Applying for Prop 2 Child Care Facility Property Tax Exemptions

Important reminder: The application period to apply for the Child Care Facility Property Tax Exemption for Tax Year 2026 is from Jan. 1 – March 1, 2026. If you received Child Care Facility Property Tax Exemption for Tax Year 2024 or 2025, in Harris County, you must reapply in order to be eligible for Tax Year 2026.

Applications will be available January 1, 2026

Early Childhood Education in Harris County

Expanding access to high-quality early childhood education has been a top priority of Judge Lina Hidalgo since she took office in 2019. Under her leadership, Harris County invested more than $149 million in temporary American Rescue Plan funding toward expanding access to high-quality early childhood education. As Judge Hidalgo looks to permanently improve the availability and quality of early childhood education in Harris County, she is proud to support a 100% property tax exemption for qualifying childcare providers under Proposition 2 (Prop 2).

Background on Proposition 2

In 2023, Texas voters approved the constitutional amendment allowing cities and counties the option to provide a property tax exemption to qualifying child care providers. Following the statewide passage of Prop 2, Harris County Commissioners Court unanimously adopted a 100% property tax exemption that qualifying child care providers can apply for.

Please note that these exemptions do not apply to property taxes collected by the Harris County Flood Control District, Harris County Hospital District, or the Port of Houston Authority.

Eligibility Requirements for Child Care Facility Property Tax Exemptions

To be eligible for property tax exemptions under Prop 2, child care facilities must:

  • Participate in the Texas Workforce Commission’s Texas Rising Star Program, and
  • Maintain a minimum 20% enrollment of children receiving subsidized services through the Texas Workforce Commission. 

If you believe you qualify, you must submit an application (Form 50-844) and include documentation verifying you meet both of the above requirements.

  • If you rent your facility, you must submit both Form 50-844 (the application) as well as Form 50-845 (child care facility exemption affidavit) to be completed by a property owner leasing property to a child-care facility. 

Application and Affidavit Forms to Claim the Exemptions

Qualifying providers can apply for the Child Care Facility Property Tax Exemption between Jan. 1, 2026 - March 1, 2026 either electronically or physically. The application and affidavit will be available on the Harris Central Appraisal District (HCAD) website.

If you are a qualifying provider who applied for and received the property tax exemption for Tax Year 2025 and/or Tax Year 2025, you must reapply to receive the exemption again for Tax Year 2026. If you are approved, this exemption will apply to Tax Year 2026 and each year thereafter, unless changed by a future Commissioners Court vote. 

If you are unable to apply online, you can also provide a physical application by mailing OR delivering the application and affidavit (if applicable) to the following address by March 1st, 2026. The form(s) must be printed and signed: 

Harris Central Appraisal District
13013 Northwest Freeway
Houston, Texas 77040-6305

HCAD will mail notices of appraised values to all entities that pay property taxes in the late spring. If HCAD determines from your application that you are eligible to receive the property tax exemption, you will see the Harris County property tax exemption applied to your property tax bill. 

Eligible facilities located within the Houston city limits will only need to submit one application and affidavit (if applicable) to claim both the City of Houston and Harris County exemptions.

Child care facilities must print out the application and affidavit (if applicable), available below in English, Spanish, Vietnamese, Mandarin, and French.

What to Know If You’re a Child Care Provider That Rents Your Facility

State law requires that property owners pass on all savings to the child care provider(s) that rent their facilities. For properties taxed as a single entity but subdivided for tenants, the law states that only the square footage used for child care may be used to calculate the tax exemption by the local appraisal district.

By submitting form 50-845 (the affidavit), property owners are required to do the following:

  1. Provide the child care provider with a disclosure document stating:
    1. The amount of property taxes the property owner is saving as a result of the exemption; and
    2. How the property owner will ensure that rent charged to the child care provider is reduced to equally match the exemption reduction.
  2. State the amount they are reducing in rent charged to the child care provider.
  3. Certify that the total rent charged to the child care provider is not higher than the average rental costs for child care facilities.
  4. Certify that the total rent charged to the child care provider is similar to that of other tenants leasing a similar space.

Documentation Needed to Apply for the Exemptions

Applicants must include the following documents with their application:

  1. Documentation that the child care facility participates in the Texas Workforce Commission’s Texas Rising Star Program as described by Government Code Section 2308.3155.
  2. Documentation that at least 20% of children enrolled in the child care facility receive subsidized child care services provided through the child care services program administered by the Texas Workforce Commission.
  3. For a property owner leasing the property to a qualifying child care facility, Form 50-845 (the affidavit) certifying that the property owner has provided to the child care facility a disclosure in accordance with Tax Code Section 11.36(f).

Confirmation That Exemptions Were Applied and the Reapplication Process

Later this spring, HCAD will mail notices of appraised values to all entities that pay property taxes. These notices will show the exemptions granted during the 2026 tax year. If found to be eligible for the exemptions by HCAD, child care facilities who submitted a complete application will see the City of Houston and Harris County property tax exemptions applied to their property tax bill.

Once the child care exemption is granted, an application does not need to be resubmitted annually unless the property’s ownership changes or qualifications for the exemption change. The chief appraiser may require a new application to confirm eligibility by sending a written notice and an application. 

Questions?

For questions regarding this exemption and the application process, please contact the Harris Central Appraisal District (HCAD) using one of the following methods.

  • Online web form: Click here
  • By phone: (713) 957-7800
  • In person: Make an Appointment with HCAD’s customer service team Monday through Friday, 8:00AM - 5:00 PM