Houston Skyline

Freeport Tax Exemptions

Texas allows businesses to export some goods without taxing them: a freeport exemption.

A brief summary of the freeport exemption:

  • Select Houston area taxing jurisdictions exempt personal property taxes on stored goods, goods in process, or raw material.

  • Two types of merchandize remain ineligible for the freeport exemption

    • oil, gas, and petroleum products

    • aircraft or repair parts used by a certificated air carrier.

  • Goods must Texas leave within 175 days after they are acquired or arrive

  • Goods must be in Texas for assembling, storing, manufacturing, repair, maintenance, processing or fabricating purposes.

For more information on the genesis of this program and how to apply for a freeport exemption:

Texas Government

Harris County Appraisal District