Does a Texas ag exemption transfer to the new owner automatically?

Not the way most buyers assume. The 1-d-1 valuation attaches to the land, not to you, so under Tax Code 23.54 the open-space valuation can continue after a sale. The new owner generally must file a new 1-d-1 application in their own name, and many appraisal districts require a new application after a change of ownership. Check your appraisal district.

How far back does a Texas ag rollback go?

Under Tax Code 23.55, a rollback recovers the difference between the tax paid on the productivity value and the tax that would have been paid on market value for the three preceding tax years. Under current law there is no base interest added to that difference. Ordinary Chapter 33 delinquency charges can apply only if the later rollback bill goes unpaid.

Does buying ag land trigger a rollback in Texas?

A change of ownership by itself does not trigger a rollback. A change in use does. If you keep the qualifying agricultural use going and file on time, you generally keep the valuation. If the use later changes to a nonagricultural use, Tax Code 23.55 lets the appraisal district recover the previous three years of tax savings. Not legal or tax advice, and any rollback is determined by your county.

Does a Texas ag exemption transfer when you buy land?

It is one of the most common misreads in a rural land deal. Here is what really happens to the valuation after a sale, and the rollback to weigh before you change how the land is used.

Does an ag exemption transfer to a new owner?

Not automatically. The ag valuation, the lower taxable value that keeps the tax bill small, belongs to the land, not the person. It can continue after a sale, but the county will not simply move it into your name. You must file a new application yourself, usually by April 30. And if the land later stops being used for agriculture, the county can charge back the tax that was saved over the three years before the change.

Last verified July 2026. Source: Texas Tax Code 23.54 and 23.55.

What happens when the land changes hands

When ag-valued land is sold, the lower ag value does not automatically jump back up to market value, and it does not automatically become yours either. It can carry over, but you generally need to file a new application in your own name, and many counties require one after the land changes hands.

If you keep the farming or grazing going and file on time, you generally keep the lower value. If you let it lapse, you put it at risk. Deadlines and rules vary by county, so check your appraisal district. Not legal or tax advice, and approval is up to your county.

The rollback risk

If land with an ag valuation stops being used for agriculture, the county sends what is called a rollback bill. For each of the three years before the change, the county figures out what the tax would have been without the ag valuation and bills the difference. Under current law there is no extra interest on that bill. If the bill itself goes unpaid, normal late-payment penalties apply, like any property tax.

A change in ownership does not by itself cause a rollback, but a change in use can. That is the real thing to weigh before you stop farming or grazing. Not legal or tax advice, and any rollback is determined by your county appraisal district.

Texas rollback tax calculator

Get a rough, statewide-typical range for what a rollback could cost. It uses general ranges, not your county numbers, so treat it as a ballpark, then confirm the real figure with your appraisal district.

Estimate a rollback

A rough idea of what a rollback bill could look like if the land stopped being used for agriculture. Estimate only.

Estimate only, based on typical Texas figures. Your county may have different numbers, and your appraisal district sets the actual amount. Not legal or tax advice.

Not legal or tax advice. Approval and any rollback are determined by your county appraisal district.

Know what you are buying

Before you close, it helps to see what the county already has on file for the parcel, from public appraisal district records, so you know the valuation you are inheriting and what it takes to keep it.

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