As a property owner, you should be aware of which properties you own that are exempt under Texas law. Fortunately that information is readily accessible to you and may be discerned through the reading of chapters 41 and 42 of the Texas Property Code. Real property is discussed in chapter 41, and personal property is reviewed in chapter 42.



Only two types of real property are exempt in Texas: cemetery plots and homesteads. Cemetery plots are relatively straightforward; however there are some limitations on what makes a homestead: A homestead may be claimed by either single adults or families can be rural or urban and, if urban, can be used both as a home and business. An urban homestead may have up to ten acres on one or more lots, while a rural homestead is limited to 200 acres for a family. For a single individual, the same boundaries apply for urban but are lessened to 100 acres for rural homesteads.

Further certain liens may apply to homesteads, despite their exemption under the Property Code. These liens are typically for purchase money, for taxes due on the property or for work and materials needed for property improvements agreed upon through a written contract. Additionally, if a homestead is sold the proceeds from the sale is only exempt for six months following the transaction.

Through chapter 42, again, there are only two types of exemptions: an aggregate exemption and an unlimited exemption. An aggregate exemption is for specific types of personal property and is limited by the value of said property. For example, if the property does not value more than $60,000 for a family or $30,000 for a single adult, it may be eligible for an aggregate exemption. If the property exceeds either bracket, he or she must choose which items are exempt and which are not. These items may only include: home furnishings and family heirlooms; provisions for consumption; farming/ranching vehicles and implements; tools, equipment, etc. used in one’s profession; jewelry valuing no more than 25 percent of the exemption; clothing; two firearms; sporting equipment; cars - one for each member of the family with a driver’s license; horses, mules, donkeys, 12 cattle, 60 of other livestock and 120 fowl; and household pets.

For property not included in the aggregate exemption, an unlimited exemption may be sought. This type of exemption does not take value into account and covers current wages; health aids; and alimony or similar types of support.

Exemption may also apply to certain funds such as college funds or retirement plans. Additionally there are humanitarian exemptions and exemptions for public benefit programs applying to police officers, fire fighters, judicial system employees, educational system employees, and state, county and municipal employees. To know exactly which exemptions apply to you access the Texas Property Code and review chapters 41 and 42. It is best, in these types of situations, to be as informed as possible, so you do not lose more than you must and that you save all that you can.

Source: http://www.13network.com/hupdocs/HUPexemptproperty05.pdf