The Texas Ag Valuation (1-d-1): How Landowners Legally Cut Property Taxes
By The Boraak Team · September 27, 2026 · 6 min read
The short answer
Texas doesn't have an 'ag exemption' exactly; it has special agricultural (1-d-1 open-space) appraisal. If land has been used primarily for qualifying agriculture at the intensity typical for the area for at least 5 of the preceding 7 years (5 continuous years inside city limits), it can be taxed on its productivity value, which is usually far lower than market value. You apply with the county appraisal district.
What counts as agricultural use
Common qualifying uses include grazing livestock, growing crops, hay production, orchards and beekeeping (with its own rules), and in some cases wildlife management on land that already had ag valuation. The key is intensity: the use has to be at the level that's normal for your county. Two sad goats on 30 acres may not impress the appraiser.
The history rule: 5 of the last 7 years
Outside city limits, the land must have been in qualifying agricultural use for at least 5 of the preceding 7 years. Inside city limits, it's 5 continuous years. If you buy land that already has ag valuation and keep the use going, the history usually carries over.
Minimum acreage
State law doesn't set one number. Each appraisal district publishes guidelines by use (for example, a minimum size for grazing or hay). Look up your county's ag guidelines before you buy.
The rollback: read this before changing the use
If land with ag valuation changes to a non-agricultural use (say you build a subdivision), a rollback tax can apply: the difference between the ag and market-value taxes for recent years, plus interest. Ask the seller and the appraisal district before you plan big changes.
Quick questions
How many acres do you need for an ag exemption in Texas?
There's no single statewide number. Each county appraisal district sets guidelines by type of use, so check your county's ag guidelines.
Can I get ag valuation on land I just bought?
If the land already has ag valuation and you continue a qualifying use, usually yes (you may need to file a new application). If it doesn't, the history requirement applies.
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General information, not legal, tax or financial advice. Rules and numbers change; check with a Texas professional for your situation.