In 2023, Texas passed Proposition 2, which allows city and county officials to provide a tax exemption of to childcare centers serving low-income families.

The City adopted the exemption on March 26, 2024 for eligible childcare providers. 

Providers have until April 30 to apply and qualify for 2024 savings at Tarrant Appraisal District. This is a statutory deadline set forth by the Tax Code sec. 11.43(d).

Why is property tax relief important for childcare providers?

After staffing costs, facilities are the second most expensive part of running a
childcare center. Property tax relief for childcare centers will help centers stay afloat without passing costs on to the working parents they serve.

What are the eligibility criteria?

To be eligible for a property tax cut, childcare providers must participate in the Texas Workforce Commission’s childcare scholarship program for working parents. Providers must maintain enrollment of at least 20% of scholarship kids to be eligible.

Are childcare providers that are single location, small businesses eligible for tax relief? 

Yes. Childcare providers in Texas come in all sizes. Some providers are large corporations operating childcare centers in multiple places around Texas. Other childcare providers are small “mom and pop” businesses owned by Texans. With the exception of home-based facilities, all types of providers
are eligible for tax relief.

Learn more about the implementation of Child Care Property Tax Relief, visit ChildCareTaxRelief.com