Texas business owners got meaningful property tax relief this year. House Bill 9, passed by the Legislature in 2025 and approved by voters as Proposition 9 in November 2025, raised the exemption for business personal property from $2,500 to $125,000. The change applies beginning with the 2026 tax year.

What Is Business Personal Property?

Business personal property is the income-producing property a business owns other than real estate: inventory, furniture, computers, tools, machinery, and equipment. In Texas, this property is appraised every year by the local appraisal district and taxed by local taxing units.

What Changed

• Up to $125,000 of income-producing personal property is exempt, up from $2,500.
• The exemption generally applies to each business location within a taxing unit, so a business with more than one location may receive more than one exemption.
• Property a business leases to others, and property kept at a site the owner neither owns nor leases, may qualify for its own exemption.
• Related businesses operating together at the same location must combine their property values, so splitting one operation into several entities will not multiply the exemption.

Do You Still Need to File a Rendition?

A rendition is the annual report of business personal property filed with the appraisal district, usually due April 15. Under HB 9, a business must still render if the value of its property at a location exceeds $125,000. If you reasonably believe your property is worth less than that, you may file a short certification instead. That election stays in place from year to year until ownership changes, although the chief appraiser can still require a full rendition.

Who Benefits Most

Small and family-owned businesses with modest equipment and inventory may now owe no tax on that property at all. Larger businesses benefit as well, since the first $125,000 at each location comes off the taxable value.

Plan Ahead for 2027

Renditions for the 2027 tax year will be due in the spring. Now is a good time to confirm that your business records, location information, and entity structure are in order so that you can take full advantage of the exemption.

If you have questions about how HB 9 applies to your business, or need help with business formation, contracts, or disputes, contact the Law Offices of M. Cody Moore at (281) 241-7161.

This post provides general information and is not legal advice. Reading it does not create an attorney-client relationship.