal of their own.

Should I check both market value and unequal appraisal on my protest form? Usually, yes. Checking both grounds costs nothing and keeps both arguments available at your informal review and Appraisal Review Board hearing.