The Public Math

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Taxes on business equipment: the new $125,000 break (DRAFT – not published)

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In short

Businesses pay property tax on things they own and use, like tools, computers and stock.1 Since 2026, the first $125,000 at each place is not taxed.2 In the Leander ISD area, about $207 million of value fell under this new break in 2026.3 Many small shops may not need to file a list each year now.1

How it works

  • What is taxed: Things a business owns and uses to make money, like tools, machines, computers, furniture and stock for sale.1
  • The yearly list: A business must send the appraisal district a list of this property, called a rendition. It is due April 15. The business can ask for more time, to May 15.1
  • Late or missing list: The penalty is 10% of the tax on that property.1
  • The new break: Since Jan. 1, 2026, the first $125,000 of value at each location is not taxed by each local body.2 The Legislature passed this in 2025 (House Bill 9).2
  • Less paperwork: A business that believes its property is worth $125,000 or less can file once to say so, and then stop filing each year until its owner changes.1

How big it is here (2026)

Amount
Leander ISD area: business property value$1,316,208,296
Leander ISD area: value under the new break$207,237,333

Source: appraisal district certified values, 2026 (columns PersonalValue and HB9, Leander ISD row).3 We do not give a county total for the new break, because one school-district row does not add up (see below).

A countywide total we do not trust yet. If you add up every school district’s business property for 2026, you get about $7.0 billion, down from about $9.0 billion in 2025. But almost all of that drop comes from one row. Round Rock ISD’s business property falls from about $2.9 billion to about $1.4 million. That same row says about $330 million of business property got the new break. A district cannot exempt more than it has, so that row looks incomplete. Leave Round Rock ISD out of both years, and the rest of the county goes up, not down. (Our math.)3 The appraisal district’s 2026 annual report does not give a business property value total.4 So we do not use the $7.0 billion figure.

What it costs

  • Statewide: The state’s budget office guessed that, if cities, counties and special districts kept their rates the same, their tax bills would fall by $442 million in the 2027 budget year. It guessed school districts would lose about $340 million, with the state covering part.5
  • This county: No one has published what the break costs the county. We tried to work it out, but the appraisal district’s spreadsheet has a school-district row that does not add up (see above). So we do not give a number.3
  • Leander ISD and the City of Leander: We found no published dollar amount for either one.

The other side

  • Supporters say it saves small shops time and money. Many owed little tax but still had to file every year.
  • Critics say local bodies lose some tax base. Then others, such as homeowners, may carry a larger share, or the state may make up part of it for schools.
  • Big firms still pay. Only the first $125,000 at a location is exempt. A large plant or store still pays tax on the rest.2

Questions to ask

  • Has the appraisal district reported how many businesses stopped filing?
  • Why does one school district’s business property row look incomplete, by the appraisal district’s account?

What you can do

  • If you own a small business, check with the appraisal district whether you still need to file each year.
  • If your equipment is worth more than $125,000, the list is due April 15.1

Changes to this page

  • Nov. 2, 2026: We changed wording so it says no more than our sources show.
  • Nov. 2, 2026: Added questions to ask.

What we still don’t know

  • An official dollar amount for what the county, the city or Leander ISD lost from the new break.
  • How many businesses stopped filing.
  • Why one school district’s 2026 business property row looks incomplete. We have asked no one yet; this would be a question for the appraisal district.

Numbers marked “our math” are our estimates, not official figures. The notes show the inputs and the steps.

Footnotes

  1. Texas Tax Code §22.01 (rendition, including the one-time filing under $125,000), §22.23 (April 15 due date, extension to May 15) and §22.28 (10% penalty). Saved copy. https://statutes.capitol.texas.gov/Docs/TX/htm/TX.22.htm ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  2. Texas Tax Code §11.145 (income-producing personal property, $125,000; amended by H.B. 9, 2025, effective Jan. 1, 2026). Saved copy. https://statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm ↩ ↩2 ↩3 ↩4

  3. Williamson Central Appraisal District, Certified Values 1999–2026 spreadsheet (PersonalValue and HB9 columns; Taylor ISD 3.13 rows left out). Saved copy. https://www.wcad.org/historical-data/ ↩ ↩2 ↩3 ↩4

  4. Williamson Central Appraisal District, 2026 Annual Report (account counts and the HB 9 summary; no value totals for business property). https://www.wcad.org/wp-content/uploads/2026/10/2026-Annual-Report.pdf ↩

  5. Legislative Budget Board, Fiscal Note for H.B. 9 (enrolled), 89th Legislature, Regular Session, 2025: local levies down $442.0 million in fiscal 2027 if rates are not raised; school district loss $339.6 million in fiscal 2027. https://capitol.texas.gov/tlodocs/89R/fiscalnotes/pdf/HB00009F.pdf ↩

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