Texas is in many ways a low-tax state. There is no income tax or inheritance tax to worry about, while the sales tax is rather low. This is made up for by some of the highest property taxes in the country, with Texas being ranked around ninth place in the nation. This puts a lot of pressure on homeowners and businesses when it comes to funding their local government. Dozens of local entities count on these taxes to function, which provide basic services to county residents.
Because of the high stakes involved, it is important for Texans to explore every avenue of reducing their taxes. However, there are plenty of common mistakes that Texans make that cost them money every year. In this article, we will go through some of the costliest mistakes that you can make and how best to avoid them on your way to achieving financial stability and fair taxes.
Common Mistakes That Texas Taxpayers Make That Cost Them Money
Because property taxes are so important in Texas, overlooking even basic responsibilities can lead to unnecessary costs. Taxpayers who stay organized and review their records carefully are in a much better position to avoid preventable expenses. Many problems begin with missed dates, skipped reviews, or overlooked savings opportunities that could have been addressed with early action.
From missed deadlines to unclaimed exemptions, common errors can increase taxable value or prevent taxpayers from correcting inaccurate appraisals. Understanding where these mistakes happen is one of the best ways to reduce risk and keep property taxes from becoming more expensive than they should be.
Missing Deadlines
The Texas property tax system is highly predicated on deadlines, be they soft or hard ones. Property taxes are usually due on January 31, though this can be pushed back if that date falls on a weekend. Missing the deadline means that taxes quickly become delinquent, with interest and penalties starting the second the stroke of midnight falls. Other deadlines will instead block off an avenue for a taxpayer to use. This includes those for exemptions or appeals. By keeping these dates in mind, you can avoid any unforced errors and can save significant money in the process.
Important Texas Deadlines
- January 31: Property Taxes due
- April 15: Last day for businesses to file business personal property (BPP) renditions
- April 30: Final day to apply for exemptions
- May 15 (or 30 days after the appraisal notice was mailed): Deadline for property tax appeals.
Not Reviewing the Appraisal Notice
While it is easy to focus on January 31 as the last day for property taxes, in reality, the season is just getting started. In late March or early April, notices of appraised value are sent out by your appraisal district (CAD). These contain a slew of important information that needs to be examined and comprehended. The appraisal notice will have all the basic information on your property, including the owner’s name, its size, exemptions applied, classification, and the CAD responsible. While they are easy to overlook, any error in these basic statistics can be devastating. Missing exemptions or the incorrect owner, in particular, can lead to significant increases in taxes.
The notice will also contain two or three values. These are the market, appraised, and taxable value. Each of these needs to be looked at carefully to ensure that they are correct and are not too high. If these values are excessive or higher than those of neighbors with similar properties, then they should be challenged with a property tax appeal. It is easy for taxpayers to overlook this notice and the information contained within, often allowing problems to go unnoticed until a deadline passes.
Not Filing Property Tax Appeals
Not filing an appeal for incorrect information or inaccurate values can potentially cost you more than any other mistake. These challenges to your CAD can easily fix errors like incorrect measurements, classification, or nonexistent improvements. Appeals, along with exemptions, are the only way to lower the taxable value in Texas. By appealing values, you are able to lower your tax burden, as there is less for tax rates to be applied to. It is best to file appeals yearly, as tax rates and values are constantly changing, often increasing. Constant appeals can establish a baseline for your property, helping protect against spikes in the future.
While participation is growing, a low percentage of Texans actually challenge their appraisal, making it the most common error for all taxpayers. There are also many errors that can be made while carrying out a property tax appeal, and avoiding those mistakes starts with understanding how important the appeal process can be to controlling long-term tax costs.
Missing Exemptions
Texas offers several exemptions to help homeowners across the state. These were even recently enhanced in 2025, with many seeing large bumps in their ability to exclude value. The standard homestead exemption alone now shields $140,000 in a home’s value from school taxes. Exemptions for people over 65 or those with disabilities have increased to $60,000 and can be used with the homestead exemption to lower value by $200,000. Many first-time homebuyers, especially those from other states, are not aware of these exemptions and could pay more in taxes for years without knowing about them. Filing for exemptions is easy, and many can even be retroactively applied.
Avoid these Errors with Professional Help from O’Connor
There is a lot of information to stay on top of as a homeowner or business owner in Texas, but keeping track of everything is key to protecting your property and wallet. If you need help understanding your appraisal, filing exemptions, or appealing your taxes, we at O’Connor are here to guide you. As one of the largest firms in the country that specializes in property taxes, we have the resources to help you in your struggle against rising taxes. Based in Houston, we have been helping Texans for over 50 years and are able to help over 185,000 clients a year. We have branch offices all over Texas, which allows us to know what conditions are in a community and what the needs of our clients actually are.
When you join up with us, you will receive a client success consultant who will act as your personal guide through the process. This is a single person who will answer your questions and ensure that you are satisfied with our services. We believe that a personal touch is more important than ever, so we always prioritize giving you the best service possible. We can also send out personalized concierge visits to see your home or business firsthand. There is no charge to join us, and you will never be ambushed by hidden fees. Instead, you are only charged a contingency fee from your winnings.
Frequently Asked Questions About Property Tax Mistakes
Q: What is the costliest mistake a homeowner can make when it comes to taxes?
A: Missing the appeal deadline can often cause the most financial damage, as appeals can be used to fix appraisal issues or challenge unfair values that lead to high tax bills.
Q: What is the biggest mistake that Texas businesses make?
A: Failing to file their business personal property renditions on time. Missing the April 15 deadline has many consequences. First, fines are usually given for a late filing. Second, the ability to launch a commercial property tax appeal can be forfeited. Third, the new BPP exemption of $125,000 can be taken away.
Q: Why is the notice of appraised value important?
A: By reviewing the notice, you are able to spot issues in values or property statistics that could be costing you money. As you only have until May 15 or 30 days after the notice was mailed, whichever is later, to file an appeal, catching these issues quickly is the best way to avoid compounding problems.
Q: Does the homestead exemption work with other types?
A: Yes, it does. For instance, it will work with either the over-65 or disabled person’s exemption, combining for $200,000 in reduced value when it comes to school taxes. Other exemptions will not work together, such as the one for the disabled and those over 65. If you qualify for both of them, then you must choose one. Each grants a $60,000 reduction, so one is not more potent than the other.
