Texas Property Tax Appeal: Unequal Appraisal & Comp Equity Grid
By Harsha N Hegde | Updated: July 09, 2025
Worried your Texas property tax appraisal is too high? You’re not alone. Many homeowners feel their assessed values are unfair, especially as property taxes keep rising. The good news is you have the right to protest your appraisal and seek a reduction. In this guide, we’ll explain how to use an unequal appraisal argument and a comp equity grid (a grid of comparable properties) to potentially lower your property tax bill.
What is a comp equity grid? How do I find comparable properties?
Under the Texas Property Tax Code, a property owner can get relief if the appraised value of the property exceeds the median appraised value of a reasonable number of comparable properties appropriately adjusted. So, your challenge is to:
- find a reasonable number of comparable properties
- adjust them appropriately
- calculate the median appraisal value of those properties
A comp equity grid is essentially a matrix that lines up your subject property (the property you’re appealing) with its comparable properties and their characteristics. Each comparable property’s appraised value is adjusted up or down for differences from the subject (e.g. size, age, quality, etc.). After making adjustments for each comp, you calculate the net adjusted appraised value for each one. Finally, you take the median of these adjusted values. This median is the value you would argue for in your appeal — because it shows what similar homes are appraised at, on average.
For example, if the subject property is 2,000 sq. ft., 20 years old, 4 bed/2.5 bath, average quality single-family home, then the comps for this subject should be of similar age, size, bed/bath count, and quality, ideally in the same neighborhood. The closer the comps are to the subject property, the better.
Example Comp Equity Grid. In this example, the subject property (left column) is compared to three comparable homes, with adjustments made for differences in age, size, and features. After these adjustments, the median of the comparables’ adjusted values (around $295k in this case) can be used as the fair appraised value to argue for the subject property.
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Will equity comps help lower my property taxes?
Absolutely! In a booming real estate market, sales comps (recent sale prices) can be hard to find, so equity comps are the last recourse Texas homeowners have. By building a comp equity grid of assessed values, you can make a strong case for a reduction. In 2024, 80% of the homeowners who used our comps evidence got a reduction in their appraised value. We offer a 100% money back guarantee — get a reduction with our evidence, or your money back!
What is unequal appraisal in Texas?
Article 8 Section 1(b) of the Texas Constitution states: “All real and tangible personal property… shall be taxed in proportion to its value.” County Appraisal Districts (CADs) are tasked with appraising all properties at their market value. County assessors may randomly visit a few properties, but with hundreds of thousands of properties to appraise, CADs rely on a system called Computer-Assisted Mass Appraisal (CAMA) to value homes in bulk. CAMA systems work based on valuation models and the data they’re given. As such, automated valuations can sometimes miss the mark.
Unequal appraisal occurs when properties with similar characteristics in a given area are not appraised uniformly. In other words, if a home similar to yours is appraised much lower than yours, your property is being appraised unequally (not on a fair, uniform basis).
What does the Texas Property Tax Code say about unequal appraisal?
Texas Tax Code Section 42.26 provides the legal remedy for unequal appraisal. In summary, the law says a court must grant relief if either of the following is true for your property:
(1) The appraisal ratio of your property exceeds by at least 10% the median level of appraisal of a reasonable and representative sample of other properties in the district.
(2) The appraisal ratio of your property exceeds by at least 10% the median level of appraisal of a reasonable number of similar properties.
(3) The appraised value of your property exceeds the median appraised value of a reasonable number of comparable properties, appropriately adjusted.
Further, if you qualify for relief under more than one of the above, the court will order your appraised value reduced to the lowest value indicated by the evidence.
What is subject equity analysis?
Subject equity analysis is the process of comparing your subject property (the home under appeal) to other similar properties and adjusting for differences to see if your appraisal is fair. Essentially, it’s the analytical method behind an unequal appraisal protest: you gather a set of comparable homes, adjust their values to your home’s specs, and determine what your home should be appraised at. Performing a subject equity analysis (often by using a comp equity grid) helps you demonstrate whether or not you’ve been appraised equitably compared to your neighbors.
How many comps do I need for an appeal?
The law doesn’t specify an exact number of comparables — it just says a “reasonable number.” In practice, using around 5 to 10 good comps is generally considered a reasonable sample for a property tax appeal. Quality matters more than quantity, so focus on finding the best comparables available to support your case.
What is equal and uniform appraisal in Texas?
Properties that are similar in nature and character should be appraised and taxed uniformly and equitably. Section 1(a) of the Texas Constitution mandates: “Taxation shall be equal and uniform.” However, when properties are appraised unequally, this constitutional mandate is violated. The remedy for unequal appraisal is set forth again in the Texas Tax Code (Section 42.26):
(a) The district court shall grant relief on the ground that a property is appraised unequally if:
- the appraisal ratio of the property exceeds by at least 10 percent the median level of appraisal of a reasonable and representative sample of other properties in the district;
- the appraisal ratio of the property exceeds by at least 10 percent the median level of appraisal of a reasonable number of similar properties in the district; or
- the appraised value of the property exceeds the median appraised value of a reasonable number of comparable properties, appropriately adjusted.
If a property owner is entitled to relief under more than one of the above, the court must order the appraised value to be changed to the lowest value indicated.
Property owners are thus entitled to challenge their appraisal based on unequal appraisal if they discover they have not been assessed fairly.
What are appraisal comps?
“Appraisal comps,” short for “appraisal comparables,” are properties similar in key characteristics (size, age, quality, etc.) that are located near the subject property. Appraisers and homeowners use these comparable properties to arrive at a fair appraised value for the subject. Each comparable property is adjusted to the subject property for differences in factors like size, age, and quality to arrive at a median adjusted appraised value.
How do I find comparable properties for my property tax appeal?
Finding good comparables is easier than you might think. You can start by searching your county appraisal district’s online database for homes in your neighborhood that match your property’s size, age, location, and features. You can also use online tools or services to help identify similar properties (for example, our SquareDeal platform can find equity comps based on your address). For a step-by-step walkthrough, see our guide on how to find comparables for a property tax appeal.
How far away can comps be?
In general, comparables (comps) should be within about a mile of the subject property and preferably in the same neighborhood or school district. If there is a major divider like a river, train track, or highway, try to choose comps on the same side. In more rural areas or suburbs, you can extend the search radius — for example, up to 3–4 miles (and sometimes up to 5 miles) if needed — to find suitable comps.
How far back can appraisal comps go?
For sales comps, you should use sales from the prior year. For example, if you’re protesting your 2025 appraisal, sales from 2024 (the previous year) are ideal. Sales from early 2025 (January or February) might also be considered. For both sales and equity comps, the comparable properties’ “Year Built” should usually be within a ±10-year range of the subject property (older or newer homes can be adjusted accordingly). As always, the closer the comps are to the subject property (in time and characteristics), the better.
What is the difference between market value and unequal appraisal?
Market value is what your property would likely sell for on the open market. A market value protest argues that your appraised value is too high compared to that selling price. Unequal appraisal, on the other hand, means your property is appraised at a higher value relative to similar properties in your area. An unequal appraisal appeal argues that, even if your appraised value seems reasonable in isolation, you’re being taxed more per value than your neighbors’ properties. In short, a market value protest is about the accuracy of your valuation, while an unequal appraisal protest is about the fairness of your valuation compared to others.
About the Author
Harsha N Hegde is the founder of squaredeal.tax, a DIY platform that helps Texas homeowners protest unfair property tax assessments. He has helped thousands of Texas homeowners save money using comps-based evidence and practical guidance.
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