Business personal property · Texas
Business Personal Property Tax in Texas
Texas taxes the equipment, furniture, machinery, and inventory your business uses to earn income. No savings, no fee.
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What Is Business Personal Property (BPP)?
BPP stands for business personal property. In Texas, it’s the physical property a business owns and uses to produce income that isn’t part of the real estate. Common examples are office furniture, computers, machinery, tools, equipment, business vehicles, and inventory.
Intangible property, like goodwill, patents, trademarks, and accounts receivable, is not taxed as business personal property in Texas.
How Texas Taxes Business Personal Property
Business personal property is taxed like real estate: the appraisal district sets a value as of January 1, and each taxing unit applies its tax rate to that value. The difference is where the value comes from.
Renditions.
Each year, businesses report their property to the appraisal district on a rendition. The rendition is due April 15. You can request an extension to May 15 in writing. Missing the deadline can add a penalty of 10% of the taxes owed.
The district’s estimate.
If you don’t render, the district estimates your value from its own records, prior years, or a field inspection. Estimates tend to run high, and they’re harder to correct after the fact.
Depreciation schedules.
Districts typically value equipment and furniture by applying standard depreciation to its original cost. Standard schedules don’t know your equipment is idle, obsolete, damaged, or already gone.
The $125,000 BPP Exemption
Last reviewed September 2026
Starting with the 2026 tax year, Texas exempts $125,000 of the value of business personal property at each location in a taxing unit. It replaced the old exemption for property worth less than $2,500. The appraisal district applies it; you don’t file a separate application.
For many small businesses, that means little or no BPP tax. Above the threshold, the remaining value is still taxed. Related businesses at the same address share one exemption.
Under $125,000, a short certification replaces the full rendition. If the property at a location is worth $125,000 or less, you can certify that on the rendition form instead of listing every asset. That choice stays in place until ownership changes or the value goes over $125,000, and then a full rendition is due again. We file the certification for you, so the district has it on record and doesn’t estimate your value for you.
How We Reduce Business Personal Property Taxes
Rendition preparation and filing.
We review your asset listing, apply the statutory requirements to the rendition, and file it with the county. Every filing is tracked from preparation to confirmation, so it’s timely and defensible.
Removing what you no longer own.
Sold, scrapped, and retired assets often stay on the district’s records for years. We get them off.
Real condition, not a schedule.
Idle, obsolete, and damaged equipment is worth less than a depreciation schedule assumes. We document it.
Inventory.
Inventory is valued as of January 1. We check that the value reflects what was actually on hand, and whether inventory shipped out of Texas qualifies for the freeport exemption.
Location.
Property is taxed where it’s located on January 1. Assets reported at the wrong location can be taxed in the wrong place, or twice.
Protest and hearings.
When the district’s value is still too high, we protest and attend the hearings for you.
Businesses We Help
Retailers with inventory. Restaurants with kitchen equipment. Medical and dental offices. Manufacturers and distributors with machinery. Contractors with equipment and vehicles. Multi-location businesses with property at several addresses. Owners of commercial real estate who also own the furniture and equipment inside it.
Business Personal Property Tax FAQs
Is there a business personal property tax in Texas?
Yes. Texas taxes tangible personal property used to produce income, including equipment, furniture, machinery, and inventory. The first $125,000 of value at each location is exempt starting with the 2026 tax year.
What’s the difference between tangible personal property and business personal property?
In Texas property tax, they mean the same thing: physical property used to produce income that isn’t real estate.
When is the rendition due?
April 15. You can request an extension to May 15 in writing.
Can I protest my business personal property value?
Yes. BPP values can be protested the same way real estate values can, with the same deadlines.
What does it cost?
No savings, no fee. There’s nothing to pay up front.
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