If you own a business, you may be taxed on more than just real estate. Tangible assets such as furniture, equipment, electronics, vehicles, and inventory may need to be reported annually — though a major 2026 exemption change means many small businesses may now owe nothing at all.
In Texas, business personal property tax (often called BPP) generally applies to tangible property used to produce income. It may be taxable whether you own the building, lease space, operate from a warehouse, or manage equipment across multiple locations.
What's new for 2026: Texas voters approved Proposition 9 in November 2025, raising the BPP exemption from just $2,500 to $125,000 — effective for the 2026 tax year. Many businesses that used to owe BPP tax may now owe nothing at all, but you still must file the correct paperwork by the deadline to claim it.
Texas raised the business personal property exemption from $2,500 to $125,000 per location, effective January 1, 2026. Businesses with BPP valued under $125,000 at a given location may not owe any BPP tax at all — but you must still file the correct rendition or exemption statement to claim it.
The $125,000 exemption generally applies separately to each location within a taxing unit — businesses with multiple locations may be able to claim it more than once.
If your BPP value at a location is under $125,000, a full rendition is not required — but you must still file a statement to claim the exemption.
If multiple related businesses operate as a "unified business enterprise" at the same location, their property values are combined for the exemption threshold.
Renditions and exemption statements are due April 15, 2026. Missing the deadline risks losing the exemption and facing a 10% penalty.
Desks, chairs, shelving units, display cases, workstations, and other fixtures used in daily business operations.
Laptops, servers, copiers, phone systems, POS terminals, and other technology assets that may depreciate quickly.
Raw materials, work in progress, finished goods awaiting sale, inventory held for business use, and inventory held on consignment.
Company vehicles, delivery trucks, machinery, tools, and equipment used to produce income may need to be reviewed for BPP reporting.
January 1: Tax liability depends on what business personal property you own, control, or use and where it is located as of this date each tax year.
April 15: BPP renditions and exemption statements — including claims for the new $125,000 exemption — are due to your local appraisal district (CAD).
Review our Texas property tax deadlines guide for broader timing considerations, and see how the parallel homeowner exemption increase works in our Texas Proposition 13 explainer.
Texas Proposition 9 (HB 9) raised the business personal property exemption from $2,500 to $125,000, effective for the 2026 tax year. Businesses with BPP valued under $125,000 at a location may owe no BPP tax, but must still file the correct exemption paperwork.
You don't need a full rendition, but you must still file a statement with your county appraisal district certifying your reasonable belief that the property's value is under the exemption threshold. The chief appraiser can still request a full rendition if needed.
The standard deadline is April 15 each year. Missing it can result in a 10% penalty and potential loss of the new $125,000 exemption for that tax year.
Generally once per location within a taxing unit. Businesses with multiple locations in the same county or school district may be able to claim the exemption separately at each qualifying location.
Yes. The exemption reduces your taxable value by a fixed amount, but if your BPP is valued above $125,000, the remaining taxable value can still be over-appraised. A property tax protest can address that separately.
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