Texas’s New $125,000 Business Personal Property Exemption: Do You Still Have to File a Rendition?

Texas’s new $125,000 business personal property exemption can lower the tax bill for a small business. It doesn’t automatically end every filing duty, though. A Dallas property tax lawyer can help you understand whether you must submit a rendition or can elect to stop filing in future years.

A rendition reports business property to the local appraisal district. The answer depends on your property’s value and whether you’ve completed the filing needed to make the new election. Your records should generally show what you owned on January 1 of the tax year.

What does the new exemption cover?

Starting January 1, 2026, Texas Tax Code Section 11.145 exempts $125,000 of the appraised value of qualifying income-producing tangible personal property. That generally includes physical assets you own and use in your business, such as equipment and furniture. Inventory can also qualify.

The exemption generally applies separately at each business location within a taxing unit. A taxing unit is a local government that imposes property taxes, such as a city or school district. The exemption doesn’t cover land or buildings.

For a business covered by the usual rule, property appraised at $175,000 could leave $50,000 taxable after this exemption. The tax savings depend on the rates that apply.

Do you still need to file at $125,000 or less?

You still need a filing to elect out of future renditions. Under Tax Code Section 22.01(j-3), qualifying owners must file a rendition statement or property report certifying that they reasonably believe the relevant property’s market value is $125,000 or less.

The election starts the tax year after the filing year. For example, a timely certification filed in 2026 supports an election beginning in 2027. Dallas Central Appraisal District’s rendition form includes a section for this certification, while the exemption itself is applied automatically without a separate application.

When can annual renditions be required again?

The election continues until ownership changes, but the chief appraiser can still require a rendition. Filing is also required again if the relevant property’s market value exceeds the applicable exemption amount.

If you must render under the new threshold rules, report all income-producing tangible personal property you own that has taxable situs in the appraisal district. Taxable situs means the property is located or used there in a way that makes it taxable there. Property exempt under another law is excluded from this requirement.

How do related businesses and leased property affect the rules?

Related entities operating as a unified business enterprise at the same physical address must combine their qualifying property when applying the exemption. Setting up separate entities doesn’t automatically give each one its own $125,000 exemption at that address.

Special rules also apply when you lease your property to others or keep it at locations you don’t own or lease. In those situations, the $125,000 exemption generally applies to the combined property value within each taxing unit. A Dallas property tax lawyer can help you determine how those rules affect your exemption and reporting duties.

What is the filing deadline?

The usual deadline for business personal property renditions is April 15. A timely written extension request moves that deadline to May 15. The filing goes to the local appraisal district.

The ordinary 2026 deadline has already passed. If you missed it, review your filing options promptly and respond to any appraisal district notices. Late filing of a required rendition can lead to a penalty equal to 10% of the taxes imposed on the property for that year.

How can Coleman Jackson, P.C. help?

Before deciding you can stop filing, review your property records and the certification you submitted. Keep support for your market value estimate, especially if your property is close to the threshold. The amount you originally paid doesn’t always reflect what the property is worth today. Fully depreciated equipment can still have market value. Include it when estimating the property’s worth.

Coleman Jackson, P.C. counsels businesses on property tax obligations and available exemptions. Call (214) 599-0431 or reach out online to speak with a Dallas property tax lawyer about your rendition requirements and how the $125,000 exemption applies to your business.

This law blog is written by attorneys at Coleman Jackson, P.C., which is located at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206 for educational purposes; it does not create an attorney-client relationship between this law firm and its reader. You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

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