Every spring, millions of Texas homeowners receive a Notice of Appraised Value from their county appraisal district. Most glance at the number, feel a flash of frustration, and toss it aside. Some stick it on the fridge and forget about it. A few throw it away without opening it.
That letter is actually the starting gun for the most important financial decision you can make as a Texas homeowner. It tells you what the county thinks your property is worth, and it gives you a narrow window to disagree. Miss that window and you are locked into whatever value the appraisal district assigned, no matter how wrong it might be.
The problem is that the NOAV is not exactly user-friendly. It contains multiple values that sound similar but mean very different things. It uses terminology that even longtime homeowners find confusing. And the consequences of misunderstanding it — or ignoring it — can cost you hundreds or thousands of dollars per year.
Here is a plain-language walkthrough of everything on your Notice of Appraised Value: what it means, why it matters, and what to do about it.
What is a Notice of Appraised Value?
The Notice of Appraised Value (NOAV) is an official document from your county appraisal district. Under Texas law, the appraisal district is required to send you this notice before they can raise your property's appraised value for the tax year. It is your formal notification that the county has reassessed your property and believes it is worth a different amount than last year.
The NOAV is not a tax bill. It does not tell you what you owe. It tells you what the county thinks your property is worth, which is the basis for calculating your future tax bill. The actual tax bill comes later in the year, after taxing entities (school districts, cities, special districts) set their rates.
Key facts about the NOAV
- Who sends it: Your county appraisal district (HCAD, DCAD, TCAD, etc.)
- When it arrives: Usually mid-April, though timing varies by county. Check your county appraisal district website for the exact date.
- What it triggers: Your protest deadline. Typically 30 days from the date the notice is mailed, or May 15, whichever is later.
- What it contains: Your property's new appraised values, exemptions, property details, and protest filing instructions.
- Why it matters: This is your window to challenge the appraisal district's valuation. Miss the deadline and you accept their number.
If your property's appraised value did not change or went down, you may not receive a NOAV at all. The notice is only required when the appraisal district raises your value. However, you can still protest even if you do not receive a notice — check your county's appraisal district website for your current values and protest deadline.
The three values on your NOAV, explained
This is the most important section of this guide. Your NOAV contains three different "values" for your property, and confusing them is the single most common mistake Texas homeowners make. Each value serves a different purpose, and only one of them is what you actually pay taxes on.
Market Value
This is what the appraisal district believes your property would sell for on the open market as of January 1 of the tax year. It is their estimate based on comparable sales, property characteristics, and market conditions in your area. It is not gospel. It is not even necessarily close to what your home would actually sell for. It is an estimate, and estimates can be wrong.
This is the value you protest. If you believe the appraisal district has overestimated what your home would sell for, you file a protest to argue for a lower market value.
Assessed Value (Capped Value)
For homesteaded properties, the assessed value is capped at a maximum 10% annual increase over the prior year's assessed value. This is the protection provided by the Texas homestead cap. Even if your market value jumps 30% in a year, your assessed value can only go up 10%.
The assessed value equals the lesser of (a) your market value or (b) your prior year's assessed value multiplied by 1.10, plus the value of any new improvements. If you do not have a homestead exemption, your assessed value equals your market value with no cap.
The difference between your market value and your assessed value is known as the cap-gap. Understanding this gap is critical to knowing whether a protest will actually save you money.
Taxable Value
This is the number your taxes are actually calculated on. It equals your assessed value minus any exemptions you have filed (homestead exemption, over-65, disabled veteran, etc.). This is the bottom line — the value that gets multiplied by the tax rate to produce your bill.
If your assessed value is $380,000 and you have a $100,000 homestead exemption, your taxable value is $280,000. That is what the school district, city, and county multiply by their respective tax rates.
Putting it together: A real example
Market Value
$450,000
What the county says your home would sell for
Assessed Value
$380,000
Capped at 10% increase from prior year
Homestead Exemption
-$100,000
Standard homestead exemption
Taxable Value
$280,000
What you actually pay taxes on
In this example, the $70,000 cap-gap between market value ($450K) and assessed value ($380K) means a protest that lowers your market value to $420,000 would not change your tax bill at all — your assessed value is still below both numbers. You need to get the market value below $380,000 to see an immediate tax reduction.
The cap-gap: Why your taxes can rise even when your home loses value
One of the most frustrating experiences for Texas homeowners is watching their property's market value drop while their tax bill goes up. This is not a mistake. It is the cap-gap closing.
During years when the Texas real estate market was climbing 15-25% annually, the 10% homestead cap held assessed values down. A gap opened between what the county said your home was worth (market value) and what they could actually tax you on (assessed value). That gap was quietly saving you money.
But the gap does not stick around forever. When market values flatten or fall, the assessed value can keep rising (up to 10% per year) until it catches up to the market value. During this catch-up period, your taxes go up even though your home's market value may be declining.
We have written a complete guide to the cap-gap with a 5-year example that shows exactly how this works, including when protesting helps and when it does not. If your NOAV shows a significant gap between your market value and assessed value, read that guide before deciding whether to protest.
Check your property values instantly
Our free scorer shows your assessed value vs market value, compares you to neighborhood comps, and tells you if a protest makes sense.
Check Your Property FreeField-by-field NOAV walkthrough
Your NOAV contains more than just the three value figures. Here is what every section means and why you should pay attention to it. Refer to our jargon decoder if any terminology is unfamiliar.
Property account number
This is your unique identifier in the appraisal district's system. You will need this number when filing a protest online or by mail. It is usually a long string of digits, sometimes with hyphens. Write it down or take a photo of your notice.
Owner name and mailing address
Verify this is correct. If your name is misspelled or the mailing address is wrong, contact the appraisal district to update it. An incorrect address can cause you to miss future notices and deadlines.
Legal description
The formal legal description of your property, including lot number, block, and subdivision name. This is the same description that appears on your deed. Verify it matches your property.
Prior year vs current year market value
This shows your market value from last year next to the new proposed value. The difference tells you how much the appraisal district thinks your property appreciated (or depreciated). Large increases are worth examining closely — they may not reflect actual market conditions in your specific neighborhood.
Prior year vs current year assessed value
Same comparison for the assessed (capped) value. If you have a homestead exemption, this number should not have increased by more than 10% from last year. If it did, that may indicate a new improvement was added to your property record or an error occurred.
Improvement value vs land value breakdown
Your total market value is split into two components: the value of the land and the value of improvements (the building). This split matters for protests because you can argue that either component is too high. In some counties, land values have been rising faster than improvement values, and challenging the land component is a valid strategy.
Exemptions listed
This section shows which exemptions are applied to your property. If you have a homestead exemption filed, it should appear here. If you qualify for additional exemptions (over-65, disabled veteran, surviving spouse) and they are not listed, contact your appraisal district immediately. Missing exemptions mean you are paying more than you should.
Protest deadline date
This is the single most important piece of information on your NOAV. It is the last day you can file a protest for this tax year. In most Texas counties, the deadline is May 15 or 30 days after the notice is mailed, whichever is later. Miss this date and you cannot protest, period.
Filing instructions and options
Most NOAVs include brief instructions on how to file a protest. In larger counties, you can typically file online through the appraisal district's website. The notice may include a URL, a QR code, or a tear-off form you can mail. Our complete protest guide covers the filing process in detail for every major county.
What triggers a protest?
Not every NOAV warrants a protest. But certain red flags on your notice should prompt you to dig deeper. Here are the situations that most commonly lead to successful protests.
Strong reasons to protest
Market value increased more than your neighborhood average. If your value jumped 15% but homes around you only went up 5-8%, the appraisal district may have overestimated your property specifically. This is an equity argument — you are being treated differently than comparable properties.
You know of similar homes appraised lower than yours. If the house next door has the same square footage, age, and condition but is appraised at $50,000 less, you have a strong comparable-property case. This is the most common and most effective protest strategy.
There are errors in your property record. Wrong square footage, an extra bathroom that does not exist, incorrect lot size, or a condition grade that does not match your home's actual state. Appraisal districts report finding data errors in 10-15% of properties they review. Errors inflate your value.
Your home has condition issues not reflected in the appraisal. Foundation problems, roof damage, outdated systems, or deferred maintenance can all reduce your home's actual market value below what the appraisal district assigned. Bring documentation (photos, repair estimates).
You recently purchased for less than the appraised value. If you bought your home six months ago for $375,000 and the appraisal district says it is worth $420,000, your closing price is strong evidence that their estimate is too high. Bring your settlement statement.
If any of these apply to your situation, a protest is likely worth your time. Our 5-question decision framework walks you through a quick assessment to determine the strength of your specific case.
What to do when you receive your NOAV
You have the letter in your hand. Here is the step-by-step process, in order.
Do not panic
A higher appraised value does not automatically mean higher taxes. The homestead cap may still be protecting you. And even if your taxes do go up, a successful protest can bring them back down. The worst thing you can do is ignore the notice out of frustration.
Check the property details for errors
Look up your property on your county appraisal district website. Check the square footage, bedroom count, bathroom count, year built, lot size, and condition grade. If anything is wrong, you have an almost automatic basis for a protest. Errors are more common than you would expect.
Compare your value to similar homes
This is where our free tool comes in. Enter your address and see how your property's per-square-foot value compares to similar homes in your area. If you are above the median, you may have a strong equity case. If you are right at the median, the case is weaker.
Decide whether to protest
For most homeowners, the answer is yes. Filing a protest costs nothing and has no downside — the appraisal district cannot raise your value as a result of your protest. The only cost is your time. Our decision framework helps you assess whether the potential savings justify the effort.
File before the deadline
The deadline is printed on your NOAV. In most counties it is May 15 or 30 days after mailing, whichever is later. Do not wait until the last day. File as soon as you decide to protest. Our 30-minute checklist covers the entire process from start to finish. For a comparison of DIY vs consultant options, see our cost comparison guide.
Common NOAV mistakes homeowners make
After years of reviewing property tax data across Texas counties, these are the mistakes we see over and over. Avoiding them puts you ahead of most homeowners before you even file a protest.
Ignoring the NOAV entirely
This is the most expensive mistake. Every year, millions of Texas homeowners let their protest deadline pass without filing. The appraisal district's value becomes final. Even if your home is over-assessed by $50,000, you have no recourse until next year. Open the letter. Read the numbers. Mark the deadline on your calendar.
Confusing market value with assessed value
A homeowner sees their market value at $450,000 and panics, thinking they are being taxed on that full amount. But if their assessed value is $380,000 due to the homestead cap, their taxes are based on the lower number. Understanding the difference between these values changes whether a protest makes sense and how to approach it.
Assuming you cannot protest because your value went down
Even if your market value dropped, protesting can still make sense. Lowering the market value further anchors it at a lower baseline, which slows the assessed value catch-up in future years. Additionally, your value may have dropped but still be higher than comparable properties in your area. Check the Harris County or Dallas County guides for county-specific context.
Not checking for errors in property details
The appraisal district records might list your home at 2,400 square feet when it is actually 2,200. They might count a half-bath as a full bath, or record a detached garage as attached. These errors inflate your value and are among the easiest protests to win. Always verify the physical details before looking at the valuation.
Waiting until the last day to file
Procrastination creates problems. Online filing systems can crash on deadline day due to high traffic. Mail-in protests can get delayed. If you know you want to protest, file early. There is no advantage to waiting, and filing early often gives you a better selection of hearing times and dates.
Your NOAV is an invitation to save money
Most homeowners treat the Notice of Appraised Value as bad news. In reality, it is an invitation. The appraisal district is telling you what they think your property is worth and giving you a chance to disagree. In Texas, you have a legal right to challenge that number, and the process is designed to be accessible to homeowners — no attorney or consultant required.
The key is understanding what the numbers on your NOAV mean, checking them against reality, and acting before the deadline. That is what this guide is for.
Start with our free tool. Enter your address and see how your property stacks up against neighborhood comparables. If the data shows you are over-assessed, our $79 evidence packet gives you everything you need to present a strong case at your hearing — comparable properties, valuation analysis, and step-by-step instructions.
For the full Texas property tax protest walkthrough, county-specific guides for Harris County and Dallas County, or to compare your options between DIY and hiring a consultant, check our blog and guides.