Exemption Guide
Last verified: March 2026Agricultural Exemption
The Texas agricultural exemption reduces your land's taxable value by 70-90% by appraising it on productivity value instead of market value. Most counties require 5-20 acres with at least 5 of the past 7 years in agricultural use. Apply with Form 1-D-1 at your county appraisal district by April 30.
How It Works
What is the agricultural exemption?
The agricultural "exemption" is technically a special-use valuation under Section 1-d-1 of the Texas Tax Code. Instead of your land being taxed at full market value, it gets taxed on its agricultural productivity value - which is almost always dramatically lower.
5 of 7 years ag use
Land must have been devoted principally to agricultural use. Previous owner's use counts if you continue the activity.
Sufficient acreage
Most counties require 5-20 acres. Some like Collin County have no formal minimum. Check your county.
Degree of intensity
Your agricultural activity must be typical for the area. Running 2 cattle on 50 acres where the standard is 1 per 10 won't cut it.
Example
20-acre parcel valued at $500,000 market
Agricultural productivity value: $15,000-$30,000. The difference in your annual tax bill can easily be thousands of dollars.
Qualifying Uses
What counts as agriculture?
Application Process
How to apply
Obtain Form 1-D-1
Get the application from your county appraisal district or the Texas Comptroller's website.
Complete the application
Include details about your land, its agricultural use, and your operation.
Submit by April 30
Late applications may be accepted until the Appraisal Review Board approves records, but don't count on it.
Provide documentation
If requested: receipts for feed, vet bills, equipment purchases, or lease agreements.
Once approved, you don't need to reapply each year. The exemption continues as long as you maintain qualifying use.
Watch Out
Common mistakes and the rollback risk
These issues most commonly cause applications to be denied or exemptions to be revoked.
Insufficient intensity
A few chickens in the backyard isn't agriculture. Your operation needs to reflect the area's standards for commercial use.
Hobby vs. business
If you can't show the activity is conducted with the intent to produce income, it'll be classified as a hobby.
Letting land sit idle
Stop actively using the land for agriculture and you risk losing the valuation - and facing rollback taxes.
Missing the deadline
April 30 is firm. Don't wait until the last week to start your application.
Ignoring county rules
A 10-acre parcel might easily qualify in one county and fall short in another. Always check locally.
Poor documentation
Keep receipts, photos, and records of agricultural activity. If you can't prove it, it's as if it didn't happen.
The rollback risk
If you lose your agricultural valuation - whether by changing land use, selling to a developer, or failing to maintain qualifying activity - you'll owe rollback taxes: the difference between what you paid at the agricultural value and what you would have paid at market value, for the previous 5 years, plus 7% interest per year. On valuable land, this can amount to tens of thousands of dollars.
Read the full rollback penalty guideCommon Questions
Frequently asked questions
How many acres do I need for an ag exemption in Texas?
There is no single statewide minimum. Most counties require between 5 and 20 acres, and some (like Collin County) have no formal minimum at all - they evaluate based on the intensity and degree of agricultural use. Check your specific county's requirements using our county lookup tool.
Can I get an ag exemption on residential property?
Yes, if your property meets the agricultural use requirements. The portion of land used for agriculture can qualify even if you have a home on the property. However, the homesite itself (typically 1-2 acres around the house) is excluded from the agricultural valuation.
How long does land need to be used for agriculture to qualify?
Land must have been devoted principally to agricultural use for at least 5 of the preceding 7 years. If you recently purchased the land, the previous owner's agricultural use counts toward this requirement as long as you continue the agricultural activity.
What happens if my ag exemption application is denied?
You can protest the denial with your county's Appraisal Review Board (ARB). The protest must be filed within 30 days of receiving the denial notice. Common reasons for denial include insufficient acreage, lack of documented agricultural activity, or failure to meet the intensity standards for your county.
Do horses qualify for an ag exemption in Texas?
Horses used for breeding or as working animals on a ranch qualify. Horses kept primarily for recreational riding, showing, or racing generally do not qualify. The key distinction is whether the horses serve an agricultural purpose or a personal one.
What is the easiest way to get an ag exemption in Texas?
Beekeeping is widely considered the easiest and cheapest path. Most counties require just 6 hives on 5-20 acres. Startup costs run $1,500-$3,000, annual maintenance is $200-$500, and you can hire a beekeeper to manage the hives for you. Compare that to the fencing, equipment, and livestock costs of a cattle operation.
Other Exemption Types
Explore other options
Check your county
Rules vary by county. Find local requirements and contacts.
Estimate your savings
See how much this exemption could save you annually.