Exempt Property and Income in Texas

In Texas, exempt property covers what you need to live on.

Here’s a brief list of the major categories of exempt property:

- Your "homestead", which is a house and up to 10 acres of land in an urban property (single or family) or a house and up to  100 acres of rural property (land) for a single person and 200 acres for a family in a rural area under Texas Property Code §41.002.

-  Personal property adding up to $50,000 for a single person or $100,000 for a family.

-  Vehicles — one for each licensed driver in the house.

-  Tools of your trade, sporting equipment, bicycles, two firearms, two horses, 12 head of      cattle and other items, farming or ranching vehicles, clothes, and pets.

-  In general, IRAs, 401(k)s, traditional pension plans, profit-sharing plans, annuities.

-  Life insurance proceeds.

-  College savings plans, such as 529 plans, and prepaid tuition plans.

A list of exempt personal property can be found in the Texas Property Code Section 42.

Some exempt income includes:

• Social Security or Social Security Disability Income
• Benefits for Veterans & Public Assistance
• Retirement and Vocational Rehab
• Worker’s Compensation
• Unemployment
• Court-Ordered Child Support and Spousal Support

Wages that have not yet been paid (a/k/a current wages) cannot be taken to pay a judgment in Texas except to pay court-ordered child support, spousal maintenance, federally guaranteed student loans in default, or federal income taxes owed. However, once wages are deposited in a bank account, they are subject to garnishment, or seizure, by a creditor.

Everything that is not considered exempt is up for grabs by creditors, like jewelry or a boat, for example.