Your assessed value is what the county says your home is worth for tax purposes. Your market value is what your home would likely sell for today. In Texas, these two numbers are often different — and the gap between them is what determines whether you may be overpaying on property taxes.
Why Are There Two Different Values for My Home?
If you’ve ever looked at your appraisal notice and thought, “I don’t understand these numbers,” you’re not alone.
The distinction between assessed value and market value confuses most homeowners. Even people who’ve owned a home for years aren’t sure which number matters.
That confusion is understandable. The county uses several different values, and they don’t always mean what you’d expect. Let’s walk through what each one actually means.
What Is Market Value?
Market value is the price your home would likely sell for on the open market. It’s based on what buyers are actually paying for similar homes in your area.
Your county’s appraisal district estimates your home’s market value every year. They look at recent sales of comparable homes, your home’s size and age, and general market trends. This estimate is called the “appraised value” on your notice.
Important: the county’s market value estimate is just that — an estimate. It may not match what your home would actually sell for. Appraisal districts are working with limited data and updating values for hundreds of thousands of properties at once.
What Is Assessed Value?
Your assessed value is the number your taxes are actually based on. In Texas, it starts with market value and then applies any caps or exemptions.
If you have a homestead exemption, Texas law limits your assessed value increase to 10% per year. That means even if your market value jumps 25%, your assessed value can only go up 10%.
How Do These Numbers Affect My Tax Bill?
Your annual property tax bill is calculated by multiplying your taxable value by your total tax rate. The total rate includes school, city, county, and special district rates combined.
When Is Your Assessed Value Too High?
Your assessed value may be too high if it’s above what similar homes nearby are assessed at. This is the basis of an Equal and Uniform (E&U) protest.
Equal and Uniform (E&U) is a fairness comparison. It asks: are you being charged more per square foot than your neighbors? If the answer is yes, you may have grounds to protest. This standard is written into Texas law.
You don’t have to prove the county got your value wrong. You just have to show that similar homes are assessed at a lower rate. That’s a lower bar, and it’s the strategy behind the majority of successful Texas protests.
What About Market Value Protests?
A market value protest argues that the county’s estimate of what your home is worth is too high. This is different from E&U. You’re not comparing yourself to neighbors. You’re saying the market value itself is wrong.
Market value protests can work, but they require stronger evidence. You may need recent comparable sales that show homes like yours selling for less than the county’s estimate. In a rising market, this is harder to prove.
Most successful protests in Texas use the E&U approach. The evidence is more straightforward, and the standard is built into state law.
How Can I Check Whether My Value Is Fair?
Enter your address at CheckMyPropertyTax.com. In about 60 seconds, you’ll see how your assessed value per square foot compares to similar homes nearby.
If your value is above the peer median, you may have grounds to protest. A protest-ready evidence packet is available for $39.99. It includes an E&U equity report, a condition evidence toolkit, and a county-specific filing guide. No contract. No percentage fee. You keep 100% of any savings.
Frequently Asked Questions
Can my assessed value be higher than my market value?
In some cases, yes. If the county’s market value estimate is too high, your assessed value (even after caps) could still be inflated. That’s when a market value protest may be appropriate.
What if I don’t have a homestead exemption?
Without a homestead exemption, there is no 10% cap. Your assessed value equals your market value. Filing for the exemption is free and can be done online in most Texas counties.
Does protesting lower my home’s sale price?
No. Assessed value and market value are different. A lower assessed value means lower taxes. It does not change what a buyer would pay for your home.
Can my assessed value go up from protesting?
No. Texas law says your assessed value cannot increase as a result of a protest. The worst outcome is no change.