Agricultural Exemptions

Texas offers an agricultural exemption (commonly called an "ag exemption") that significantly reduces the taxable value of land used for qualifying agricultural purposes. The exemption is based on the productive value of the land rather than its market value which can reduce property taxes dramatically on larger tracts.

Qualifying uses include livestock, hay production, beekeeping, wildlife management, and others. The specific requirements vary by county appraisal district. If you're purchasing a property with an existing ag exemption, verify that you can maintain the qualifying use.

• Livestock (cattle, horses, goats, sheep)
• Hay production
• Beekeeping (minimum 5 acres in most counties)
• Wildlife management (requires prior ag use)
• Orchard or vineyard production

Rollback Taxes

If a property with an ag exemption is converted to non-agricultural use, the owner is subject to a rollback tax the difference between taxes paid under the ag exemption and what would have been paid at market value, going back up to 5 years, plus interest.

Always understand the rollback tax exposure before purchasing a property with an ag exemption, especially if you plan to develop or subdivide the land.

Wells

Properties outside city water service areas rely on private wells. Well water quality and quantity vary by location and geology. Always have a well inspected and tested before purchasing.

Well testing should include bacteria, nitrates, and other contaminants relevant to the local geology. A flow test verifies adequate water production for household use.

• Water quality test (bacteria, nitrates, minerals)
• Flow test (gallons per minute)
• Well age and condition
• Pump condition and age
• Pressure tank condition

Septic Systems

Properties without access to municipal sewer use septic systems. Septic systems have a finite lifespan and require periodic maintenance. Always have a septic system inspected and pumped before closing.

Aerobic septic systems (common in Texas) require more maintenance than conventional systems they have mechanical components that need regular service and the spray heads must be maintained.

Horses and Livestock

If you plan to keep horses or livestock, verify that the property's deed restrictions and county regulations permit it. Many rural subdivisions have deed restrictions that limit or prohibit livestock.

Minimum acreage requirements for horses vary. A general guideline is 1–2 acres per horse, but this depends on the quality of the pasture and your management approach.

Barns and Outbuildings

Barns, workshops, and other outbuildings add value and utility to acreage properties. When purchasing a property with existing outbuildings, verify that they were permitted (if required) and are in good condition.

Building permits for outbuildings in rural areas vary by county. Some counties have minimal permitting requirements; others are more stringent.