A person examining documents
Photo by Mikhail Nilov on Pexels
| |

Equal & Uniform vs. Market Value: Which Protest Wins?

Byeditorialteam Reading Time: 7 minutes

You have two powerful paths in Texas; the winner is the one your evidence can actually prove.

A person examining documents
Photo by Mikhail Nilov on Pexels

Key Takeaways

  • Texas owners may protest on market value or unequal appraisal (equal & uniform); both are recognized in statute and carry defined standards. Texas ComptrollerTexas StatutesFindLaw Codes
  • The appraisal district bears the burden of proof on value at the ARB for market-value disputes under Tax Code §41.43. FindLaw Codes
  • Equal & uniform wins when your appraised value is out of line with comparable peers per §42.26 methods (e.g., exceeding the median level of appraisal). FindLaw Codes
  • Most owners must file by May 15 or 30 days after the notice is delivered, whichever is later—missing that date is the easiest way to lose before you start. Texas Comptroller
  • If you still disagree after ARB, you may pursue regular or limited binding arbitration under Comptroller rules. Texas Comptroller+1

Assumptions & Inputs

  • Location: Texas (examples reference statewide rules; Harris County workflows are similar).
  • Snapshot date: September 7, 2025.
  • Illustrative figures only: example appraised value $350,000*; requested value $330,000*; composite tax rate 2.50%*.
  • Examples exclude escrow timing, exemptions beyond homestead, and any future rate changes.

1. What It Is

In Texas, a property tax protest is your formal challenge to the appraisal district’s value or treatment of your property. Two core lanes exist:

  • Market value: You argue the district’s opinion of market value is too high based on sales, condition, or economics.
  • Equal & uniform (unequal appraisal): You argue your appraised value is not uniform when measured against comparable properties; relief aims to align you with the peer median according to Tax Code §42.26. FindLaw Codes

Both lanes run through the appraisal district, with a hearing before the Appraisal Review Board (ARB) if you don’t resolve informally. The Comptroller’s guidance sets expectations, deadlines, and appeal options. Texas Comptroller

2. Why It Matters

When market value tends to win

  • You have recent, arm’s-length sales that adjust cleanly to your home (GLA, age, condition).
  • You can document deferred maintenance or damage (roof, foundation, flood) with bids and photos.
  • You can explain time adjustments if comps are older or the market shifted.

When equal & uniform tends to win

  • Your subdivision is uniform (similar age, plan types, lot sizes), and your appraised value looks high versus peers’ appraised medians per §42.26.
  • Sales are thin or noisy, but peer appraisals cluster tightly—perfect for a clean equity grid. FindLaw Codes

When a protest may not cut this year’s bill

  • Homestead cap mechanics can mean your appraised value (used to compute taxes) is already below market—even if you win on market value, the current bill might not shift. Future year protection can still matter. Texas Comptroller

3. The Math (kept light but reproducible)

Inputs & Formulas

  • Tax due* ≈ Appraised value × Composite rate.
  • Savings from a reduction* ≈ (Old appraised − New appraised) × Composite rate.
  • Equity median (concept): compute the median appraised $/ft for a reasonable number of comparable properties; target that median for your requested appraised value under §42.26. FindLaw Codes

Example Walkthrough (illustrative)

  • Current appraised value $350,000*; requested $330,000*; rate 2.50%*.
  • Estimated annual savings*: (350,000−330,000)×0.025=$500(350{,}000 – 330{,}000) × 0.025 = \$500(350,000−330,000)×0.025=$500.
  • If your comps justify $330,000* on market value, or your equity grid shows a peer median at $330,000*, your requested value and the savings math line up.

Sensitivity

  • Higher composite rates magnify each dollar of reduction.
  • Equity arguments rest on peer selection and adjustments; small peer changes can swing the median.
  • Under a homestead cap, today’s market win may secure next year’s position more than this year’s tax. Texas Comptroller

4. Rules & Eligibility (what Texas law actually says)

  • Grounds to protest include market value, unequal appraisal, exemptions, and more under Tax Code Chapter 41. Texas Statutes
  • Burden of proof: In a protest on value, the appraisal district must establish the property’s value by a preponderance of the evidence (see §41.43). If it fails, the owner prevails. FindLaw Codes
  • Equal & uniform: Relief methods in §42.26 allow reduction if your appraisal ratio exceeds the median level for a reasonable peer set or if your appraised value exceeds the peer median (with appropriate adjustments). FindLaw Codes
  • Deadlines: In most cases, you must file by May 15 or 30 days after the notice is delivered—whichever date is later. Texas Comptroller
  • Appeals: After ARB, owners may pursue regular binding arbitration (value disputes) or limited binding arbitration (procedural issues). Texas Comptroller+1

5. Steps & Timeline (checklist for either lane)

  1. Calendar your deadline from the notice (the later of May 15 or 30 days after delivery). Texas Comptroller
  2. File the protest and request the district’s evidence. Use the Comptroller’s Notice of Protest if needed. Texas Comptroller
  3. Build two packets in parallel:
    • Market: recent sales, adjustments, photos, repair bids.
    • Equity: peer list, appraised $/ft, median math, short narrative.
  4. Try any informal resolution channel available at your CAD; if not resolved, prepare for ARB using the Comptroller’s materials and required procedures. Texas Comptroller
  5. If dissatisfied with ARB, evaluate binding arbitration eligibility and timelines. Texas Comptroller

6. Risks & Pitfalls (and fixes)

  • Blending lanes in one slide. Keep market and equity arguments separate with distinct exhibits.
  • Weak comparables (non-arms-length, heavy flips without adjustments). Be explicit about time and condition adjustments.
  • Peer-set games in equity claims. Use a reasonable number of truly comparable properties and show why each belongs in the set per §42.26. FindLaw Codes
  • Deadline miss. The clock runs from delivery of the notice; late filings narrow your options. Texas Comptroller
  • Cap confusion. Winning market value doesn’t always change a capped appraised value in the same year; be clear on expectations. Texas Comptroller

7. Pricing & Negotiation (valuing the ask)

  • Lead with a single requested value and a one-line rationale:
    • Market: “Sales 1–3 adjusted support $330,000*.”
    • Equity: “Peer median $/ft implies $330,000* under §42.26.” FindLaw Codes
  • Add the tax effect line so panels can see stakes without digging: “At 2.50%, reduction to $330,000 ≈ $500* annual savings.”

8. Templates & Tools

Calculation template (copy/paste)

  • Savings* = (Old appraised − New appraised) × (Composite rate).
  • Peer median $/ft = median(Peer appraised value ÷ Peer GLA).
  • Requested appraised* (equity) = Peer median $/ft × Subject GLA (with notes on any warranted adjustments under §42.26). FindLaw Codes

Download/Spreadsheet idea

Account | Address | Year Built | GLA | Condition Notes | Sales 1–4 (adj.)* | Subject $/ft* | Peer IDs | Peer $/ft (appraised) | Peer Median | Requested Appraised* | Rate* | Est. Savings*

9. Real-World Examples (anonymized, realistic)

  • Market-first win: Seller documented hail roof and foundation bids, attached three arms-length comps with time/condition adjustments, and secured a negotiated cut close to the requested value.
  • Equity-first win: In a uniform 1990s section, subject’s appraised $/ft* sat ~8% above a tight peer median; the ARB aligned the account to the median after a clean §42.26 grid. FindLaw Codes
  • ARB to arbitration: Owner presented strong evidence; ARB reduction was modest. Owner filed regular binding arbitration on time and obtained an outcome nearer to the sales-supported figure (deposit and eligibility rules applied). Texas Comptroller

10. Next Actions

  1. Decide your lead lane based on evidence: market or equity.
  2. Build the other lane anyway; sometimes the backup wins.
  3. Calendar the Comptroller-stated deadline (May 15/30-day rule). Texas Comptroller
  4. Prepare a three-minute ARB script and a one-page summary with your number, rationale, and savings math.
  5. If needed, review binding arbitration steps and deposits before you leave the ARB. Texas Comptroller

CTA: Get first access to verified assumable deals. Join the VIP Interest List on mortgagehandoff.com to receive private details before public listings.

FAQs

What’s the practical difference between “market value” and “equal & uniform”?
Market value targets what a buyer and seller would agree to under normal conditions. Equal & uniform tests whether your appraised value is out of step with comparable peers and offers a statutory remedy to bring it to the median. FindLaw Codes

Who has the burden of proof at the ARB on market value?
Under §41.43, the appraisal district must establish the property’s value by a preponderance of the evidence; if it doesn’t, you prevail. FindLaw Codes

Can both lanes be argued in one protest?
Yes. You may raise multiple protest grounds. Present separate exhibits for clarity—one for market, one for equity—so panelists aren’t forced to untangle mixed math. Texas Statutes

When should I consider arbitration?
If the ARB decision is materially inconsistent with your evidence, and you meet eligibility, regular binding arbitration may be a faster, less costly alternative to district court. Limited binding arbitration addresses certain procedural failures. Texas Comptroller+1

What happens if I miss the deadline?
The Comptroller notes the usual deadline is May 15 or 30 days after the notice is delivered—whichever is later. Late options are limited and circumstance-dependent; act promptly. Texas Comptroller

Numbers & Assumptions Disclaimer

All example appraised values, tax rates, savings, and timeframes in this article are illustrations based on the “Assumptions & Inputs” section as of the stated “Last updated” date. Actual results vary by evidence quality, appraisal district decisions, ARB/arbitration outcomes, adopted tax rates, exemptions, and applicable laws. No guarantees are expressed or implied.

General Information Disclaimer

This article is for educational purposes only and is not tax, legal, or financial advice. All protests and appeals are subject to Texas law, local appraisal district procedures, ARB rules, and Texas Comptroller arbitration programs. Consult licensed professionals for advice on your situation.

References (authoritative; direct links)

Similar Posts