Section 25.25(d): Correcting an Overvalued Property After the Deadline

What Is a 25.25(d) Motion?

Section 25.25(d) of the Texas Tax Code lets a property owner file a motion with the Appraisal Review Board to correct an error that resulted in an incorrect appraised value. The motion must be filed before the taxes become delinquent. Taxes become delinquent on February 1, so the last day to file is January 31 of the following year.

Example: for the 2026 tax year, the deadline to file is January 31, 2027. February 1 is too late.

In practice, that means 25.25(d) reaches back one year: the tax year that just ended.

How Overvalued the Property Has to Be

The value can only be corrected if it exceeds the correct value by more than:

• One-third for property that isn’t your residence homestead, including all commercial property
• One-fourth for a residence homestead

The threshold is measured against the correct value, so the case still has to prove what the correct value is. The evidence is the same as a market value appeal: sales, income, and condition.

When 25.25(d) Isn’t Available

• The year was already protested. If you, or an agent for you, protested that year’s value, 25.25(d) is closed for that year, even if the result was disappointing.
• The value was settled in writing. A written agreement with the district on that year’s value closes it as well.
• The taxes are delinquent. The motion must be filed before the delinquency date, and taxes must stay current while it’s pending.

The 10% Late-Correction Penalty

If the value is corrected, the owner must pay each taxing unit a penalty equal to 10% of the taxes calculated on the corrected value. The penalty is secured by the same lien as the taxes.

Illustration only. Assumes a 2.2% combined tax rate.

	Value	Taxes
District’s value	$13,000,000	$286,000
Corrected value	$9,000,000	$198,000
Tax savings		$88,000
Late-correction penalty (10% of $198,000)		($19,800)
Net savings		$68,200

The larger the overvaluation, the more easily the savings cover the penalty. We run this math before we recommend filing.

When a 25.25(d) Motion Is Worth Filing

• No protest was filed for the year, and the value is clearly and provably excessive
• The district’s records are wrong in a way that drives the value: building size, class, use, or condition
• The property lost income or occupancy that the district’s model didn’t reflect
• Damage, environmental problems, or easements the district didn’t account for

It isn’t a substitute for a timely protest. The protest has no threshold and no penalty. If you’re reading this after a missed deadline, sign up now so next year’s protest is filed on time.

How We Handle a 25.25(d) Motion

We handle 25.25(d) motions for every property type we serve, commercial and residential.

1. Check eligibility. We confirm the year wasn’t protested or settled and that taxes are current.
2. Build the value. We prepare our opinion of the correct value.
3. Run the threshold and the penalty math. We only recommend filing when the case clears the threshold with room to spare and the savings justify the penalty.
4. File the motion and present at the hearing. 25.25(d) hearings follow the same procedures as a protest hearing before the ARB.

Other Corrections Under Section 25.25

Some errors can be corrected without meeting the 25.25(d) threshold. Section 25.25(c) allows corrections for clerical errors, property that was appraised more than once, and property that doesn’t exist in the form or at the location described, for up to five prior years. Section 25.25(c-1) allows corrections to business personal property values caused by an error in a rendition, for the current year and the two before it.

This guide is general information about the Texas Property Tax Code, not legal advice. Deadlines and rules can change with each legislative session.