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Rollback taxes on wildlife and ag land, explained

Updated November 1, 2026 · by Adam McLaughlin

Rollback tax is the bill that can come due when land with a 1-d-1 open-space valuation (agricultural or wildlife management) changes to another use. Here's how it works today.

What triggers it

A change of use: the land stops being used for agriculture or wildlife management, for example when it's developed, built on or turned into a use that doesn't qualify. If only part of a tract changes use, rollback applies only to that part. Claiming land as part of your residence homestead doesn't by itself count as a change of use.

How much it is

• The difference between the taxes you paid under the open-space valuation and the taxes you would have paid at market value,
• for each of the three years before the year the use changed.

Texas cut the look-back from five years to three in 2019, and in 2021 removed the interest that used to be added. Penalties and interest now apply only if the rollback bill isn't paid on time.

An example

Say 100 acres has a market value of $8,000 an acre and a productivity value of $150 an acre, with a combined tax rate of 1.8%. The yearly difference is 100 × ($8,000 − $150) × 1.8% = $14,130. Three years of that is about $42,390. Your numbers will differ; try them in our savings calculator.

Losing the valuation without a change of use

If your appraisal district decides your land is no longer being used for wildlife management, for instance because you can't show the practices in your plan, it can remove the valuation and you'll be taxed at market value from then on. Whether rollback also applies depends on your situation, so talk with your district or a property tax professional. The best protection is simple: do your practices and keep dated proof every year.

More guides: How to file the annual report (PWD-888) · The 7 wildlife practices, with examples · Writing your wildlife plan (PWD-885) · Converting ag to wildlife · Minimum acreage when land is split

Sources

• Texas Tax Code §23.55, Change of use of land
• HB 1743 (2019) bill analysis: five years to three
• HB 3833 (2021) bill analysis: rollback interest removed

This is general information, not legal or tax advice. Your appraisal district and a property tax professional can tell you what applies to your land.

Common questions

How many years of rollback tax are owed in Texas?

Three years. For a change of use, the additional tax is the difference between the open-space taxes and market-value taxes for each of the three years before the year of the change.

Is interest added to rollback taxes?

Not since 2021. Interest and penalties apply only if the rollback tax becomes delinquent.

Does missing the annual report cause rollback?

Rollback is triggered by a change of use. Missing a report your district requires can cost you the valuation going forward, so check with your district about your situation.