Glenn Hegar

Texas Comptroller of Public Accounts

Texas Property
Tax Exemptions
Complete and Partial Property
Tax Code Exemptions Available to
Property Owners Who Qualify

February 2018
Tax Code Section 5.05(a) authorizes the Comptroller’s office to prepare and issue publications relating to the appraisal of
property and the administration of taxes as a public service. By publishing this manual, the Comptroller’s office is mak-
ing available an information resource of a general nature regarding the appraisal of property and the administration of
taxes. This publication does not address and is not intended to address all aspects of property appraisal, tax administra-
tion or property tax law. The information contained in this publication neither constitutes nor serves as a substitute for
legal advice. Pursuant to Tax Code Section 5.041(f), the Comptroller’s office may not advise a property owner, a property
owner’s agent or the appraisal district on a protest matter. Questions regarding property appraisal, tax administration, the
meaning or interpretation of statutes, legal requirements and other similar matters should, as appropriate or necessary,
be directed to an attorney or other appropriate counsel.
Texas Property Tax

Table of Contents
Property Tax Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Exemption Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Owner’s Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Property’s Qualifications and Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Chief Appraiser Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Types of Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Residence Homestead
(Tax Code Section 11.13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Veterans’ Exemptions (Tax Code Sections 11.131, 11.132, 11.133, 11.22 and 11.23(a)) . . . . . . . 5
Surviving Spouse of First Responder (Tax Code Section 11.134) . . . . . . . . . . . . . . . . . . . 6
Charitable Organizations Generally (Tax Code Section 11.18) . . . . . . . . . . . . . . . . . . . . 6
Community Land Trusts (Tax Code Section 11.1827) . . . . . . . . . . . . . . . . . . . . . . . . . 6
Primarily Charitable Organizations (Tax Code Section 11.184) . . . . . . . . . . . . . . . . . . . . 6
Religious Organizations (Tax Code Section 11.20) . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Private Schools (Tax Code Section 11.21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Public Property (Tax Code Section 11.11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Appendix A – Tax Code Exemption General Application Provisions . . . . . . . . . . . . . . . . . 9

Appendix B – Other Property Tax Code Exemption Summaries . . . . . . . . . . . . . . . . . . 11

Appendix C – Residence Homestead Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Property Tax Exemptions

Texas Property Tax

Property Tax Exemptions

Texas Property Tax

Property Tax Exemptions

Property tax in Texas is a locally assessed and locally ad- Some exemptions require the property owner to file an ap-
ministered tax. There is no state property tax. Property tax plication one time and others require the property owner to
brings in the most money of all taxes available to local taxing file an application annually. Most one-time exemptions al-
units. Property taxes pay for schools, roads, police and fire- low the chief appraiser to request a new application to verify
men, emergency response services, libraries, parks, and other that a property or property owner remains eligible for the ex-
services provided by local government. State law provides for emption . Appendix A is a chart outlining which Tax Code
a variety of exemptions from property tax for property and exemptions:
property owners that qualify for the exemption.
• require no application;
Texas offers a variety of partial or total (absolute) exemp- • require an annual application; or
tions from property appraised values used to determine local • require a one-time application, unless requested by the
property taxes. A partial exemption removes a percentage or chief appraiser.
a fixed dollar amount of a property’s value from taxation. A
total (absolute) exemption excludes the entire property from Appraisal district chief appraisers are responsible for deter-
taxation. Taxing units are mandated by the state to offer cer- mining whether or not property qualifies for an exemption.5
tain (mandatory) exemptions and have the option to decide Property owners may appeal the chief appraiser’s exemp-
locally on whether or not to offer others . tion determinations, including the denial of an exemption.6
Taxing units, on the other hand, may appeal the granting of
an exemption to a property owner .7 An individual property
Exemption Applications owner may not, however, challenge the grant of an exemption
The law requires the property owner to apply for an exemp- to another property owner. Only a taxing unit may challenge
tion in most circumstances .1 If a property owner fails to file the granting of an exemption.8 Property is taxable unless the
a required application on time, the owner usually forfeits the owner shows that it meets all legal requirements for a total
right to the exemption unless late application provisions exist exemption .9
in law .2
Exemption applications ask for most or all of the information
The general deadline for filing an exemption application is needed to decide an exemption issue. Most exemption cases
before May 1.3 Charitable organizations improving property will depend on one or more of the following three issues: (1)
for low-income housing and community housing develop- the owner’s eligibility; (2) the property’s qualifications; or (3)
ment associations must file the application for exemption the property’s use .
within 30 days of acquiring the property.4

1
Tex. Tax Code § 11.43(a) 5
Tex. Tax Code § 11.45
2
Tex. Tax Code §§ 11.43(d), 11.431, 11.433, 11.435, 11.438, 11.439 and 6
Tex. Tax Code § 41.41
11.4391 7
Tex. Tax Code § 41.03
3
Tex. Tax Code § 11.43(d) 8
Tex. Tax Code § 41.03
4
Tex. Tax Code § 11.436 9
Tex. Tax Code § 11.01(a)

Property Tax Exemptions — 1

Owner’s Qualifications Acquisition Date
When the state, a political subdivision of the state and other
Ownership requirements vary by exemption. Exemptions,
qualifying organizations acquire property used for public
such as those for individuals or families (homestead or dis-
purposes, the chief appraiser determines the property’s ex-
abled veterans’ exemptions), may require evidence of age,
emption qualifications as of the acquisition date.14
physical condition or disability, military service, family rela-
tionship or other factors .
Property’s Qualifications and Use
The date for determining most exemption qualifications is Many exemptions apply only to specific classes of property.
Jan. 1, but there are some exceptions. Certain exemptions are The property owner must list all property subject to the ex-
determined immediately upon a change in life of the prop- emption and demonstrate that each property meets exemp-
erty owner or by the chief appraiser on a property’s acquisi- tion requirements.
tion date .10
How and when the property owner uses the property is often
January 1 critical in determining exemption cases. An important factor
The date for determining owner qualifications for general is whether a property’s use is exclusive, primary or incidental.
homestead exemptions is Jan. 1. Property receiving exemp-
tions for freeport, abatement, pollution control, historic or
archeological site, solar- and wind-powered energy devices,
Chief Appraiser Determinations
offshore drilling rigs, water conservation initiatives and dis- The chief appraiser is responsible for (1) granting an exemp-
abled veterans must qualify on Jan. 1.11 tion application; (2) disapproving an exemption application
and asking for more information; (3) modifying an exemp-
Immediate tion application; or (4) denying an exemption application. A
Homeowners who reach age 65 or who become disabled dur- property owner is entitled to a written notice of a modifica-
ing a tax year, will qualify immediately for those exemptions, tion or the denial of an exemption application and may pro-
as if the homeowner qualified on Jan. 1 of the tax year. In test such before an appraisal review board (ARB), if a protest
addition, a surviving spouse age 55 or older may qualify for to the ARB is timely filed.15
the deceased spouse’s exemption, if the spouse dies in the
year that he or she reaches age 65. Disabled veterans or their A chief appraiser may deny an application for any number of
surviving spouses with homes donated by charitable organi- reasons. Denial of an exemption application can be because,
zations, surviving spouses of U.S. armed services members but not limited to, any of the following reasons:
killed in action and surviving spouses of first responders
• Property owner is not entitled to the exemption;
killed or fatally injured in the line of duty also qualify im-
• The property does not qualify for an exemption;
mediately for those exemptions, as if they qualified on Jan. 1
• Documentation filed with an exemption application does
of the tax year .12
not support the exemption;
• Exemption is not filed timely;
Organizations qualifying for immediate exemption include
• In the case of age 65 or older and disabled, only one ex-
cemeteries, charitable organizations, religious organizations,
emption may be claimed;
private schools, low-income housing organizations, youth
• Documentation filed with a request for homestead exemp-
development associations, nonprofit water supply and waste-
tion does not match the property address; or
water service corporations, veteran’s organizations and other
• In the case of a residence, an exemption has already been
nonprofit organizations.13
granted on another property.

10
Tex. Tax Code § 11.43(d)
11
Tex. Tax Code § 11.42
12
Tex. Tax Code § 11.42 14
Tex. Tax Code §§ 11.42 and 11.436
13
Tex. Tax Code § 11.42 15
Tex. Tax Code § 11.45

2 — Property Tax Exemptions

Texas Property Tax

Types of Exemptions
Tax Code exemption requirements are extensive. Property homestead in or outside of Texas . The application must in-
owners should read applicable statutes carefully. The Comp- clude a copy of the applicant’s driver’s license or state iden-
troller’s hardcopy publication annotated Property Tax Code tification card. This requirement does not apply to a resident
contains the text of the law and notes on significant court cases. of a facility that provides services related to health, infirmity,
or aging; or to applicants who are certified for participation
The following is a short summary of selected exemption pro- in the Attorney General’s Address Confidentiality Program.20
visions. Appendix B lists other exemptions authorized by the
Tax Code . A chief appraiser is prohibited by law from allowing a home-
stead exemption unless the address on the identification pro-
Residence Homestead vided corresponds to the address of the property for which
the exemption is claimed. A chief appraiser may waive this
(Tax Code Section 11.13) requirement for an active duty U.S. armed services member or
Most residential exemption court cases concern the owner’s the spouse of an active duty service member if the application
qualifications for the exemption; whether the exemption cov- includes a copy of the military identification card and a copy
ers specific improvements or amounts of land; or whether the of a utility bill for the residence homestead. A chief appraiser
property is the principal residence of the owner . Appendix C also may waive the requirement if the applicant holds specific
lists mandatory and local option residence homestead exemp- driver’s license issued for judges and the spouses of judges or
tions, their amounts and the applicable taxing units. peace officers and includes with the application a copy of the
application for that license .21
General Residence Homestead
Texas law requires school districts to offer a $25,000 exemp- Normally the exemption applies to those portions of the
tion on residence homesteads .16 Any taxing unit, including a house actually used as a residence, as opposed to business
city, county, school district or special district, has the option or other use .22 The homestead includes up to 20 acres of land
of deciding locally to offer a separate residence homestead and any improvements used for residential purposes.23
exemption of up to 20 percent of a property’s appraised value,
but not less than $5,000.17 Counties are also required to of- The home must be the principal residence of the applicant.
fer a $3,000 exemption if the county collects farm-to-market A qualified homeowner does not lose his or her homestead
roads or flood control taxes.18 exemption if the homeowner does not establish a different
principal residence, intends to return and occupy the resi-
There are no specific qualifications for the general homestead dence and is temporarily absent for a period of less than two
exemption other than the owner has an ownership interest in years. The law provides that homeowners in military service
the property and uses the property as the owner’s principal inside or outside the United States or in a facility providing
residence .19 However, an applicant is required to state that the services related to health, infirmity or aging may be away
applicant does not claim an exemption on another residence from the home longer than two years and still keep the home-
stead exemption . The two-year limit does not apply to these
homeowners .24

20
Tex. Tax Code § 11.43(j)
16
Tex. Tax Code § 11.13(b) 21
Tex. Tax Code § 11.43(n) and (p)
17
Tex. Tax Code § 11.13(n) 22
Tex. Tax Code § 11.13(k)
18
Tex. Tax Code § 11.13(a) 23
Tex. Tax Code § 11.13(j)(1)
19
Tex. Tax Code § 11.13(j)(1) 24
Tex. Tax Code § 11.13(l)

Property Tax Exemptions — 3

Age 65 or Older or Disabled spouses of age 65 or older owners who die while qualified for
Texas law requires school districts to offer an additional the tax ceiling. These homeowners may also transfer the per-
$10,000 residence homestead exemption to persons age 65 or cent of tax paid, based on their ceiling, when they purchase
older or disabled.25 Any taxing unit, including a city, county, another home and use it as their principal residence .33
school district or special district, has the option of deciding
locally to offer a separate residence homestead exemption for A county, city or junior college district can offer a tax limita-
persons age 65 or older or disabled in an amount not less than tion on homesteads of taxpayers who are disabled or age 65
$3,000.26 or older .34 The taxing unit’s governing body may adopt the
limitation or citizens in the taxing unit by petition and elec-
To qualify for the mandatory and local option exemption for tion may adopt the limitation .35 Once adopted, the Tax Code
persons age 65 or older, the owner must be age 65 or older provides for the tax ceiling for disabled and age 65 or older
and live in the house.27 If the age 65 or older homeowner homeowners and their right to transfer to another homestead
dies, the surviving spouse may continue to receive the local in that taxing unit the same benefit of that tax ceiling. It also
option exemption if the surviving spouse is age 55 or older at provides for surviving spouses age 55 or older to retain the
the time of death and lives in and owns the home and applies tax ceiling.36
for the exemption .28
Manufactured and Cooperative Housing
A disabled person must meet the definition of disabled for the Manufactured homes may qualify for homestead exemptions.
purpose of payment of disability insurance benefits under the For a manufactured home to qualify as a residential home-
Federal Old-Age, Survivors and Disability Insurance Act.29 A stead, the owner must follow detailed provisions concerning
homeowner does not have to meet the definition of disabled a statement of ownership .37
or age 65 or older on Jan. 1 of the tax year, but may qualify
as disabled or age 65 or older at any time during the tax year. A property owner may also receive a homestead exemption
The exemption applies to the entire tax year as if the person for cooperative (co-op) housing.38 Upon receiving a request
was disabled or age 65 on Jan. 1.30 If these applicants are not from the co-op, the chief appraiser must separately appraise
specifically identified on a deed or other recorded instrument, and list each individual stockholder’s interest. Each stock-
they must provide an affidavit or other compelling evidence holder whose interest is separately appraised may protest and
of ownership .31 appeal the appraisal like any other property owner.39

The trustor of a qualifying trust may qualify for the residence Uninhabitable or Unstable
homestead exemption. A residence owned by an individual If a qualified residential structure for which the owner re-
through an interest in a qualifying beneficial trust and oc- ceives an exemption is rendered uninhabitable or unusable
cupied by such individual as a trustor or beneficiary of the by a casualty or by wind or water damage, the owner may
trust may qualify. An owner’s surviving spouse who has a continue to receive the exemption. The exemption for the
life estate in a residence may also qualify the property for a structure and the land and improvements used in the residen-
residence homestead exemption .32 tial occupancy of the structure while the owner constructs a
replacement qualified residential structure on the land con-
The Tax Code places a ceiling on school taxes for residence tinues if the owner does not establish a different principal
homesteads owned by persons who are age 65 and older or dis- residence for which the owner receives an exemption during
abled. The tax ceiling continues for age 55 or older surviving that period and intends to return and occupy the structure as
the owner’s principal residence .40
25
Tex. Tax Code § 11.13(c) 33
Tex. Tax Code § 11.26(a), (g) and (i)
26
Tex. Tax Code § 11.13(d) 34
Tex. Tax Code § 11.261(a)
27
Tex. Tax Code § 11.13(c) and (d) 35
Tex. Const. art. VIII, § 1-b(h)
28
Tex. Tax Code § 11.13(q) 36
Tex. Tax Code § 11.261(g) and (i)
29
Tex. Tax Code § 11.13(m)(1) 37
Tex. Tax Code § 11.432
30
Tex. Tax Code § 11.42(c) 38
Tex. Tax Code § 11.13(o)
31
Tex. Tax Code § 11.43(o) 39
Tex. Tax Code § 23.19(b)
32
Tex. Tax Code § 11.13(j)(1)(D) and (j)(2) 40
Tex. Tax Code § 11.135

4 — Property Tax Exemptions

To continue to receive the exemption, the owner must begin for the exemption after Jan. 1 of a tax year, they receive an
active construction of the replacement qualified residential exemption for the applicable portion of that year immediately
structure or other physical preparation of the site on which upon qualifying for the exemption. Likewise, if the property
the structure is to be located not later than one year after the no longer qualifies in a year, the exemption is removed for
owner ceases to occupy the former qualified residential struc- that portion of the year .46
ture as the owner’s principal residence . The owner may not
receive the exemption for that property under these circum- The 100 percent disabled veteran exemption extends to a sur-
stances for more than two years . The site of a replacement viving spouse who was married to a disabled veteran who
qualified residential structure is considered under physical qualified or would have qualified for this exemption if it had
preparation if the owner has engaged in architectural or engi- been in effect at the time of the veteran’s death. To be entitled
neering work, soil testing, land clearing activities or site im- to this exemption, the surviving spouse must not have remar-
provement work necessary for the construction of the struc- ried; the property was the residence homestead of the surviv-
ture or has conducted an environmental or land use study ing spouse when the veteran died; and the property remains
relating to the construction of the structure.41 the residence homestead of the surviving spouse.47

If the surviving spouse is eligible for the exemption and then

Veterans’ Exemptions (Tax Code
qualifies a different property as a residence homestead, the
Sections 11.131, 11.132, 11.133, surviving spouse is entitled to the same dollar amount of the
11.22 and 11.23(a)) former exemption that was last received at the former home-
stead. The surviving spouse cannot remarry to receive the
Partial Exemption
subsequent exemption. The chief appraiser of the county in
Texas law provides partial exemptions for any property
which the former residence was located must provide to the
owned by disabled veterans and surviving spouses and chil-
surviving spouse a written certificate so that the amount of
dren of deceased disabled veterans.42 It also provides a partial
the exemption on the subsequent qualified homestead can be
exemption for residence homesteads donated at no cost or not
determined .48
more than 50 percent of the good faith estimate of its market
value to disabled veterans by charitable organizations that
The chief appraiser is also required, under Tax Code Section
extends to surviving spouses who have not remarried. The
11.431 to accept and approve or deny an application for the
amount of exemption is determined according to percentage
surviving spouse after the deadline for filing has passed, if the
of service-connected disability.43
application for the exemption is filed not later than two years
after the delinquency date for the taxes on the homestead.49
Total Exemption
A surviving spouse of a member of the U.S. armed services
Veterans Organizations
killed in action is allowed a total property tax exemption on
Property owned by a veterans organization is exempt. Quali-
his or her residence homestead if the surviving spouse has not
fied veterans’ organizations are defined as non-profit organi-
remarried since the death of the armed services member.44
zations composed primarily of members or former members
of the armed forces of the United States or its allies and that
A disabled veteran who receives 100 percent disability com-
are chartered or incorporated by the U.S. Congress.50
pensation due to a service-connected disability and a rating
of 100 percent disabled or individual unemployability from
the United States Department of Veterans Affairs is entitled
to an exemption from taxation of the total appraised value of
the veteran’s residence homestead.45 If these veterans qualify

41
Tex. Tax Code § 11.135 46
Tex. Tax Code §§ 11.42, 26.10(c) and 26.1125
42
Tex. Tax Code § 11.22 47
Tex. Tax Code § 11.131
43
Tex. Tax Code § 11.132 48
Tex. Tax Code §§ 11.131
44
Tex. Tax Code § 11.133 49
Tex. Tax Code § 11.431
45
Tex. Tax Code § 11.131 50
Tex. Tax Code § 11.23(a)

Property Tax Exemptions — 5

Surviving Spouse of First Responder nonqualified person or business, the other use must be limited
to activities that benefit the people the organization serves.55
(Tax Code Section 11.134)
Texas law provides a total property tax exemption for the res- Community Land Trusts (Tax Code
idence homestead of a surviving spouse of a first responder
killed or fatally injured in the line of duty if the surviving Section 11.1827)
spouse has not remarried since the first responder’s death. Real and personal property owned by a community land
This exemption applies regardless of the date of the first trust for the purpose of providing affordable housing for low-
responder’s death. If the surviving spouse is eligible for the income and moderate-income residents, promoting resident
exemption and then qualifies a different property as a resi- ownership of housing, keeping housing affordable for future
dence homestead, the surviving spouse is entitled to the same residents, and capturing the value of public investment for
dollar amount of the former exemption that was last received long-term community benefit is exempt.56 The exemption must
at the former homestead . The chief appraiser of the county be adopted by the governing body of the taxing unit before
in which the former residence was located must provide to July 1.57 Once the exemption is allowed, it does not have to be
the surviving spouse a written certificate so that the exemp- claimed in subsequent years unless the ownership changes or
tion amount on the subsequent qualified homestead can be the person’s qualifications for the exemption changes.58
determined .51
To receive the exemption, the trust must meet certain require-
ments of a charitable organization; own the land for the pur-
Charitable Organizations Generally
pose of leasing it and selling or leasing housing units located
(Tax Code Section 11.18) on the land; and engage exclusively in the sale or lease of
Property owned by qualified charitable organizations is ex- housing as provided for in the Local Government Code Sec-
empt. An organization must meet requirements regarding tion 373B.002. The trust must also conduct an annual audit
how it is organized, what it does and how it uses its property. by an independent auditor and report the results of the au-
The organization is limited to charitable activities that are dit to the local governing body and the chief appraiser. The
listed in Tax Code Section 11.18.52 property cannot be exempted after the third year on which
the trust acquired the property unless the trust is offering to
Exemptions for charitable organizations require the proper- sell or lease the property or is leasing the property according
ty owner to have a charter or bylaws dedicating property to to Local Government Code Chapter 373B.59
particular purposes and providing for disposition of property
upon dissolution .53 The bylaws must pledge the group’s prop- Primarily Charitable Organizations
erties to charitable purposes. The organization may not allow
anyone to realize private gain from the organization’s activi- (Tax Code Section 11.184)
ties .54 In some cases, particularly involving medical care fa- Real and personal property owned by organizations engaged
cilities, children’s homes and nursing homes, questions may primarily in performing charitable functions is exempt. Be-
involve whether the institution serves people who cannot pay fore applying for an exemption with the appraisal district, an
for services as well as those who can. organization must obtain from the Comptroller’s office a de-
termination letter stating the organization is engaged primar-
The exemption applies to property (buildings and land on ily in performing charitable functions. The chief appraiser
which the buildings are located and personal property) owned must accept a Comptroller’s office determination letter as
by the charitable organization. The property must be used conclusive evidence that the organization engages primarily
exclusively by the organization or other equally qualified or- in performing charitable functions and is eligible for exemp-
ganizations. If part of the property is leased to or used by a tion. The chief appraiser determines if the organization uses

55
Tex. Tax Code § 11.18
51
Tex. Tax Code § 11.134 56
Tex. Tax Code § 11.1827 and Tex. Loc. Gov’t Code § 373B.004
52
Tex. Tax Code § 11.18 57
Tex. Tax Code § 11.1827
53
Tex. Tax Code § 11.18(f) 58
Tex. Tax Code § 11.43(c)
54
Tex. Tax Code § 11.18(e) 59
Tex. Tax Code § 11.1827

6 — Property Tax Exemptions

its property for its charitable purposes. An organization is limit of six years for contiguous property and three years for
required to obtain a new Comptroller’s office determination non-contiguous property.65
letter every fifth year after the exemption is granted. To im-
plement the determination process, the Comptroller’s office The exemption also applies to partially complete improve-
has adopted rules and prescribed a form for applying for a ments or for physical preparation . The exemption for incom-
determination letter .60 plete improvements lasts for three years.66

The exemption also applies to partially complete improve- Exemptions for religious organizations require the property
ments or for physical preparation . The exemption for incom- owner to have a charter or bylaws dedicating property to par-
plete improvements lasts for three years.61 ticular purposes and providing for disposition of property
upon dissolution .67
Religious Organizations (Tax Code
Section 11.20) Private Schools (Tax Code Section
Places of religious worship and clergy residences owned by 11.21)
qualified religious groups are exempt. Religious organiza- The school exemption applies to property used for school
tions must be organized and operated primarily for religious purposes. As with charitable and religious organizations, the
worship or the spiritual welfare of individuals. The religious school must use its assets in performing its function or the
organization must meet requirements similar to those im- function of another educational organization.68 A property
posed on charitable and youth organizations.62 owned by a religious organization and leased for use as a
school may be exempt as a school.69
Generally, if an organization qualifies under this section, it
may exempt property of the following types: actual places The exemption also applies to partially complete improve-
of religious worship, personal property used at the place of ments or for physical preparation . The exemption for incom-
worship, residences for clergy and personal property used at plete improvements lasts for three years.70
the residences. A religious organization may use its assets in
performing its functions or the functions of another religious Exemptions for private schools also require the property
organization.63 owner to have a charter or bylaws dedicating property to
particular purposes and providing for disposition of property
Public property owned by the state or a taxing unit and leased upon dissolution .71
to a religious organization may receive the religious organi-
zation exemption if the property is used as a place of regular Public Property (Tax Code Section
religious worship and meets other requirements of the Tax
Code. The religious organization applies and takes other ac- 11.11)
tion relating to the exemption as if the organization owned To qualify for the public property exemption, the state of
the property .64 Texas or a political subdivision of the state must own the
property. The property must be used for public purposes
A property owned by a religious organization and leased for such as the health, comfort and welfare of the public. State-
use as a school may be exempt as a school. A religious or- owned property is taxable if it is rented to a private busi-
ganization’s land held for expanding or constructing a place ness that uses it for something inconsistent with the agency’s
of worship may be exempt, so long as the land produces no duties. The property may not be used to provide housing to
revenue during the holding period. The land exemption has a
65
Tex. Tax Code § 11.20
66
Tex. Tax Code § 11.20
60
Tex. Tax Code § 11.184 67
Tex. Tax Code § 11.20(c)
61
Tex. Tax Code § 11.184 68
Tex. Tax Code § 11.21
62
Tex. Tax Code § 11.20 69
Tex. Tax Code § 11.21
63
Tex. Tax Code § 11.20 70
Tex. Tax Code § 11.21
64
Tex. Tax Code § 11.20 71
Tex. Tax Code § 11.21

Property Tax Exemptions — 7

the public other than students or agency employees. However, by the department and subject to a lease-purchase agreement
if an educational institution uses the property primarily for providing that legal title to the improvement will pass to the
instructional purposes and secondarily for residences, the department at the end of the lease term .74
property is exempt. Additionally, property held for the benefit
of a state junior college, college or university is exempt under Tangible personal property leased to the state or a political
the same conditions .72 subdivision is exempt if the property is subject to a lease-
purchase agreement providing that the state or political sub-
Property of a higher education development foundation or an division takes legal title to the property at the end of the lease
alumni association located on land owned by the state for term. The exemption ends 30 days after the lease terminates
the support, maintenance or benefit of a state institution of if the state or political subdivision does not take title to the
higher education is exempt provided that the foundation or personal property .75
organization meets the requirement. The organization must
be organized exclusively to operate programs or perform Real and personal property owned by a nonprofit corporation
activities for the benefit of institutions of higher education. engaged primarily in providing chilled water and steam to
Finally, the property must be used exclusively for those pro- certain health-related facilities is exempt . The corporation’s
grams or activities.73 property would be considered as if it were owned by the state
and used for health and education purposes . Certain facilities
An improvement is considered owned by the state and prop- related to transportation leased to a private entity to provide
erty used for public purposes if it is located on land owned transportation or for utility purposes are also exempt .76
by the Texas Department of Criminal Justice, leased and used

74
Tex. Tax Code § 11.11
72
Tex. Tax Code § 11.11 75
Tex. Tax Code § 11.11
73
Tex. Tax Code § 11.11 76
Tex. Tax Code § 11.11

8 — Property Tax Exemptions

Appendix A
Tax Code Exemption General Application Provisions

No Application Required
Tax Code Section Exemption
11.11 Public Property
11.12 Federal Exemptions
11.14 Tangible Personal Property Not Producing Income
11.145 Income-Producing Tangible Personal Property Having Value Less Than $500
11.146 Mineral Interest Having Value of Less than $500
11.15 Family Supplies
11.16 Farm Products
11.161 Implements of Husbandry
11.25 Marine Cargo Containers Used Exclusively in International Commerce

Annual Application Required

Tax Code Section Exemption
11.111 Public Property Used to Provide Transitional Housing for Indigent Persons
11.1801 Charity Care and Community Benefits Requirements for Charitable Hospital
11.181 Charitable Organizations Improving Property for Low-Income Housing
11.1825 Organizations Constructing for Rehabilitating Low-Income Housing: Property Not Previously
Exempt (Note: See provisions of 11.1826)
11.184 Organizations Engaged Primarily in Performing Charitable Functions (Note: Reapplication
required every fifth tax year instead of annually.)
11.185 Colonia Model Subdivision Program
11.23(b)-(g), (i), (k) or (l) Miscellaneous Exemptions: Federation of Women’s Clubs; Nature Conservancy of Texas;
Congress of Parents and Teachers; Private Enterprise Demonstration Associations; Bison, Buffalo
and Cattalo; Theater Schools; Community Service Clubs; Scientific Research Corporations; and
Incomplete Improvements
11.24 Historic Sites
11.251 Tangible Personal Property Exempt
11.252 Motor Vehicles Leased for Personal Use
11.253 Tangible Personal Property in Transit
11.28 Property Exempted from City Taxation by Agreement
11.311 Landfill-Generated Gas Conversion Facilities
11.32 Certain Water Conservation Initiatives

Property Tax Exemptions — 9

One-Time Application Required, Unless Requested by Chief Appraiser
Tax Code Section Exemption
11.13 Residence Homestead
11.131 Residence Homestead of 100 Percent or Totally Disabled Veteran
11.132 Donated Residence Homestead of Partially Disabled Veteran
11.133 Residence Homestead of Surviving Spouse of Member of Armed Forces Killed in Action
11.134 Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty
11.17 Cemeteries
11.18 Charitable Organizations
11.182 Community Housing Development Organizations Improving Property for Low-Income and
Moderate-Income Housing: Property Previously Exempt (Note: See provisions of 11.182(e)(3),
11.182(g) and 11.1826)
11.1827 Community Land Trust
11.183 Association Providing Assistance to Ambulatory Health Care Centers
11.19 Youth Spiritual, Mental and Physical Development Associations
11.20 Religious Organizations
11.21 Schools
11.22 Disabled Veterans
11.23(a), (h), (j), (j-1) or (m) Miscellaneous Exemptions: Veterans Organizations; County Fair Associations; Medical Center
Development; Medical Center Development in Populous Counties; and National Hispanic
Institute
11.231 Nonprofit community Business Organization Providing Economic Development Services to
Local Community
11.254 Motor Vehicle Used for Production of Income and for Personal Activities
11.27 Solar and Wind-Powered Energy Devices
11.271 Offshore Drilling Equipment Not in Use
11.30 Nonprofit Water Supply or Wastewater Service Corporation
11.31 Pollution Control Property
11.315 Energy Storage System in Nonattainment Area
11.33 Raw Cocoa and Green Coffee Held in Harris County
11.437 Exemption for Cotton Stored in Warehouse

10 — Property Tax Exemptions

Appendix B
Other Property Tax Code Exemption Summaries

Type Tax Code Section Summary

Public property used to 11.111 This section exempts property owned by the United States or a federal
provide transitional housing agency and used to provide transitional housing to the poor under a program
for the indigent operated by the U.S. Department of Housing and Urban Development. The
property is exempted only by ordinance or order of the taxing units in which
the property is located.
Federal exemptions 11.12 Property exempt from ad valorem taxation under federal law is exempt from
taxation.
Tangible personal property 11.14 Generally, all tangible personal property, other than manufactured homes,
not used to produce income that is not held or used for production of income is exempt from property
taxes. However, the governing body of a taxing unit may, by official action,
continue to tax property other than family supplies, household goods or
personal effects. A structure that is substantially affixed to real estate and is
used or occupied as a residential dwelling is taxable. The term structure does
not include trailer-type vehicles designed primarily for use as temporary living
quarters in connection with recreational, camping, travel or seasonal use.
Income-producing 
tangible 11.145 and 11.146 An owner’s personal property used to produce income is aggregated to
personal property and determine if the owner’s total taxable value in each separate taxing unit is
mineral interest property less than $500 and is exempt. The taxable value of a property owner’s mineral
having value 
of less than interests is aggregated to determine if the taxable value within each taxing
$500 unit is less than $500 and is exempt.
Family supplies 11.15 A family is entitled to an exemption from taxation of its family supplies for
home or farm use.
Farm products 11.16 Livestock, poultry, agricultural products, eggs and some nursery products
are exempt when they are still in the hands of the person who raised them.
Nursery products are exempt only if they are still growing on Jan. 1. Livestock,
poultry and eggs must be owned by the person who is paying for their care
on Jan. 1. Farm products include standing timber or timber that has been
harvested and on Jan. 1 is located on the real property on which it was
produced and is under the ownership of the person who owned the timber
when it was standing.
Implements of husbandry 11.161 Machinery and equipment used for farming, ranching and timber production,
regardless of primary design, is exempt.
Cemeteries 11.17 Cemetery property is exempt. The property must be used exclusively for
human burial. The property may not be held for profit.

Property Tax Exemptions — 11

Type Tax Code Section Summary
Charity care and community 11.1801 To qualify as a charitable organization under Tax Code Section 11.18(d)
benefits requirements for (1), a nonprofit hospital or hospital system must provide charity care and
charitable hospital community benefits as follows: (1) at a level that is reasonable in relation
to the community needs, as determined through the community needs
assessment, the available resources of the hospital or hospital system, and
the tax-exempt benefits received by the hospital or hospital system; (2) in
an amount equal to at least 4 percent of the hospital’s or hospital system’s
net patient revenue; (3) in an amount equal to at least 100 percent of the
hospital’s or hospital system’s tax-exempt benefits, excluding federal income
tax; or (4) in a combined amount equal to at least 5 percent of the hospital’s
or hospital system’s net patient revenue, provided that charity care and
government-sponsored indigent health care are provided in an amount equal
to at least 4 percent of net patient revenue.
Charitable organization 11.181 A charitable organization improving property for low-income housing is
improving property for 
low- exempt if it meets the Tax Code requirements and uses volunteer labor to
income housing build or repair housing for sale, without profit, to a low-income individual or
family. Each property may be exempt for a maximum of five years after the
property’s acquisition date. Property that received an exemption based on its
ownership by an organization that constructs or rehabilitates property and
uses the property to provide affordable, low-income housing and that was
subsequently transferred by that organization to a charitable organization
is not exempted after the fifth year it was transferred. If the organization
sells the property to an individual or family that is not low income, the
chief appraiser enters a penalty in the appraisal records and notifies the
organization and the buyer. The penalty is equal to the taxes that would have
been imposed in each year the property was exempt plus 12 percent interest.
Community housing 11.182 Improved or unimproved real property owned by an organization under Tax
development organizations Code Section 11.182 is exempt if certain requirements are met. The statute
(CHDOs) improving applies to CHDOs (as provided under 42 U.S.C. §12704) meeting requirements
property for low-income of charitable organizations under Tax Code Section 11.18(e) and (f) and
and moderate-income engaging exclusively in building or repairing property for sale or rent without
housing (property previously profit to low-income or moderate-income individuals or families and related
exempt) activities. An organization may qualify for an exemption only if it received an
exemption under Tax Code Section 11.182 for the subject property for any
part of the 2003 tax year. The statute includes restrictions on eligibility and
requirements pertaining to, under specified conditions, the number of years
property may be exempted, exemption in subsequent years for multifamily
rental property of 36 or more dwelling units, certain property constructed
after Dec. 31, 2001, property used for administrative purposes, property
acquired or sold during the preceding year, and change in ownership. The
statute includes requirements for preparation and delivery of annual audits.

12 — Property Tax Exemptions

Type Tax Code Section Summary
Organizations constructing 11.1825 Real property owned by an organization under Tax Code Section 11.1825
or rehabilitating low-income is exempt if certain requirements are met. Generally, the statute applies to
housing property not organizations constructing or rehabilitating and using to provide housing to
previously exempt individuals or families meeting certain income eligibility requirements and
exemption is prohibited for housing projects constructed by an organization
if construction was completed before Jan. 1, 2004. The statute provides for an
exemption of 100 percent of appraised value of single-family dwellings subject
to sale and, for multi-family or single-family dwellings subject to rental, an
exemption of 50 percent of appraised value unless otherwise provided by a
the governing body of a taxing unit any part of which is located in a county
with a population of at least 1.8 million. An organization may not receive an
exemption from a taxing unit located in a county with a population of at least
1.8 million unless the exemption is approved by the taxing unit’s governing
body. Under such circumstances, the statute sets forth a process by which an
organization must submit a written request for exemption approval to a taxing
unit’s governing body and the governing body must take specified action on
the request and, if the taxing unit approves the exemption, the chief appraiser
must still make a determination that the property qualifies for an exemption.
The statute includes restrictions on eligibility and requirements pertaining to,
under specified conditions, status, history, policies, and board composition
of the organization, income eligibility, housing project square footage
reservation for certain individuals or families, rent, property owned for purposes
of rehabilitation, transfer of property and change of ownership, appraisal
requirements, and public notice of capitalization rates. Tax Code Section
11.1826 includes requirements for preparation and delivery of annual audits.
Charitable associations 11.183 An organization that assists ambulatory health care centers is exempt if it is
providing assistance to exempt from federal income tax; is funded by a grant under the Federal Public
ambulatory health care Health Service §330; does not perform abortions or provide abortion services;
centers and meets other Tax Code requirements.
Colonia Model 
Subdivision 11.185 Unimproved real property owned by an organization under the colonia model
Program subdivision program is entitled to an exemption if the organization meets the
requirements of Tax Code Section 11.18(e) and (f); purchased the property or
is developing the property with proceeds of a loan from Texas Department
of Housing and Community Affairs; and owns the property for the purpose
of developing a model colonia subdivision. Buildings and tangible personal
property used for administration can also qualify for an exemption. Penalty
with 12 percent annual interest may be assessed under certain circumstances
if the property is sold.
Youth spiritual, mental 11.19 The property of qualified youth development groups affiliated with a state
and physical development or national organization is exempt. A youth development association may
associations use its property in performing its functions or the functions of another youth
development organization. The exemption also applies to partially complete
improvements or physical preparation. The exemption for incomplete
improvements lasts only three years.
Miscellaneous exemptions 11.23 The miscellaneous exemptions apply to specific entities, such as veteran’s
organizations, theater schools and medical center development, as well other
exemptions. See the Tax Code for more information.

Property Tax Exemptions — 13

Type Tax Code Section Summary
Nonprofit community 11.231 An association that qualifies as a nonprofit community business organization
business organization is entitled to an exemption from taxation of buildings and tangible personal
providing economic property it owns and uses exclusively to perform its primary functions. The
development services 
to exemption also applies to real property owned by the organization consisting
local community of an incomplete improvement that is under active construction or other
physical preparation and is designed and intended to be used exclusively by
qualified nonprofit community business organizations. It also applies to the
land on which the incomplete improvement is located that will be reasonably
necessary for the use of the improvement.
Use of exempt property by non-qualified nonprofit community business
organizations does not result in the loss of an exemption if the use is
incidental to use by qualified nonprofit community business organizations
and limited to activities that benefit the beneficiaries of the nonprofit
community business organizations that own or use the property.
Historic or 
archeological 11.24 To qualify for the historic or archeological site exemption, a structure must be
sites designated a historic building or archeological site and the taxing unit must
vote to grant an exemption. The structure must be designated as a Recorded
Texas Historic Landmark by the Texas Historical Commission or the taxing unit
must designate it as historically significant and in need of tax relief. The taxing
unit decides the amount of the exemption.
Marine cargo containers 11.25 Marine cargo containers used exclusively in international commerce are
used exclusively in exempt. A marine cargo container is a container used to transport goods
international commerce by ship, readily handled without reloading to transfer from one mode of
transport to another and used repeatedly. The definition also includes
a container that is fully or partially enclosed, has an open top suitable
for loading or consists of a flat rack suitable for securing goods onto the
container. The exemption is limited to property owned by a citizen or entity of
a foreign country and taxed in a foreign country.
Goods exported from Texas 11.251 The Tax Code provides for a freeport exemption to implement Art. VIII, Sec. 1-j
of the Texas Constitution which exempts goods, wares, ores, merchandise and
other tangible property, other than oil, gas and petroleum products (defined
as liquid and gaseous materials immediately derived from refining petroleum
or natural gas) and aircraft or repair parts used by a certified air carrier. The
freeport goods qualify if they leave Texas within 175 days of the date they are
brought into or acquired in the state. Freeport goods that are aircraft parts may
qualify if they leave the state within 730 days of being acquired or brought into
the state, but this extension requires official action by the taxing unit.
Leased vehicles for 
personal 11.252 Motor vehicles (passenger cars or trucks with a shipping weight of not
use more than 9,000 pounds) leased for personal use are exempt. Personal use
means 50 percent or more of its use, based on mileage, is for activities that
do not involve the production of income. By rule, the Comptroller’s office
has established exemption application requirements and procedures to
determine whether a vehicle qualifies. The lessee completes a Comptroller-
adopted form certifying under oath that the vehicle is not primarily used for
the production of income. The owner (lessor) maintains the lessee executed
forms for inspection and copying by the appraisal district. The owner renders
nonexempt vehicles for taxation and provides the chief appraiser with an
additional list of all leased vehicles. A city, by ordinance adopted before Jan. 1,
2002, may tax personal-use leased vehicles.

14 — Property Tax Exemptions

Type Tax Code Section Summary
Tangible personal 
property 11.253 The Tax Code provides for an exemption for goods-in-transit to implement
in transit Art. VIII, Sec. 1-n of the Texas Constitution. Goods in transit are goods acquired
inside or outside the state, stored under a bailment contract by a public
warehouse operator at one or more public warehouse facilities that are not
in any way owned or controlled by the owner of the property who acquired
or imported the property and then shipped to another location in or out of
this state within 175 days. The goods do not include oil, gas or petroleum
products or special inventories such as motor vehicles in a dealer’s retail
inventory. To tax goods in transit, taxing units must take official action.
Motor vehicle used for 11.254 One passenger car or light truck, if it is owned by an individual and used in
production of income and the individual’s business or profession and also used for personal activities,
for personal activities is exempt. The exemption does not apply to vehicles used to transport
passengers for hire.
Solar- and wind-powered 11.27 Persons who install a solar- or wind-powered energy device to produce
energy devices energy for onsite use are entitled to exempt the amount of value the device
contributes to their property.
Offshore drilling rigs 11.271 Offshore drilling rigs that are stored in a county bordering the Gulf of Mexico
or a bay or other body of water immediately adjacent to the Gulf of Mexico
are exempt. Drilling rigs are exempt only if they are stored for a purpose other
than repair and are not used for drilling. They must be designed for offshore
drilling. Personal property that is used or part of an offshore spill response
system is exempt if the system is being stored while not in use in a county
bordering the Gulf of Mexico or a bay or other body of water immediately
adjacent to the Gulf of Mexico. Certain ownership requirements apply.
Personal property used in connection with the exploration or production of
oil or gas is not exempt as an offshore spill response containment system.
Tax abatement 11.28 Property owners who have entered redevelopment and tax abatement
agreements with local taxing units under Tax Code Chapter 312 are allowed to
exempt all or part of the property’s value from taxation.
Nonprofit water supply 11.30 Property owned and reasonably necessary for a nonprofit water supply or
or wastewater service wastewater service corporation’s functions is exempt. The exemption also
corporations applies to partially complete improvements or for physical preparation. The
exemption for incomplete improvements lasts for three years.
Pollution control 11.31 Property acquired after Jan. 1, 1994 and used for pollution control may
receive an exemption. The exemption applies to all or part of real and
personal property used solely or partly as a facility, device or method to
control air, water or land pollution. The exemption also applies to an extensive
list of clean energy technologies that are used to control pollution. The
Texas Commission on Environmental Quality (TCEQ) is required to adopt
rules to create a list of facilities, devices or methods to control pollution that
are eligible for exemption. Property not eligible for the exemption includes
residential; park or scenic land; vehicles; property subject to a tax abatement
agreement before Jan. 1, 1994; and property owned by a person or company
that manufactures pollution control equipment or provides pollution
control services. To qualify for a use determination, the person or company
must apply to TCEQ for a permit or permit exemption. TCEQ notifies the
chief appraiser about the application and determines the proportion of the
property that is used for pollution control. Then, TCEQ issues a determination
letter to the applicant. The property owner sends the letter with the
exemption application to the appraisal district. The chief appraiser must
accept the letter’s determination as conclusive evidence for the exemption.

Property Tax Exemptions — 15

Type Tax Code Section Summary
Landfill-generated gas 11.311 A person is entitled to an exemption on personal property that is located on
conversion facilities or in close proximity to a landfill and is used to collect gas generated by the
landfill; compress and transport the gas; process the gas; and deliver the gas.
This property is considered used as a facility, device or method for the control
of air, water or land pollution.
Energy storage system in 11.315 Energy storage systems used, constructed, acquired or installed to meet or
nonattainment area exceed air pollution laws, rules and regulations is exempt if the governing
body of the taxing unit provides for the exemption by official action. It must
be in an area designated as non-attainment; be in a municipality with a
population of at least 100,000 adjacent to a municipality with a population
of more than two million; have 10 megawatt capacity; and be installed on or
after Jan. 1, 2014.
Certain water 
conservation 11.32 Property designated by a taxing unit as property upon which approved local
initiatives initiatives have been implemented may be exempt. The taxing unit may
exempt part or all of the value of property with approved water conservation,
desalination or brush control initiatives. The taxing unit’s governing body
must designate approved initiatives by adopting an ordinance or other law.
Raw cocoa and green coffee 11.33 This section exempts all raw cocoa and green coffee held in Harris County.
held in Harris County The owner need not claim the exemption, once granted, in subsequent years
unless requested by the chief appraiser.
Cotton Stored in Warehouse 11.437 A person who operates a warehouse used primarily for the storage of cotton
for transportation outside of Texas may apply for an exemption under Tax
Code Section 11.251 for the cotton stored in the warehouse on behalf of
all the owners of the cotton. The cotton must be eligible for a freeport
exemption under Tax Code Section 11.251 and is presumed to have been
transported outside of Texas not later than 175 days after the date the cotton
was acquired or imported into Texas.

16 — Property Tax Exemptions

Appendix C
Residence Homestead Exemptions

Tax Code Total or Mandatory or

Exemption Section Taxing Unit Partial Local Option Amount

General Residence
Homestead 11.13(b) School Districts Partial Mandatory $25,000

An amount up to 20
percent of the property’s
General Residence Cities, Counties, School value, but not less than
Homestead 11.13(n) Districts or Special Districts Partial Local Option $5,000

Farm-to-Market
Roads or Flood Mandatory (if
Control (if collected) 11.13(a) Counties Partial collected) $3,000

Age 65 or Older or
Disabled 11.13(c) School Districts Partial Mandatory $10,000

An amount adopted by
Age 65 or Older or Cities, Counties, School the taxing unit, but no
Disabled 11.13(d) Districts or Special Districts Partial Local Option less than $3,000

An amount determined
by the percentage of
Cities, Counties, School service-connected
Disabled Veterans 11.22 Districts and Special Districts Partial Mandatory disability

Disabled
Veterans with An amount determined
Homes Donated by the percentage of
by Charitable Cities, Counties, School service-connected
Organizations 11.132 Districts and Special Districts Partial Mandatory disability

100 Percent Cities, Counties, School 100 percent of the

Disabled Veterans 11.131 Districts and Special Districts Total Mandatory property’s value

Surviving Spouse of
U.S. Armed Services
Member Killed in Cities, Counties, School 100 percent of the
Action 11.133 Districts and Special Districts Total Mandatory property’s value

Surviving Spouse
of First Responder
Killed or Fatally
Injured in the Line Cities, Counties, School 100 percent of the
of Duty 11.134 Districts and Special Districts Total Mandatory property’s value

Property Tax Exemptions — 17

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Texas Comptroller of Public Accounts

Publication #96-1740
February 2018