If you’re looking to hire a property tax consultant to handle your appeal, part of your decision-making process may include comparing fees among firms.
Some firms will charge an upfront subscription fee or flat fee before they file your appeal. You should not have to pay an upfront fee to a firm; you should only pay a fee if they achieve a reduction.
A reputable property tax protest company should only charge you a fee if they achieve a reduction for you, known as a contingency-based fee.
Contingency-Based Fees
The contingency-based fee is a percentage of the estimated tax savings you receive if they achieve a reduction. Such fees can vary among firms, typically ranging from 25 to 50%.
Let’s use an example to show what you could pay a property tax consultant. If a firm achieved a value reduction of $20,000 and your property tax rate is 3%, that equates to $600 in savings on your property tax bill. If your firm charges 25% in contingency fees, you would pay $150 to that firm.
With a contingency fee structure, there is little risk to you. You only pay a fee if the firm achieves a reduction.
Lower Fees Do Not Equate to More Savings
In 2023, North Texas Property Tax Services’ average reduction in Dallas County was $89,003. Other major property tax firms (with a minimum of 500 accounts) averaged $31,908. Expressed as a percentage, NTPTS achieved an average reduction of 7%, compared to 5% from other firms.
NTPTS Fees vs. Other Firms
Inferior firms’ fees are 25%, while our contingency-based fees are 40%. (Other fee structures may apply for special appraisals (ie. Agriculture, Limited, Minerals, etc.) Inferior firms discount their rate because they cannot compete with our results.
Let’s use an example of a home with an appraised value of $2 million to illustrate why service fees shouldn’t be your only consideration when choosing a property tax protest company.
Using the average reduction data above, NTPTS would achieve a $140k reduction on this $2 million property, while other firms would achieve a $100k reduction.
In tax savings (assume a 3% tax rate), this would be equivalent to $4,200 in tax savings versus $3,000 in tax savings.
The homeowner would pay $1,680 to NTPTS versus the lower $750 to other firms.
Net Savings with NTPTS vs. Other Firms
However, your NET SAVINGS WOULD BE MORE by choosing NTPTS. Here is how:
| Fees | Reduction | Tax Savings | Fees Paid to Firm | Net Savings to YOU! | |
|---|---|---|---|---|---|
| NTPTS | 40% | $140,000 | $4,200 | $1,680 | $2,520 |
| Other Firms | 25% | $100,000 | $3,000 | $750 | $2,250 |
Example using $2M appraised value and 2023 reductions
This means that if you chose a firm that charges a lower fee, you would be giving up 10% in net savings ($2,520 vs. $2,250).
A lower fee does not equate to more savings to you. You should choose a firm based on qualifications and reputation.
And while no firm can claim they win every appeal, we are always able to show our clients that we were prepared with the best and most complete information in the industry. Each account gets an individual, thorough review every step of the way, from filing to appeal.
Results are the key factor, and no other firm can come close to the level of detail and preparation in our appeals.
Find out why NTPTS appeals are different.