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.
Summary
Our answer: if your business equipment, furniture, computers and inventory at one Texas location are worth $125,000 or less, do not pay anyone to prepare a rendition, us included. Since January 1, 2026, Tax Code Section 11.145 exempts $125,000 of appraised value per location, and Section 22.01(j-1) lets you skip the rendition: file Form 50-144 once with the "$125,000 or less" certification by April 15, and the election stays in effect until the business changes ownership. Above $125,000 you still render everything by April 15; the appraisal district subtracts the exemption itself.
$125,000 of business personal property per Texas location is exempt since January 1, 2026; at or under it, a one-time certification replaces the rendition.
| Exemption | $125,000 of appraised value per locationTax Code Section 11.145(b) as amended by HB 9 (89th Legislature, 2025); previously property under $2,500 was exempt. |
|---|---|
| In force | January 1, 2026Contingent on the constitutional amendment approved by voters as Proposition 9 on November 4, 2025. |
| At or under $125,000 | One-time certification on Form 50-144Section 5 checkbox; the election continues until ownership changes (Section 22.01(j-3)). |
| Above $125,000 | Full rendition by April 15May 15 on written request; 10% penalty on the year's taxes if late. |
| Same address, related businesses | One shared $125,000Related business entities at one physical address are aggregated (Section 11.145(f)). |
| Leased-out property | Separate $125,000 per taxing unitSection 11.145(d); outside Business Property Desk scope. |
Our verdict in one table
Location worth $125,000 or less, ordinary owned assets: file the Form 50-144 certification yourself, once, for free. Location above $125,000, one site, ordinary owned assets: render by April 15; this is the case Business Property Desk prepares for $79. Several locations, related businesses at one address, leased-out equipment, freeport inventory or a dispute with the district: use the appraisal district or a property tax consultant, because the exemption math changes.
What HB 9 changed
Before 2026, Texas exempted income-producing personal property only when the whole account was worth less than $2,500, so almost every business with a few computers had to render. HB 9 (89th Legislature, 2025) rewrote Tax Code Section 11.145: each location in a taxing unit now gets a $125,000 exemption of appraised value, with property at that location aggregated. It took effect January 1, 2026, after voters approved the constitutional amendment on November 4, 2025 (Proposition 9).
What you still file at or under $125,000
Section 22.01(j-1) says you are required to render only if, in your opinion, the aggregate market value at the location is more than the exemption. Section 22.01(j-3) adds a condition: to elect not to render, you file a rendition statement or property report with a certification that you reasonably believe the value is not more than $125,000. The Comptroller's current Form 50-144 carries that certification in Section 5. Fill Sections 1 and 2, answer the related-business-entity question, check "$125,000 or less" and the certification box, sign Section 6, and send it to your appraisal district by April 15.
Once, not every year
The certified Form 50-144 is your filing for the year you send it. Section 22.01(j-3) then makes the election effective beginning with the following tax year and keeps it in effect until the ownership of the business changes. You file again if the chief appraiser asks for a rendition, if the business is sold, or if new purchases push the location above $125,000. Re-run the test each January with your asset list; that is the only annual task left for most small offices.
Example: a design studio and a restaurant
An Austin design studio owns six laptops bought for $9,000 and desks and chairs bought for $12,000; good-faith value on January 1, 2027 is about $10,500. It certifies once and pays nothing on that property. A restaurant in the same county has a kitchen line bought for $160,000 and dining furniture for $42,000, worth about $149,000 together. It must render everything by April 15; the district then taxes $24,000 after the exemption.
When the verdict changes
Related business entities at the same physical address share one $125,000 (Section 11.145(f)), so two companies run from one office cannot each claim it. Property you lease to others gets its own $125,000 per taxing unit (Section 11.145(d)). Inventory that swings around the threshold on January 1 deserves a careful count. A false certification is a Penal Code Section 37.10 offense, so when you are close to $125,000 and unsure, render.
Next steps
Common questions
Do I still have to file anything if my Texas business property is under $125,000?
Yes, once. To use the election not to render, you file a rendition statement or property report that certifies you reasonably believe the value is $125,000 or less. On the current Form 50-144 that is the Section 5 checkbox. Dallas CAD asks for it by April 15. After that, Section 22.01(j-3) makes the election effective from the following tax year until the business changes ownership; the chief appraiser can still require a rendition, and you render again if your value goes above $125,000.
How much business personal property tax will I pay in Texas?
At or under $125,000 per location: nothing on that property. Above it, tax applies to the appraised value minus $125,000, multiplied by the combined rate of the taxing units at that location. Example: $149,000 appraised leaves $24,000 taxable; at an illustrative combined rate of 2%, that is about $480 a year. Your real rates come from your county tax office.
Is the $125,000 based on what I paid or what the assets are worth?
The rendition test in Section 22.01(j-1) is the aggregate market value in your opinion, and the exemption applies to appraised value. Original cost is not the test, but a laptop bought for $1,600 three years ago is worth less than $1,600, so cost is a safe upper bound. Business Property Desk asks for a good-faith value for every asset and does not decide the test from cost alone.
Do I apply for the exemption?
No application is needed for the $125,000 exemption itself: Dallas CAD says it applies the exemption automatically. What you file is either the certification (at or under $125,000) or the full rendition (above it).
I have two shops in different cities. Is it $125,000 total?
No. Section 11.145(c) applies the exemption to each separate location in a taxing unit. Two locations means two tests. Business Property Desk only handles one location, so a two-location business should use the appraisal district instructions or a consultant.
Is it worth paying a CPA or Business Property Desk for the certification?
No. The certification is a checkbox and a signature on a free official form. We do not charge for it: the wizard ends on a free summary and never opens checkout for a Texas location at or under $125,000.
Test my location in the free wizard
Enter your assets and good-faith values. At or under $125,000 the wizard ends on the free certification steps and never opens checkout.
Open checkerRelated guides
Which states tax business personal property? 2026 map
A dated table of states we checked against official sources: whether business equipment is taxed, the small-business threshold, the form and the deadline, and what Business Property Desk covers.
What is business personal property tax?
A practical explanation for small businesses preparing a simple asset-register packet.
Texas Form 50-144 business personal property rendition
The core fields to collect for a simple Texas business personal property rendition packet, and when the $125,000 certification replaces the full rendition.
Official sources for this guide
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