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Business personal property tax exemptions by state

Small-business exemptions compared from official sources, with the filing each state still asks for.

By Yann LephayPublished · Last updated

Summary

Our answer: under the threshold you usually owe no tax, but you usually still file something, at least once. Texas exempts $125,000 per location and replaces the rendition with a one-time certification. Florida exempts up to $25,000 of assessed value for owners who file an initial DR-405 by April 1. Georgia exempts $20,000 per county from 2025, and Gwinnett County still asks for the return. Indiana exempts business personal property under $2,000,000 of acquisition cost per county from the 2026 assessment date, and Arizona raised its exemption to $500,000 from January 1, 2026. Skipping the filing is how a small business ends up with an estimated assessment or a penalty.

Thresholds remove the tax, not the filing: Texas certification once, Florida initial DR-405, Oregon short return each year, Gwinnett County return each year.

IndianaUnder $2,000,000 of acquisition cost per county2026 assessment date and after (Ind. Code 6-1.1-3-7.2, DLGF memo of May 23, 2025).
Arizona$500,000From January 1, 2026 (Laws 2025, ch. 247, SB 1749).
Texas$125,000 of appraised value per locationSince January 1, 2026 (HB 9).
FloridaUp to $25,000 of assessed valueInitial DR-405 by April 1 required to receive it.
Georgia$20,000 per countyRaised from $7,500 by HB 808, effective January 1, 2025; applied by Gwinnett County.

Our verdict

Look up the threshold, compare it with what your equipment is worth or cost (each state measures differently), and if you are under it, file the one form that records the exemption and stop there. Paying someone to file under the threshold is money you do not need to spend.

Who this page is for, and who it is not for

For: small businesses with ordinary equipment that suspect they are under their state's exemption. Not for: manufacturers, leasing companies, freeport inventory, pollution-control or enterprise-zone exemptions, which have their own applications and deadlines.

Exemptions compared

Thresholds are measured differently: appraised value per location in Texas, assessed value in Florida, value per county in Georgia, acquisition cost per county in Indiana.

Small-business exemptions checked October 27, 2026
StateExemptionMeasured onWhat you still file
IndianaExempt under $2,000,000Total acquisition cost per county, 2026 assessment date onAsk your county assessor how to claim it; not detailed in the state memo
Arizona$500,000Business personal property, from Jan. 1, 2026Not verified
Texas$125,000Appraised value per locationForm 50-144 with the Section 5 certification by April 15, once
FloridaUp to $25,000Assessed valueInitial DR-405 by April 1; later years may be waived at $25,000 or less
Georgia$20,000Value of property per county (from Jan. 1, 2025)Gwinnett County: a return each year between Jan. 1 and April 1
OregonCancellation below an annual thresholdTotal assessed value in the countyShort OR-CPPR each year by March 15
CaliforniaNo statewide threshold; each county may exempt low-value personal property up to $10,000 of full value (R&TC 155.20)Full value, county by countyBOE-571-L when aggregate cost is $100,000 or more, or on the assessor's request (a filing trigger, not an exemption)

Not listed: Michigan (small business exemption, Form 5076) because the Treasury pages returned an access error on October 27, 2026; Colorado and Maryland for the same reason.

Example: three small offices, three answers

A design studio with $40,000 of computers and furniture in Austin, Texas files the Form 50-144 certification once and owes nothing on that property. The same studio in Tampa, Florida files a DR-405 by April 1 to receive the $25,000 exemption and pays tax on the assessed value above it. In Fort Wayne, Indiana, with $40,000 of acquisition cost, it is under the $2,000,000 threshold and asks the county assessor how to record the exemption.

Where Business Property Desk fits

In Texas, the wizard checks the $125,000 test and stops for free under it. Above it, and in Fairfax County or for Multnomah renewals, the $79 packet prepares the return. We do not prepare exemption applications or returns in other states.

Next steps

Which states tax business personal property

The 2026 table, including states with no tax.

Texas $125,000 exemption

Certification, related entities and leased property.

Business personal property tax basics

What counts as business personal property.

Common questions

If I am under the exemption, do I still need to file?

Usually yes, at least once. Texas asks for a certification on Form 50-144 (then the election continues until ownership changes), Florida requires an initial DR-405 to grant the $25,000 exemption, Oregon asks owners below its cancellation threshold to file a short return each year, and Gwinnett County (Georgia) says property under $20,000 must still be returned.

Is the Florida $25,000 exemption automatic?

No. Florida's Department of Revenue says all tangible personal property taxpayers must file an initial return to receive it. Owners whose prior return showed $25,000 or less may be waived from filing later years. Not filing costs 25% of the tax; filing late, 5% per month up to 25%.

What changed in Indiana?

SEA 1 and HEA 1427 (2025) raised the exemption from $80,000 to $2,000,000 of total acquisition cost per county, starting with the 2026 assessment date. The temporary $1,000,000 level for 2025 was repealed.

Does Business Property Desk claim exemptions for me?

No. In Texas it tells you, for free, when the $125,000 certification is enough. It does not file exemption applications in any state.

Texas owner? Test your location free

At or under $125,000 the wizard ends on the free certification steps and never opens checkout; above it, the $79 packet prepares the rendition.

Open checker

Related guides

What is business personal property tax?

A practical explanation for small businesses preparing a simple asset-register packet.

Texas business personal property exemption: $125,000 per location since 2026

What the HB 9 exemption changes for a small Texas business, what you still file by April 15, and when a full rendition is still required.

Business personal property asset register template

Template columns and example rows for a simple local business personal property packet.

Official sources for this guide

Texas HB 9 (89th Legislature, 2025), enrolled textAmends Tax Code Section 11.145 ($125,000 exemption per location) and Section 22.01(j-1)-(j-3) (election not to render with a certification); effective January 1, 2026 after voter approval of the constitutional amendment (Proposition 9, November 4, 2025). Reviewed October 27, 2026.Dallas Central Appraisal District 2026 BPP rendition noticeAppraisal-district reading of HB 9: render by April 15 only above $125,000; at or under it, file a statement with the certification by April 15 to elect not to render. Reviewed October 27, 2026.Florida Department of Revenue: tangible personal propertyDR-405 to the property appraiser by April 1; up to $25,000 exemption with an initial return; penalties 5% per month up to 25%, 25% for not filing, 15% for omitted property. Reviewed October 27, 2026.Georgia DOR: 2024 summary of enacted legislation (HB 808)Raises the O.C.G.A. 48-5-42.1 tangible personal property exemption from $7,500 to $20,000, effective January 1, 2025. Reviewed October 27, 2026.Gwinnett County Assessor: personal property$20,000 or less automatically exempt; personal property return each year between January 1 and April 1; 10% penalty. Reviewed October 27, 2026.Indiana DLGF memo, May 23, 2025 (SEA 1 and HEA 1427)Business personal property exempt when total acquisition cost in a county is under $2,000,000 for the 2026 assessment date and after ($80,000 before). Reviewed October 27, 2026.Arizona Legislature: SB 1749 (2025), signed, chapter 247Increases the business personal property tax exemption to $500,000 effective January 1, 2026. Reviewed October 27, 2026.OAR 150-308-0410, cancellation of personal property assessmentsAssessor cancels accounts below the annual threshold; the taxpayer keeps filing each year; DOR notifies the threshold by March 1. Reviewed October 27, 2026.California BOE-571-L sample (Rev. 32, 07-25)2026 form: file by April 1; statement required at $100,000 aggregate cost or on request; 10% penalty (R&TC 463). Reviewed October 27, 2026.California BOE: low-value property exemptionEach county board of supervisors may exempt personal property with a full value of up to $10,000 (Constitution art. XIII sec. 7, R&TC 155.20). Reviewed October 27, 2026.

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