Unequal Appraisal: Your Secret Weapon
Most homeowners only argue market value. The real power move is unequal appraisal — and most people don't even know it exists.
Educational Information Only
The following summarizes how Texas Tax Code Section 41.43 has been applied in property tax protests. This is not legal advice. Consult a licensed attorney for guidance specific to your situation.
What is unequal appraisal?
Under Texas Tax Code Section 41.43, you can protest your property taxes by showing that your home is appraised higher than comparable properties in your area. This isn't about what your home would sell for — it's about whether you're being taxed fairly compared to your neighbors.
If similar homes nearby are appraised at $180 per square foot and yours is appraised at $220, that's unequal appraisal. The appraisal district is taxing you more heavily than your neighbors for equivalent property.
How it differs from market value
Market Value Protest
- “My home is worth less than you say”
- Based on comparable sales prices
- You must prove the CAD overvalued your home
- Harder to win in rising markets where sales prices support higher values
Unequal Appraisal Protest
- “My home is appraised higher than similar homes”
- Based on appraised values of comparable properties
- Burden of proof shifts to the appraisal district
- Works even when market values are high, because it's about equity, not price
Why it works when market value fails
In a hot market, comparable sales often support the district's appraised value. Market value arguments get dismissed because recent sales prove homes really are selling at or above appraised values.
Unequal appraisal sidesteps this problem entirely. Even if your home is worth every dollar the district says, you can still win if other similar homes are appraised lower. The question isn't “is the value right?” — it's “is the value fair?”
How the appraisal ratio works
The key metric is the appraisal ratio: a property's appraised value divided by its market value. If your appraisal ratio is higher than the median ratio of comparable properties, you have an unequal appraisal argument.
Example
- Your home: appraised at $400,000, market value $380,000 = ratio of 1.053
- Comparable homes median: appraised at $350,000, market value $370,000 = ratio of 0.946
- Your ratio (1.053) is higher than the median (0.946), demonstrating unequal appraisal
The burden of proof shifts
This is the critical advantage. In a market value protest, you bear the burden of proof — you must convince the ARB that the district overvalued your home. In an unequal appraisal protest, once you present evidence of inequality, the burden shifts to the appraisal district to justify the difference.
TaxRollback runs both arguments automatically
When you look up your property, TaxRollback generates both a market value analysis and an unequal appraisal analysis. Your evidence packet includes both arguments, giving you two independent chances to win. If the ARB rejects one, the other can still reduce your taxes.