How business personal property tax is calculated
The three numbers behind a business personal property tax bill, with a Texas and a Fairfax County example.
Summary
Our answer: every bill comes from three numbers: the value the local assessor puts on your equipment, minus any exemption, times the local tax rate. The value is the part you influence through your return, and it usually matters more than the rate. Fairfax County computes it mechanically from original cost: furniture at 80% of cost in the first year down to 20%, computers at 50% down to 2%, taxed at $4.57 per $100. Texas appraisal districts appraise market value from your rendition and, since 2026, remove the first $125,000 per location before the rate applies.
Tax = (assessed or appraised value of the property - exemption) x local rate. Fairfax: value = original cost x county percentage, rate $4.57 per $100. Texas: $125,000 exempt per location since 2026.
| Formula | (Value - exemption) x rateValue set by the assessor or appraisal district from your return. |
|---|---|
| Fairfax County value | Original cost x year percentageFurniture 80% to 20%; computers 50% to 2%. |
| Fairfax County rate | $4.57 per $100Business personal property other than machinery and tools. |
| Texas exemption | $125,000 of appraised value per locationSince January 1, 2026 (HB 9). |
| Texas rate | Sum of the local taxing units' ratesPublished by your county tax office; it differs by address. |
Our verdict
Spend your time on the asset list, not on the rate. A complete list with purchase years, original costs and disposals is what determines the value, and the value is what you can get right or wrong. Under an exemption threshold, the formula ends at zero.
Who this page is for, and who it is not for
For: small businesses that want to understand or check a bill before filing. Not for: anyone contesting an assessment (that is an appeal, outside our packet), manufacturers with machinery and tools schedules, and leased equipment.
Example 1: Fairfax County, mechanical schedules
A consulting firm in Fairfax County owns desks and chairs bought for $30,000, now in their third year, and laptops bought for $20,000, now in their second year.
| Category | Original cost | County percentage | Assessed value |
|---|---|---|---|
| Furniture and fixtures, year 3 | $30,000 | 60% | $18,000 |
| Computer equipment, year 2 | $20,000 | 35% | $7,000 |
| Total | $50,000 | $25,000 | |
| Tax at $4.57 per $100 | $1,142.50 |
Fairfax County: furniture 80%, 70%, 60%, 50%, 40%, 30%, 20% minimum; computers 50%, 35%, 20%, 10%, 2% minimum.
Example 2: Texas, appraisal and the $125,000 exemption
A dental office in Texas renders equipment, furniture and computers, and the appraisal district values them at $310,000 at one location. The first $125,000 is exempt since 2026, leaving $185,000 taxable. At an illustrative combined rate of 2% (your county tax office publishes the real rates of each taxing unit), the bill is about $3,700. A design studio whose equipment is worth $40,000 files the one-time certification and pays nothing on it.
| Business | Appraised value | After $125,000 exemption | Tax at 2% |
|---|---|---|---|
| Dental office | $310,000 | $185,000 | about $3,700 |
| Design studio | $40,000 | $0 | $0 (certification only) |
Oregon and other states
Oregon assessors value the property from your OR-CPPR using Department of Revenue valuation methods, then apply local rates; accounts below the annual cancellation threshold get no bill but still file. Other states have their own exemptions and filing triggers; see our state table.
Next steps
Common questions
How do I estimate my business personal property tax?
Add up the value your county will use (in Fairfax, original cost times the county percentage for each purchase year; in Texas, market value), subtract the exemption that applies, and multiply by the local rate. For Fairfax County: $25,000 of assessed value x $4.57 per $100 = $1,142.50.
Is the rate or the value more important?
The value, in most cases. Rates are fixed by local taxing units and are the same for everyone at your address; the value depends on what you report, how you categorize it and which items you leave off after disposal.
Does federal depreciation reduce the value?
Not directly. Fairfax uses original capitalized cost and its own percentages, including for items expensed under Section 179. Oregon's 2026 return lists expensed and fully depreciated items as still taxable.
Does Business Property Desk calculate my tax bill?
No. It prepares the return packet for Texas, Fairfax County and Multnomah renewals, with a Fairfax value estimate for furniture and computer equipment. The assessor sets the value and the tax office sends the bill.
Build the asset list the formula starts from
Free template: item, purchase year, original cost, category and location. In Texas, Fairfax County and Multnomah renewals, the $79 packet turns it into the return.
Open checkerRelated 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
Last reviewed: .