Are Property Tax Protest Companies Worth It? Complete Cost Analysis (2026)

Wondering if you should hire a property tax protest company? Here's the truth about costs, success rates, and when they're worth your money.

With property taxes rising across the country, protest companies promise to save you money. But are they worth their fees? This comprehensive analysis breaks down the real costs, benefits, and alternatives to help you make the right decision.

Quick Answer: It Depends on Your Situation

Property tax protest companies are worth it when:

• Your potential savings exceed $500/year (contingency fees make sense)
• You lack time or expertise for DIY appeals
• You own multiple properties (economies of scale)
• Previous DIY attempts failed (professional expertise helps)

They're NOT worth it when:

• Upfront fees exceed 50% of potential savings
• Your case is straightforward with obvious errors
• You're comfortable with the DIY process
• The company has poor reviews or success rates below 60%

How Property Tax Protest Companies Work

The Typical Process

1. Free consultation - They review your assessment
2. Sign agreement - Usually contingency fee based
3. Evidence gathering - Company handles research
4. Filing appeal - They submit all paperwork
5. Representation - Attend hearings on your behalf
6. Fee collection - Only if successful (for contingency)

What They Actually Do

• Pull comparable sales data from MLS and public records
• Identify assessment errors and overvaluations
• Create professional presentation materials
• Handle all communication with tax assessor
• Represent you at informal and formal hearings
• File additional appeals if necessary

The Real Cost Breakdown

Contingency Fee Companies (Most Common)

• Typical fee: 25-50% of first-year savings
• No upfront cost
• Only pay if they win

Example: If they reduce your assessment by $50,000 and your tax rate is 2%, you save $1,000. At 40% contingency, you pay them $400, keeping $600.

Flat-Fee Companies

• Typical fee: $150-500 upfront
• Pay regardless of outcome
• Better for high-value properties

Example: $300 flat fee for appeal. If you save $2,000, you keep $1,700 (vs. $1,200 with 40% contingency).

Hybrid Models

• Small upfront fee ($50-150) plus
• Reduced contingency (15-25%)
• Covers company costs while sharing risk

Success Rates: What to Really Expect

Company claims vs. reality:

• Advertised: "95% success rate!" (misleading)
• Reality: 60-75% get some reduction
• Average reduction: 8-15% of assessed value
• Big wins: 20%+ reductions are rare (less than 10% of cases)

What "Success" Really Means

Companies often count any reduction as "success," even if it's minimal. A $100 reduction on a $500,000 home is technically a win, but hardly worth celebrating.

Major Property Tax Protest Companies Reviewed

O'Connor & Associates (Texas)

• Fee: 40% contingency
• Pros: Large firm, handles volume well
• Cons: Less personal attention, mixed reviews
• Best for: Standard residential properties in major Texas metros

Five Stone Tax Advisers (Texas)

• Fee: 40% contingency
• Pros: Good technology, easy signup
• Cons: Primarily Texas-focused
• Best for: Tech-savvy property owners

Ownwell (Multi-state)

• Fee: 35% contingency
• Pros: Modern platform, multi-state coverage
• Cons: Newer company, limited track record
• Best for: Out-of-state property owners

Local/Regional Firms

• Fee: Varies (25-50% contingency)
• Pros: Local expertise, relationships with assessors
• Cons: Quality varies significantly
• Best for: Complex cases needing local knowledge

Hidden Costs and Fine Print Warnings

Multi-Year Commitments

Some companies lock you into multi-year agreements. If they reduce your value this year, they may claim fees on the savings for 2-3 years, even without additional work.

"Success" Definitions

• Any reduction, no matter how small
• Preventing an increase (even if market-justified)
• Getting you into a hearing (regardless of outcome)

Additional Fees

• Filing fees (passed through to you)
• Evidence gathering surcharges
• Arbitration costs
• State-level appeal fees

Termination Penalties

Canceling mid-process may trigger fees. Read contracts carefully.

When Protest Companies Make Sense

High-Value Properties

If your home is assessed over $750,000, even a 5% reduction saves substantial money, making contingency fees worthwhile.

Multiple Properties

Landlords and investors benefit from bulk handling and expertise across property types.

Complex Cases

• Environmental issues (flood zones, contamination)
• Zoning disputes
• Commercial property components
• Historic designations

Time-Constrained Owners

If your time is worth more than the contingency fee, outsourcing makes sense.

When to Skip Protest Companies

Clear-Cut Cases

Obvious errors (wrong square footage, bedroom count) are easy DIY wins.

Small Potential Savings

If you might save $300, paying 40% ($120) for simple work isn't efficient.

You Enjoy the Process

Some homeowners find appeals interesting and educational.

Poor Company Reputation

Check BBB, Google Reviews, and state licensing before hiring.

Alternative Options Compared

DIY Appeal

• Cost: $0-50 (filing fees)
• Time: 6-10 hours
• Success rate: 40-60%
• Best for: Simple cases, motivated owners

Evidence-Only Services (Like AppealDesk)

• Cost: $49-199 flat fee
• Time: 1-2 hours (filing only)
• Success rate: 60-80%
• Best for: Owners wanting professional evidence without contingency fees

Tax Attorneys

• Cost: $250-500/hour
• Time: Minimal owner involvement
• Success rate: 70-85%
• Best for: Very high-value or complex cases

Property Tax Consultants

• Cost: 20-30% contingency or hourly
• Time: Minimal
• Success rate: 65-80%
• Best for: Commercial properties

How to Evaluate a Protest Company

Questions to Ask

1. "What's your actual success rate for properties like mine?" (Get specifics, not general claims)
2. "What's the average reduction percentage?" (Should be 8-15%)
3. "Are there any fees beyond the contingency?" (Get it in writing)
4. "How many years does your fee apply to?" (Beware multi-year commitments)
5. "Can I see sample evidence you've prepared?" (Quality varies wildly)
6. "Who will handle my case?" (Experience matters)

Red Flags

• Guaranteeing specific reductions
• Requiring payment upfront for contingency services
• No physical address or license information
• Pressuring immediate signature
• Unable to explain their process clearly

Green Flags

• Clear, written fee agreements
• Local office and hearings attendance
• References from similar properties
• Detailed explanation of strategy
• State licenses and insurance

The Math: When Contingency Fees Make Sense

Let's run the numbers for different scenarios:

Scenario 1: $400,000 Home

• Potential 10% reduction: $40,000
• Tax rate 2%: $800 annual savings
• 40% contingency fee: $320
• Your net savings: $480/year

Scenario 2: $800,000 Home

• Potential 10% reduction: $80,000
• Tax rate 2%: $1,600 annual savings
• 40% contingency fee: $640
• Your net savings: $960/year

Break-Even Analysis

At 40% contingency, you need at least $125 in annual savings to net $75 (making it worth the hassle). That requires a reduction of about $6,250 in assessed value at a 2% tax rate.

State-by-State Considerations

Texas

• Highest concentration of protest companies
• Very competitive market (good for consumers)
• Standard 40% contingency rate
• Annual reassessments make companies valuable

California

• Fewer protest companies due to Prop 13
• Focus on decline-in-value reviews
• Higher flat fees ($300-500)
• Less need for annual appeals

Florida

• Growing protest company market
• 35-45% contingency typical
• Value Adjustment Boards can be complex
• Companies valuable for out-of-state owners

New York

• Mix of contingency and flat-fee companies
• Complex municipal systems favor professionals
• Higher success rates with representation
• 25-35% contingency common

Making Your Decision: A Framework

Ask yourself these questions:

1. What's my potential savings? (Calculate: Overvaluation × Tax Rate)
2. How much is my time worth? (DIY takes 6-10 hours)
3. How complex is my case? (Simple errors vs. market analysis)
4. Am I comfortable in hearings? (Public speaking requirement)
5. What's my risk tolerance? (Contingency = no risk, flat fee = some risk)

Decision Matrix

• High value + Complex case + No time = Hire contingency company
• Medium value + Simple case + Some time = Use evidence service
• Low value + Clear errors + Have time = DIY appeal
• Very high value + Very complex = Hire tax attorney

The Bottom Line

Property tax protest companies can be worth it, but it depends entirely on your specific situation. For high-value properties with complex issues, their expertise and contingency model make sense. For straightforward residential appeals, you're often better off with DIY or flat-fee evidence services.

The key is understanding what you're paying for: time savings, expertise, and risk mitigation. If those are worth 40% of your potential savings, hire a company. If not, consider alternatives that give you professional results without the hefty contingency fees.

Frequently Asked Questions

Q: Can protest companies guarantee results?
A: No. Any company guaranteeing specific reductions is likely a scam. Legitimate companies work on contingency precisely because results aren't guaranteed.

Q: Will using a protest company red-flag my property?
A: No. Counties expect professional representation and don't penalize for it.

Q: Can I hire a company mid-process?
A: Usually yes, though some won't take cases after certain deadlines.

Q: Are online-only companies legitimate?
A: Many are, but verify they'll attend hearings in person if required in your jurisdiction.

Q: Should I use the same company every year?
A: Not necessarily. Shop around, as strategies and success rates vary.