Difference Between the Tax Protest & the Residence Homestead Exemption

When it comes to lowering your property tax bill in San Antonio, two of the most effective tools are the Residence Homestead Exemption and the Tax Protest. One key difference is that the Homestead Exemption is specifically for those who live at the property as their primary residence, while the Tax Protest can be filed for any of an owner’s properties. Both are super easy ways to reduce your property tax bill, but they each have different processes and financial impacts.

Unfortunately, some homeowners incorrectly assume that filing a tax protest will decrease their home's value when they decide to sell, but there's a difference between market value and appraised value when it comes to taxes. Market value is simply the price that your home is selling for while appraised value is the amount that your home will be taxed on. When you do decide to sell, Alamo Leases can connect you with real estate agents and appraisers who can evaluate your property at a competitive price.

Subscribe to Alamo Leases Premium for a step-by-step example of how we obtain free evidence for the tax protest and how we remotely handle the process ourselves—saving us nearly $1,000 in property taxes each year. We regularly refer owners with larger real estate holdings to property tax professionals that can defend your case with strong evidence. We also show homeowners how to submit their application for the Residence Homestead Exemption for free.

What is the Tax Protest?

The Bexar County Tax Protest allows owners to disagree with the appraised value of their property to reduce the amount of taxes they owe. The tax protest can be filed on any property you own, not just your primary home as with the Residence Homestead Exemption.

The process involves gathering evidence to show that your appraised value is too high. This could include recent sales data for similar properties in your area, photos of damages, or any other relevant data. While the Homestead Exemption only requires a quick one-time application, the Tax Protest requires you to actively prove that the appraised value of your property is too high with evidence. With Alamo Leases Premium, you can learn how to get free evidence and submit everything online.

What is the Residence Homestead Exemption?

This exemption is for homeowners who occupy the property as their primary residence as of January 1st of the tax year. Just like the Tax Protest, the Residence Homestead Exemption reduces the appraised value of your home, which then lowers your property taxes. What’s convenient about this exemption is that it only needs to be submitted once unless you change residences, and you can email this simple application to cs@bcad.org or mail it directly to BCAD.

Financial Impact of the Residence Homestead Exemption and the Tax Protest

Fortunately for Texans, the Homestead Exemption more than doubled to $100,000 in 2024. This basically means that homeowners won’t need to pay taxes on $100,000 of their home’s value assuming they actually apply for it. Since the Bexar County property tax rate is 2.35%, this exemption saves homeowners $2,350 on property taxes annually. However, according to an Express-News analysis, more than 75,000 residences in Bexar County haven’t applied for the Homestead Exemption, even though they are eligible.

Savings on the Tax Protest are less clear since it depends on the evidence you submit and the final appraised value that BCAD decides on. Be sure to Estimate How Much Money the Tax Protest Can Save You to better understand the immense financial impact that it can have over time. In addition, Alamo Leases can always refer you to property tax professionals to help further reduce taxes.

Why You Should Take Advantage of Both

Given property values and tax rates in Bexar County, homeowners could see substantial savings each year by taking advantage of these opportunities. While the Residence Homestead Exemption is a fast one-time application available to homeowners who live on the property, the Tax Protest is for any property, but it requires you provide evidence of overvaluation. At Alamo Leases, we believe that it’s important to submit both to defend against high property values and tax rates.

Subscribe to Alamo Leases Premium for a step-by-step example of how we get free evidence for the tax protest and how we remotely handle the process ourselves—saving us nearly $1,000 in property taxes every year. We often refer owners with more real estate assets to property tax professionals that can defend your case with strong evidence. We also show homeowners how to submit their application for the Residence Homestead Exemption for free.