Property Tax Notice Just Arrived? Here’s What Most Homeowners Get Wrong
If you just opened your property tax notice, it’s easy to assume that number reflects what your home is actually worth.
It doesn’t.
And that misunderstanding could be costing you thousands.
Tax Assessed Value vs. Market Value — What’s the Difference?
Your tax assessed value is what the county uses to calculate your property taxes.
It’s based on broad data, historical trends, and mass appraisal methods.
That means:
No one is walking through your home
No one is factoring in your upgrades (or lack of them)
And it may not reflect what’s happening in your neighborhood right now
Your market value, on the other hand, is what a real buyer would pay for your home today.
That number is driven by:
Recent comparable sales
Current buyer demand
Competition and inventory
Your home’s actual condition
These are two very different numbers—and they rarely match perfectly.
Why This Matters More Right Now
In markets like Austin, this gap has become more noticeable.
For years, homeowners benefited from being under assessed—meaning their tax value was lower than what they could actually sell for.
But over the past three years, as the market has shifted, we’ve seen the opposite happen.
Now, more homeowners are being over assessed.
In fact, in about 40% of the market analyses we run, homeowners are being taxed on a value that’s higher than what their home would realistically sell for today.
Real Examples from the Market
In Wooten, a home was assessed nearly $200,000 over its market value
→ That’s roughly $4,000/year in potential tax savings if successfully protestedIn Sunfield, a more typical case showed about $40,000 over assessment
→ That’s still about $1,000/year saved
This isn’t small money—it directly impacts your monthly housing costs.
So Which Value Should You Care About?
It depends on your situation:
If you’re selling:
Market value is everything. That’s what determines your listing price and what buyers will actually pay.If you’re owning:
Your tax assessed value matters more day-to-day, because it directly affects your property taxes—and your monthly payment.
The Bottom Line
Don’t just accept the number on your tax notice.
There’s a real chance your home is being over assessed—and if that’s the case, you have the right to challenge it.
We’ll be sharing more soon on exactly how to protest your property taxes and what that process looks like.
But if you want to get ahead of it now, we can run a quick analysis and tell you if you’re over assessed.
Message us—we’ll take a look for you.
