Conservation Easement Tool
|Last verified: August 6, 2026Tax deduction calculator
Estimate how much you could deduct from federal income taxes by donating a conservation easement on your Texas property.
The 100% limit has two requirements, not one. More than 50% of your gross income must come from farming, and under IRC 170(b)(1)(E)(iv) the contribution must be subject to a restriction that the property remain available for agricultural or livestock production. Miss the second one and the limit is 50%.
Estimated federal deduction
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Enter your property values and income above to see your estimate
Conservation Value
Deduction Limit
Both limits are keyed to your contribution base, not raw AGI, and both are net of your other charitable contributions. IRC 170(b)(1)(E)(i) allows the easement only to the extent it does not exceed the limit minus all other charitable contributions allowed that year. This estimate ignores your other giving, so it runs high if you donate elsewhere.
This calculator provides estimates based on federal IRS guidelines for qualified conservation contributions under IRC Section 170(h). Actual deductibility depends on a qualified appraisal, IRS Form 8283, and your specific tax situation. Tax savings are estimated at a 25% marginal federal income tax rate. The estimate does not model your other charitable contributions, the 0.5% of AGI itemized charitable floor reported to start in 2026, or the IRC 170(h)(7) basis limit that applies when the land is held by a partnership, LLC, or S corporation. Consult a qualified tax professional and conservation attorney before making donation decisions.
How the calculator works
The "before and after" method
Your deduction equals the difference between your land's fair market value before the conservation easement restrictions and its value after. The "before" value reflects the highest and best use (often subdivision or development potential). The "after" value reflects the restricted use (typically agricultural or recreational). A qualified appraiser determines both values.
AGI limits and carryforward
The IRS limits how much you can deduct each year. Standard taxpayers can deduct up to 50% of their contribution base (adjusted gross income computed without any net operating loss carryback). Qualified farmers and ranchers can deduct up to 100%, but only when both halves of the test are met: more than 50% of gross income from farming, and a contribution subject to a restriction that the property remain available for agricultural or livestock production, per IRC 170(b)(1)(E)(iv). Any unused deduction carries forward for up to 15 additional years, giving you 16 years total to absorb the full value.
One limit this tool does not model: both percentages are net of your other charitable giving. IRC 170(b)(1)(E)(i) allows the easement only to the extent it does not exceed the applicable percentage of your contribution base minus all other charitable contributions allowable that year. If you give meaningfully elsewhere, your real year-one deduction is smaller than the estimate below.
What you need for an accurate estimate
- Pre-easement value: What your property would sell for at its highest and best use (with development potential). A local appraiser or your county appraisal district's market value can be a starting point.
- Post-easement value: What your property would be worth with the conservation restrictions in place. This is typically close to its agricultural or recreational use value.
- Your AGI: Your adjusted gross income from your most recent tax return (Form 1040, line 11).
- Qualified farmer status and deed restriction: The 100% limit requires both that more than 50% of your gross income comes from farming and that the contribution is subject to a restriction keeping the property available for agricultural or livestock production. Pick the option that describes your deed. If the restriction is not in the deed, the limit is 50%.
This calculator does not account for ownership structure. If the land is held by a partnership, LLC, or S corporation, IRC 170(h)(7) can disallow the contribution entirely regardless of these numbers. See the entity-owned land section before relying on any figure here.
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Not tax or legal advice
This page is general information for Texas landowners. It is not tax or legal advice and it does not create a professional relationship. Whether a conservation easement deduction survives depends on your deed language, how the land is owned, and the facts on your own return. Have a CPA or a tax attorney review your situation before you file.
Federal conservation easement rules have moved three times in recent years. SECURE 2.0 Act section 605 (December 2022) added the partnership and S corporation basis limit now at IRC 170(h)(7). Treasury re-identified syndicated conservation easements as listed transactions by final regulation effective October 8, 2024. And a 0.5% of AGI floor on itemized charitable deductions is reported to apply starting in 2026. The current edition of IRS Publication 526 predates that floor, so confirm it and its effect on your carryforward with your own advisor. It is not built into this site's calculator.
Reviewed as of August 6, 2026.