Texas Agricultural Property Tax Exemption Explained

Reducing Property Taxes Texas Agricultural Property Tax Exemption Explained

Apply for Your Texas Agricultural Property Tax Exemption Hassle-Free

If you have agricultural land in Texas, you might be eligible for a Texas agricultural property tax exemption. 

We offer information related to property tax assessments, appeals, and exemptions for all groups, including seniors

DoNotPay can present a helpful way to reduce your property taxes and pay them without a hitch.

Are Agricultural Property Taxes High in Texas?

According to the data from DTN/Progressive Farmer for 2017, Texas is the U.S. state with the second-highest property taxes amounting to $698.2 million. 

Considering that the total number of farmers was 236,030 at the time, the average Texas property tax was $2,958 per farm. These numbers show Texas property taxes rose 20.6% during the 2012–2017 period.

Property Taxes in Texas

The Texas Constitution uses these five rules for property taxes:

RuleExplanation

Taxation has to be equal and uniform

Every property should pay its fair share. The value of your property is the basis of the property taxes you pay

Properties need to be taxed based on their current market value

The current market value is the price your property would sell for.

Exceptions to this rule include the use of productivity values for agricultural and timberland property that is taxed based on the value of what the land produces (livestock and crops) and not its sale value

Every property in a county has to have a single appraised value

Different local governments you pay property taxes to cannot use different values 

All properties are taxable unless federal or state law exempts them from taxes

All or only a part of your property’s values can be exempt from property taxes

Reasonable increase notice is guaranteed 

You have the right to receive notice of any increases in the appraised value of your property

DoNotPay can help you with lowering your property tax in Texas or elsewhere. Are you thinking of purchasing a property in another U.S. state? You can take a look at our list of states with low property taxes.

Do You Qualify for a Texas Agricultural Property Tax Exemption?

The Constitution and Property Code provide for open-space land appraisal. The 1-d-1 appraisal is a method that does not use the market value or capitalization rate mostly applied to commercial, residential, and other properties. This method is also known as Ag Exemption or Agricultural Exemption.

The Constitution allows two types of agricultural productivity appraisals, 1-d-1 and 1-d. Texas farmers and ranchers can get property tax relief on their land using these special appraisal methods.

1-d-1 Appraisal Method

Land in Texas is eligible for this 1-d-1 appraisal method if it has been used:

  • For and devoted to agricultural use for at least five of the previous seven years 
  • To protect endangered species listed on the federal ESA list
  • For restitution or conservation projects under federal or state statutes
  • For agriculture to the intensity degree accepted in that area

Most Texas landowners apply for this kind of appraisal.

1-d Appraisal Method

Your land qualifies for the 1-d appraisal method if it has been used for agricultural purposes or developed for agriculture for three successive years of the preceding five years. The owner has to:

  • Be an individual (versus a partnership, agency, or corporation)
  • Use this land as his/her primary source of income

Be careful not to miss the strict deadline for productivity appraisal. If your land qualifies for the 1-d appraisal, you need to apply every year.

Farmers and ranchers in Texas can get the special appraisal even if they use their land for wildlife management. To be used for this purpose, this land:

  • Had to qualify for agricultural use in the preceding year
  • Has to meet certain acreage size and special use criteria

DoNotPay can help you apply for land appraisals without any problems. 

Why Do You Need an Ag/Timber Registration Number?

You qualify for tax exemption on the purchase of some items that are used to produce your agricultural and timber goods for sale if you are a rancher, farmer, or timber producer dealing with the following:

  • Beekeeping
  • Crop dusting
  • Feedlot operation
  • Timber production
  • Custom harvesting
  • Fiber crops production for sale
  • Operating commercial fish farms 
  • Future Farmers of America or 4-H
  • Teaching agricultural vocational courses
  • Veterinary businesses making ranch and farm calls
  • Growing plants for sale within commercial nurseries
  • Farming or ranching to raise and grow agricultural products for sale

You need to have a valid agricultural and timber registration number—the Ag/Timber Number—if you want to claim a tax exemption. 

Receive Texas Agricultural Property Tax Exemptions With DoNotPay’s Help 

DoNotPay collects all relevant Texas agriculture property tax data to help you apply for special appraisal methods and reduce your agricultural property tax bills.

Here is what you should do:

  1. Sign up for DoNotPay in a web browser
  2. Select the Property Tax feature
  3. Answer a few questions about you and your agricultural property

Our app will generate a customized guide to agricultural property tax exemptions. We will present step-by-step instructions you can easily understand and follow.

If you decide to appeal your previous property tax bills, we can assist in the same way. All you need to do is follow the above-listed steps and check the Appeal section in your tailored guide.

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