Commercial & Business Property
Texas Commercial Property Tax Appeals
Office, retail, industrial, multifamily, and special-purpose buildings in Texas are frequently over-assessed. Here's how commercial assessments work, the deadline to challenge yours, and what it takes to win.
How commercial is assessed
Texas (no state income tax) appraises at market value as of January 1 using cost, sales, and income approaches. Property taxes are high, so commercial stakes are large.
Burden of proof
At the ARB the appraisal district must support its value, but the owner should still arrive with a full evidence package — the practical burden of persuasion is on the protesting party.
Key to a Texas commercial appeal: Equal-and-uniform appeal
Texas uniquely lets you win by showing your appraisal is unequal compared to a reasonable number of similar commercial properties (median-adjusted) — even if market value is defensible. Protest to the Appraisal Review Board by May 15, then binding arbitration or district court. Note: paid representation may require Texas Property Tax Consultant registration depending on volume.
Texas Filing Deadline & Where to File
File With
Appraisal Review Board (ARB)
Deadline
May 15 (or 30 days from notice, whichever is later)
Window Opens
Notices of Appraised Value mailed by April 15 (or May 1 for large counties)
Typical Duration
2–4 months
Texas has no income tax — property taxes are high. File protest by May 15 or 30 days from notice. Over 50% of protests in some counties result in reduction. Binding arbitration or district court available after ARB.
How commercial value is proven
Income-producing commercial property is usually valued by capitalizing net operating income (NOI ÷ market cap rate). The strongest appeals come with a clean rent roll, a trailing-12-month operating statement, current vacancy, and market cap-rate support. Where the property is owner-occupied or special-purpose, the cost and sales-comparison approaches carry more weight.
Evidence that wins a commercial appeal
- Current rent roll and a trailing-12-month operating statement
- Actual vacancy and collection loss (vs the assessor's stabilized assumption)
- Market capitalization rate support for the property type and submarket
- Recent arm's-length sales of comparable commercial buildings
- Evidence of physical, functional, or economic obsolescence
- Any change in use, tenancy, or condition since the assessment date
How to appeal a commercial assessment in Texas
- 1Pull the assessment — confirm the assessed value, the assessment ratio/class, and how the assessor derived it (income, cost, or sales).
- 2Build the valuation — capitalize actual net operating income and gather comparable sales to establish market value as of the assessment date.
- 3File before the deadline — submit to Appraisal Review Board (ARB) by May 15 (or 30 days from notice, whichever is later), with the authorization signed by someone able to bind the owning entity.
- 4Present at the hearing — commercial hearings are evidence-driven; a clean income approach and credible comps carry the day.
Think your Texas commercial property is over-assessed?
We pull the assessment, build the income-approach case, and file the appeal. Fee: 20% of first-year savings — only if we win. Nothing upfront, and the reduction can hold for years.
Assessment ratios, class rates, and deadlines in Texas are set by statute and can change year to year, and often vary by county or municipality. Verify current figures and dates with your county assessor or clerk of the board before filing. This page is general information, not legal or tax advice. TaxedFairly is a product of WebLab LLC.