Frequently Asked Questions
- I’m confused, because I see two values on this notice. What is Market Value?
- And, what is Appraised Value?
- You said “Taxable Value,” but that isn’t on this notice. What is Taxable Value?
- Why is my Market Value higher than my Appraised Value?
I’m confused, because I see two values on this notice. What is Market Value?
Market Value is determined by the real estate market, as of January 1 for the Tax Year at issue. It’s the amount for which a willing buyer and willing seller would convey the property in an arms-length transaction on the open market. Market Value is the only value on which you can file a property tax protest.
And, what is Appraised Value?
Appraised Value is the is the starting point for calculating your Taxable Value. The Appraised Value can be capped or limited by filing certain exemptions, such as a homestead or over-65 exemption. Appraised Value can never be higher than Market Value, and Tarrant Appraisal District (TAD) will raise your Appraised Value every year until it reaches Market Value.
You said “Taxable Value,” but that isn’t on this notice. What is Taxable Value?
Taxable Value is Appraised Value, less exemptions. This value is multiplied by your combined tax rate to determine your tax liability.
Why is my Market Value higher than my Appraised Value?
If your Appraised Value is less than your Market Value, you likely have a homestead exemption in place, which caps the amount TAD can raise your Appraised Value each year by 10%. TAD will continue to raise your Appraised Value by the full 10% every year until your Appraised Value reaches Market Value. That means your tax liability will increase every single year until your Market Value and Appraised Value are the same amount.
This is why it is so important to file a property tax protest every year to try to keep your Market Value and Appraised Value as close to the same amount as possible, to prevent future increases and also to increase your likelihood of having a successful property tax protest that reduces your tax liability, now and in the future.
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This is not intended to be legal advice or a substitute for legal advice, nor is it intended to deter you from contacting the firm with your questions. If you have questions, do not hesitate to reach out!