How to Protest Your Commercial Property Tax in Texas (2026 Guide)

If you own commercial property in Texas, you have the legal right to protest your assessed value every single year. Most commercial property owners either don’t know this or assume the process is too complicated. It’s not.

This guide walks you through the entire Texas commercial property tax protest process — from determining if you have a case to winning at hearing.

Why Commercial Property Taxes Are So High in Texas

Texas has no state income tax. The state funds local government, schools, and infrastructure almost entirely through property taxes. That means Texas property tax rates are among the highest in the country, with effective rates on commercial properties ranging from 1.5% to over 3% of assessed value.

For a commercial property assessed at $2 million, that’s $30,000 to $60,000 per year in property taxes. If your property is overassessed by even 10–15%, you’re overpaying by thousands every year.

Step 1: Check Your Assessed Value

Every year, your county appraisal district (CAD) sends an appraisal notice — usually in April. This shows your property’s new assessed value. You can also look this up online at your county’s CAD website.

Compare your assessed value against what similar commercial properties in your area are selling for. If your assessment seems high relative to actual market conditions, you likely have a case.

Step 2: File Your Notice of Protest

The deadline to file is May 15 (or 30 days after your appraisal notice is mailed, whichever is later). You file a Notice of Protest with your county’s appraisal district. Most counties accept online filings.

You can protest on several grounds, but the most common for commercial properties are:

• Market value is too high — your property is assessed above what it would sell for
• Unequal appraisal — similar properties in the area are assessed lower than yours

Step 3: Gather Your Evidence

For commercial properties, three types of evidence are most effective:

Comparable Sales: Recent sales of similar commercial properties in your area that sold for less than your assessed value.

Income Approach: If your property generates rental income, the income approach often produces the strongest case. You calculate the property’s value based on its Net Operating Income (NOI) divided by a market capitalization rate. If the resulting value is lower than your assessment, you have strong evidence.

Equity Comparisons: Show that similar properties nearby are assessed at a lower per-square-foot rate than yours.

Step 4: The Informal Hearing

After filing, you’ll be scheduled for an informal hearing — a one-on-one meeting with an appraiser from the district. This is where most commercial cases are settled. Present your evidence clearly and be prepared to negotiate.

The appraiser has authority to offer a reduction on the spot. If the offer is acceptable, you sign a settlement and you’re done.

Step 5: ARB Hearing (If Needed)

If you can’t reach agreement at the informal hearing, your case goes to the Appraisal Review Board (ARB). This is a more formal hearing with a panel. You present your evidence, and the board makes a determination.

Most commercial property owners don’t need to get to this stage, but having a licensed representative present your case significantly improves your odds.

What to Expect in Savings

Commercial property owners in Texas who protest typically see reductions of 5% to 25% on their assessed values. On a $2 million property at a 2.5% tax rate, a 15% reduction saves you $7,500 per year — every year until the next reassessment.

Should You Hire a Professional?

If your time is valuable and you want the best possible outcome, working with a licensed property tax consultant makes sense — especially on contingency, where you pay nothing unless they deliver results.

A good consultant knows how to work the income approach, has relationships with appraisal district staff, and understands how to present evidence that moves the needle.

---

LowerMyCommercialTax handles the entire protest process for Texas commercial property owners on a 30% contingency basis. Request your free assessment to find out if your property is overassessed.