Houston, Texas
Harris County commercial property tax appeals
Appeals start with the Harris Central Appraisal District (HCAD) and go to the Harris County Appraisal Review Board (ARB). Here is how commercial evidence is built, filed and heard in Harris County.
- Assessor
- Harris Central Appraisal District (HCAD)
- First-level board
- Harris County Appraisal Review Board (ARB)
- Filing deadline
- May 15 or the 30th day after the notice of appraised value is delivered, whichever is later (Tex. Tax Code §41.44(a)(1))
- Commercial assessment level
- 100% of market value; non-homestead real property at or below the Comptroller's indexed threshold also has a 20% circuit breaker cap through the 2026 tax year (§23.231)
- Value standard
- Market value (Tex. Tax Code §1.04(7) and §23.01)
- Valuation date
- January 1 of the tax year
- Assessment cycle
- Annual: every account appraised at market value as of January 1
- Notices mailed
- Notices of appraised value delivered March through April; ARB protest hearings run May through October
How Harris County assesses commercial property
Harris County is the highest-volume protest jurisdiction in Texas, and HCAD appraises every commercial account at market value as of January 1, every year. Notices of appraised value go out in March and April, and the protest deadline is May 15 or 30 days after the notice is delivered, whichever is later. There is no fractional assessment ratio to back out: the appraised value on the notice, less any exemptions, is the number every taxing unit multiplies by its rate, so each dollar of reduction flows straight to the bill.
The process has two layers before any court. An HCAD appraiser meets with the owner or agent informally, and a signed agreement at that stage is final for the year. Anything unresolved goes to the Harris County Appraisal Review Board, where owners of large commercial, industrial and multifamily accounts can ask for a special panel whose members need professional credentials. Texas law puts the burden of proving value on the appraisal district, and it bars HCAD from using evidence it failed to share at least 14 days before the hearing when the owner asked for it.
Two arguments carry most Houston cases: an income approach built from the rent roll and a normalized operating statement, and an equal-and-uniform comparison under §41.43(b)(3) showing the subject sits above the median appraised value of comparable properties. After the ARB, owners choose district court, binding arbitration for property valued at $5 million or less, or a SOAH hearing for non-industrial property above $1 million.
Major commercial submarkets
- Downtown Houston CBD
- Galleria and Uptown
- Energy Corridor
- Westchase
- Northwest industrial (US 290 and Beltway 8)
- Southeast industrial and the Ship Channel
Uniformity authority
Tex. Const. art. VIII, §1; Tex. Tax Code §41.43(b)(3) and §42.26(a)(3)
Appeal statute
Tex. Tax Code §41.41 and §41.44 (protest); Chapter 42 (judicial review)
After the board
District court petition within 60 days of receiving the ARB order (Tax Code §42.21); binding arbitration through the Comptroller for property the ARB valued at $5 million or less (Chapter 41A); or the State Office of Administrative Hearings for non-industrial property valued above $1 million (Gov't Code §2003.901)
Official forms ATALI ELECTRIC fills for Harris County
| Form | Filed with | Purpose |
|---|---|---|
| Form 50-132, Property Owner's Notice of Protest | Harris County Appraisal Review Board | Starts the protest. Checking both incorrect market value and unequal appraisal keeps both arguments open at the hearing. |
| Form 50-162, Appointment of Agent for Property Tax Matters | Harris Central Appraisal District | Authorizes a consultant to file, receive notices and confidential information, and negotiate for the owner. |
| Form 50-283, Property Owner's Affidavit of Evidence | Harris County Appraisal Review Board | Presents evidence without a personal appearance; required for owners who appear by telephone or videoconference, and due before the hearing begins. |
Filing system: HCAD Electronic Filing and Notice System (iFile), with iSettle settlement offers for eligible owners
Hearings and evidence
Most commercial protests start with an informal meeting with an HCAD appraiser, and many settle there with a signed agreement. Unresolved protests go to an ARB panel of at least three members, or to a single-member panel if the owner asks for one in the notice of protest or at least 10 days before the hearing. Because Harris County exceeds 1.2 million residents, owners of commercial, industrial, utility and multifamily accounts above the Comptroller's indexed minimum (set at $50 million for 2020) can request a special panel whose members hold credentials such as a JD, MBA, CPA, MAI or CAE. Owners may appear in person, by telephone or videoconference, or by affidavit.
- 01Request HCAD's hearing evidence under §41.461. Information the district fails to deliver at least 14 days before the hearing cannot be used except to rebut the owner's case (§41.67(d)).
- 02The appraisal district carries the burden of proving value by a preponderance of the evidence (§41.43(a)). If the prior year's value was lowered in a protest that did not end in a written agreement, delivering income and expense statements or comparable sales at least 14 days before the hearing raises that burden to clear and convincing evidence (§41.43(a-3)).
- 03Evidence offered by affidavit must reach the ARB before the hearing begins, and an owner appearing by telephone or videoconference must offer all evidence by affidavit (§41.45(b)).
- 04Income and expense information provided to HCAD is confidential under §22.27 and may be disclosed only to the owner, an authorized representative, or in a property tax proceeding involving the owner.
Income evidence
HCAD generally values Houston office, retail, multifamily and hotel property with income models built on market rent, vacancy, expense and cap rate schedules by class and submarket. Owners are not required to hand over operating statements, but income evidence is the most direct way to show that a building 72% leased does not support a stabilized value, and §22.27 keeps it confidential. When the income approach does not move the panel, the §41.43(b)(3) equal-and-uniform argument often does, because it measures the subject against HCAD's own appraised values for comparable properties, appropriately adjusted.
Practitioner notes
- File on both grounds. A protest limited to market value gives up the unequal appraisal argument, which is frequently the stronger case for Class B office and older industrial space.
- Keep a district court appeal alive by paying, before the delinquency date, the lesser of the taxes on the undisputed value, the taxes under the ARB order, or the prior year's taxes (§42.08).
- Binding arbitration requires a deposit of $500 to $1,550 for non-homestead property depending on value, filed with the Comptroller within 60 days of the ARB order, and appealing to district court first waives the arbitration route.
- Under current law the §23.231 circuit breaker covers the 2024 to 2026 tax years only, so smaller commercial parcels capped below market value should be budgeted at full market value for 2027 unless the Legislature acts.
Harris County appeal questions
Last verified October 2026 against the assessor, board and statute.
Does HCAD assess commercial property at a fraction of value?
No. Texas appraises property at 100% of market value as of January 1, and taxing units apply their rates to that value after exemptions. The only limit on commercial increases is the 20% circuit breaker for non-homestead real property at or below the indexed threshold, which under current law covers the 2024 to 2026 tax years.
Is income data I give HCAD made public?
No. Section 22.27 makes income and expense information provided to an appraisal office confidential. It can be disclosed to the owner, to a representative authorized in writing, or in a judicial or administrative property tax proceeding to which the owner is a party.
Can a commercial property in Harris County use binding arbitration?
Yes, if the ARB order values it at $5 million or less. The request and deposit go to the Comptroller within 60 days of receiving the order. Higher-value property goes to district court or, for non-industrial property above $1 million, to SOAH.
What is the equal-and-uniform standard in Texas?
Under §41.43(b)(3) and §42.26(a)(3), the owner prevails if the appraised value exceeds the median appraised value of a reasonable number of comparable properties appropriately adjusted. It compares HCAD's value to HCAD's own values, so it works even when market sales are thin.
Nearby jurisdictions
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