Buying Exempt Land in Texas

Key Takeaways: 

• Some land may qualify for tax exemption based on its capacity for agriculture, timber, or wildlife habitat.
• Understanding this exemption is important, as you’ll need to maintain the land’s valuation after you purchase it. This will help you avoid rollback property taxes, which can be expensive.
• Agriculture and wildlife valuations are different, and you may have to create and execute a wildlife plan for the latter.
• Working with a real estate agent experienced with rural land can help avoid any issues.

This content has been updated as of March 2026. 

When you’re looking to buy land, it’s important to research whether the property is under an agricultural land valuation — often referred to as a tax exemption. It sounds like a no-brainer, but this research is often overlooked.

Ag valuations allow for agricultural landowners’ property taxes to be calculated based on its capacity to produce crops, livestock, qualified wildlife, or timber — not its market value.

When you purchase a property under an ag valuation, you’ll have to maintain that exemption. It doesn’t automatically transfer for you.

How to claim an ag exemption in Texas

Apply for the valuation with your local tax appraisal district. If you fail to apply, then the district finds out in a year or two you didn’t maintain that agricultural use, they’re going to bill you for rollback property taxes.

Rollback tax is the difference between the taxes paid on the land’s agricultural value and the taxes that would have been paid if the land had been taxed at a higher market value. Interest can also be charged for each year from the date the taxes were due. Rollbacks can get expensive, fast.

Other tax exemptions for land in Texas

You’ll also want to understand the difference between an ag exemption and wildlife valuation. You can get a wildlife valuation for maintaining and improving the habitat for wildlife in some way. Anything from bird watching to a hunting ranch could qualify.

This valuation requires a yearly wildlife plan that has to be approved by the appraisal district. It’s not hard, but it does take a little effort to apply.

The process to qualify for an ag or wildlife valuation will vary from county to county, so spend some time with the local appraisal district where your land is located.

Get expert support for buying exempt land

Most importantly, find a real estate agent well versed in rural land to help you in the buying process. The realtor you select should absolutely know how to determine if the property has an ag valuation or not.

And, of course, we are always here to help you through your journey. We’re not just a lender – we’re a resource. So don’t hesitate to give us a call.

Frequently Asked Questions

How many acres do you need to be ag exempt in Texas? Are there other requirements?

The overarching guideline is the land must have been devoted exclusively to or developed continuously for agriculture during the past five years. Another general rule of thumb is you need at least 10 acres, but even that varies by county. Check with your local appraisal office.

Is an ag exemption worth it in Texas? How much could it save?

The potential savings for landowners who qualify for an ag exemption depends on several factors, so there’s no easy formula to apply. Savings depend on property location, market value, tax rates, and the land’s appraised productivity value. 

But in general, since the land is taxed at a lower valuation than typical property, you’ll see long-term tax savings of hundreds or even thousands of dollars per year.

How do you get an ag exemption?

To get an ag exemption, your land must meet specific criteria regarding size and agricultural usage. Criteria may differ among counties, but a common requirement is the land’s primary purpose for the past five years has been crop production, beekeeping, livestock, or related agricultural functions.