Is Embezzlement a Felony in Texas? Theft, Forgery and Penalties

Embezzlement is a crime in Texas, but it is charged as theft: Penal Code 31.02 merged the old offense into theft under Section 31.03. Under the theft value tiers, it is generally a felony at $2,500, though prior theft convictions and the enhancements in Section 31.03(f) can make a smaller theft a felony. A fiduciary who misapplies property in a way that risks loss commits a separate offense under Section 32.45, and forgery under Section 32.21 is a state jail felony by default for offenses committed on or after September 1, 2025. For other states, see our guide to embezzlement and forgery laws by state.

Information last verified on 2026-10-17. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers the Texas Penal Code provisions that reach embezzlement and forgery: the theft consolidation and theft offense (Sections 31.02, 31.03 and 31.09), misapplication of fiduciary property (Section 32.45), financial abuse and exploitation of elderly individuals (Sections 32.55 and 32.53), abuse of official capacity (Section 39.02), forgery and related offenses (Sections 32.21, 32.22 and 32.24) and issuance of a bad check (Section 32.41), plus the matching charging deadlines and the civil Theft Liability Act. It does not cover the full theft value table (see Texas theft laws), identity theft, scams and victim reporting (see Texas scam and fraud laws), or federal offenses.

Is there an embezzlement law in Texas?

No offense in the Texas Penal Code carries the name embezzlement. The Legislature folded it into theft in one sentence:

"Theft as defined in Section 31.03 constitutes a single offense superseding the separate offenses previously known as theft, theft by false pretext, conversion by a bailee, theft from the person, shoplifting, acquisition of property by threat, swindling, swindling by worthless check, embezzlement, extortion, receiving or concealing embezzled property, and receiving or concealing stolen property." (Tex. Penal Code 31.02)

That means conduct commonly described as embezzlement is covered in Texas by the theft statute and, where the person held the property as a fiduciary, may also fall under the misapplication statute discussed below. Federal law also reaches embezzlement from banks and federal programs and wire or mail fraud schemes; see the embezzlement and forgery laws hub.

How Texas theft law covers embezzlement

Penal Code 31.03 defines the offense:

"(a) A person commits an offense if he unlawfully appropriates property with intent to deprive the owner of property. (b) Appropriation of property is unlawful if: (1) it is without the owner's effective consent; (2) the property is stolen and the actor appropriates the property knowing it was stolen by another; or (3) property in the custody of any law enforcement agency was explicitly represented by any law enforcement agent to the actor as being stolen and the actor appropriates the property believing it was stolen by another."

Two elements do the work in an embezzlement-type case: an unlawful appropriation (for example, one without the owner's effective consent) and an intent to deprive the owner of the property. Having lawful possession first, as an employee or agent does, does not change the name of the offense; Section 31.02 makes it all theft.

Is embezzlement a felony in Texas?

Embezzlement charged as theft is generally a felony when the value is $2,500 or more. Penal Code 31.03(e), which opens "Except as otherwise provided by this section," sets these grades by the value of the property stolen:

• Less than $100: Class C misdemeanor.
• $100 or more but less than $750: Class B misdemeanor.
• $750 or more but less than $2,500: Class A misdemeanor.
• $2,500 or more but less than $30,000: state jail felony.
• $30,000 or more but less than $150,000: felony of the third degree.
• $150,000 or more but less than $300,000: felony of the second degree.
• $300,000 or more: felony of the first degree.

Section 31.03(e)(4)(D) also makes a theft of less than $2,500 a state jail felony if "the defendant has been previously convicted two or more times of any grade of theft," and Section 31.03(e)(2)(B) makes a theft under $100 a Class B misdemeanor after one prior theft conviction.

Other provisions of Section 31.03 set different grades for particular kinds of property and circumstances; the Texas theft laws page covers the full table.

Adding up repeated takings. Many embezzlement cases involve small amounts over a long period. Penal Code 31.09 provides: "When amounts are obtained in violation of this chapter pursuant to one scheme or continuing course of conduct, whether from the same or several sources, the conduct may be considered as one offense and the amounts aggregated in determining the grade of the offense." Chapter 32, which includes misapplication of fiduciary property and forgery, has a matching clause (Section 32.03), and Section 39.02(e) lets separate misuses of government property under one scheme or continuing course of conduct be aggregated in the same way.

One grade higher in listed circumstances. Section 31.03(f) raises an offense graded under Subsections (e)(1) through (6) to the next higher category if it is shown at trial that, among other listed circumstances:

• the actor was a public servant at the time and the property "came into the actor's custody, possession, or control by virtue of his status as a public servant";
• the actor was in a contractual relationship with government and the property came into the actor's custody, possession or control by virtue of that relationship; or
• the owner of the property was an elderly individual (a person 65 years of age or older, Section 22.04(c)) or a nonprofit organization.

For the victim side of financial exploitation of older adults, see our guide to elder financial fraud.

Public servants and government property

Besides the theft enhancement in Section 31.03(f)(1), Penal Code 39.02 covers abuse of official capacity. Under Section 39.02(a)(2), a public servant commits an offense if, "with intent to obtain a benefit or with intent to harm or defraud another," he intentionally or knowingly "misuses government property, services, personnel, or any other thing of value belonging to the government that has come into the public servant's custody or possession by virtue of the public servant's office or employment."

Section 39.02(c) grades a Subsection (a)(2) offense by "the value of the use of the thing misused." It is a state jail felony from $2,500 to under $30,000, a third-degree felony from $30,000 to under $150,000, a second-degree felony from $150,000 to under $300,000, and a first-degree felony at $300,000 or more. Section 39.02(c)(1) to (3) set the grades for lower values.

Misapplication of fiduciary property

Penal Code 32.45 reaches fiduciaries and people who handle a financial institution's property and deal with it improperly. Its elements differ from theft: the offense turns on misapplying the property in a manner that involves substantial risk of loss, and it can be committed recklessly as well as intentionally or knowingly.

"(b) A person commits an offense if he intentionally, knowingly, or recklessly misapplies property he holds as a fiduciary or property of a financial institution in a manner that involves substantial risk of loss to the owner of the property or to a person for whose benefit the property is held."

The statute defines "misapply" as dealing with property contrary to "(A) an agreement under which the fiduciary holds the property; or (B) a law prescribing the custody or disposition of the property." Under Section 32.45(a)(1), a fiduciary includes a trustee, guardian, administrator, executor, conservator or receiver; an attorney in fact or agent under a durable power of attorney; "any other person acting in a fiduciary capacity, but not a commercial bailee" (except one in a motor fuel sales agreement); and "an officer, manager, employee, or agent carrying on fiduciary functions on behalf of a fiduciary."

Section 32.45(c) grades the offense by the value of the property misapplied, on the same dollar ladder as theft: Class C misdemeanor under $100, Class B from $100, Class A from $750, state jail felony from $2,500, third degree from $30,000, second degree from $150,000, and first degree at $300,000 or more. Under Section 32.45(d), an offense graded under Subsections (c)(1) to (6) is increased to the next higher category if it is shown at trial that the offense "was committed against an elderly individual as defined by Section 22.04."

Financial abuse of an elderly individual

Penal Code 32.55(c) makes it an offense if a person "knowingly engages in the financial abuse of an elderly individual," meaning a person 65 years of age or older (Section 22.04(c)). Financial abuse includes financial exploitation by someone in a relationship of confidence or trust, which Section 32.55(b) defines to include a relative by blood or marriage, a joint tenant or tenant in common, a person with a legal or fiduciary relationship, a financial planner or investment professional, and a paid or unpaid caregiver.

Under Section 32.55(a)(3), financial exploitation includes "the misuse of a durable power of attorney or the abuse of guardianship powers" that results in the unauthorized appropriation, sale or transfer of property, and "the misappropriation, misuse, or unauthorized transfer of another person's money from a personal or a joint account."

Section 32.55(d) grades the offense by value: Class B misdemeanor under $100, Class A from $100, state jail felony from $750, third degree from $2,500, second degree from $30,000 and first degree at $150,000 or more. Under Section 32.55(e), a person who can be prosecuted under this section and another section "may be prosecuted under either section or both sections."

Separately, Section 32.53 makes it a third-degree felony to intentionally, knowingly or recklessly cause the exploitation of a child, elderly individual or disabled individual, which includes the illegal or improper use of that person's resources for monetary or personal benefit, profit or gain.

What is forgery in Texas?

Penal Code 32.21(b) states: "A person commits an offense if he forges a writing with intent to defraud or harm another." The definition of "forge" has three parts:

• (A) Making a false writing: to "alter, make, complete, execute, or authenticate any writing so that it purports: (i) to be the act of another who did not authorize that act; (ii) to have been executed at a time or place or in a numbered sequence other than was in fact the case; or (iii) to be a copy of an original when no such original existed."
• (B) Uttering: to "issue, transfer, register the transfer of, pass, publish, or otherwise utter a writing that is forged within the meaning of Paragraph (A)."
• (C) Possession: to "possess a writing that is forged within the meaning of Paragraph (A) with intent to utter it in a manner specified in Paragraph (B)."

Section 32.21(a)(2) defines a writing to include "printing or any other method of recording information," "money, coins, tokens, stamps, seals, credit cards, badges, and trademarks," and "symbols of value, right, privilege, or identification."

So passing a forged check and holding one with intent to pass it are forgery in Texas, not separately named crimes. Section 32.21(g) adds that if the conduct "also constitutes an offense under any other law, the actor may be prosecuted under this section or the other law." If someone forged or altered a check drawn on your account, our guide to mail theft and check washing covers the victim side.

Is forgery a felony in Texas?

Texas grades forgery two ways: by the kind of writing, and by value when the forgery was aimed at getting property or a service. The grades below apply to offenses committed on or after September 1, 2025; earlier forgeries are graded under the lower scale described under Recent changes.

• Default (Section 32.21(c)). Except as provided by Subsections (d), (e) and (e-1), forgery is a state jail felony.
• Commercial instruments (Section 32.21(d)). Subject to Subsection (e-1), forgery is a third-degree felony if the writing is or purports to be "a will, codicil, deed, deed of trust, mortgage, security instrument, security agreement, credit card, check, authorization to debit an account at a financial institution, or similar sight order for payment of money, contract, release, or other commercial instrument."
• Money, securities and government instruments (Section 32.21(e)). Subject to Subsection (e-1), forgery is a second-degree felony if the writing is or purports to be "part of an issue of money, securities, postage or revenue stamps," a government record listed in Section 37.01(2)(C), or "other instruments issued by a state or national government or by a subdivision of either, or part of an issue of stock, bonds, or other instruments representing interests in or claims against another person."
• Forgery to obtain property or a service (Section 32.21(e-1)). If it is shown at trial that the actor engaged in the conduct "to obtain or attempt to obtain a property or service," the grade follows the value: Class B misdemeanor under $100; Class A misdemeanor from $100 to under $750; state jail felony from $750 to under $2,500; third degree from $2,500 to under $30,000; second degree from $30,000 to under $150,000; and first degree at $150,000 or more.
• Elderly victims (Section 32.21(e-2)). An offense other than one graded under Subsection (e-1)(6) is increased to the next higher category if it is shown at trial that it "was committed against an elderly individual as defined by Section 22.04."

Because Subsection (d) is "subject to Subsection (e-1)," when it is shown at trial that a forged check was used to obtain property or a service, a small amount can be graded as a misdemeanor under the value scale, while a large sum can push the grade above the third degree.

Texas embezzlement and forgery offenses and penalties

Each grade carries the statutory range set in Chapter 12 of the Penal Code:

For how these categories apply across the Penal Code, see Texas felony and misdemeanor classes.

Related offenses, deadlines and civil suits

Bad checks. Issuance of a bad check under Penal Code 32.41 is a Class C misdemeanor, or a Class B misdemeanor if the check "was for a child support payment the obligation for which is established under a court order." Section 32.41(g) states that it "is not a lesser included offense of an offense under Section 31.03 or 31.04."

Criminal simulation and stolen checks. Penal Code 32.22 makes it a Class A misdemeanor, with intent to defraud or harm, to make, alter, possess to sell, or authenticate an object so it appears to have value because of age, antiquity, rarity, source or authorship that it does not have. Under Section 32.24, stealing an unsigned check, or receiving one knowing it was stolen with intent to use, sell or transfer it, is a state jail felony. S.B. 1451 raised it from a Class A misdemeanor for offenses committed on or after September 1, 2025.

Time limits for charging. For felonies, Code of Criminal Procedure article 12.01 counts from the date of the commission of the offense. Article 12.01(2) allows 10 years for "theft of any estate, real, personal or mixed, by an executor, administrator, guardian or trustee, with intent to defraud any creditor, heir, legatee, ward, distributee, beneficiary or settlor of a trust interested in such estate," for "theft by a public servant of government property over which the public servant exercises control in the public servant's official capacity," and for "forgery or the uttering, using, or passing of forged instruments." Article 12.01(3)(A) allows seven years for offenses under Chapter 32 of the Penal Code, with listed exceptions, and article 12.01(4)(A) allows five years for theft generally. Misdemeanor charges must be presented within two years under article 12.02(a). For other deadlines, see the Texas statute of limitations page.

Civil suits under the Theft Liability Act. Civil Practice and Remedies Code 134.005(a)(1) lets a person who has sustained damages resulting from theft recover, from the person who commits theft, "the amount of actual damages found by the trier of fact and, in addition to actual damages, damages awarded by the trier of fact in a sum not to exceed $1,000." Section 134.005(b) states that "each person who prevails in a suit under this chapter shall be awarded court costs and reasonable and necessary attorney's fees."

Recent changes

Acts 2025, 89th Legislature, R.S., Ch. 824 (S.B. 1379), effective September 1, 2025, raised the forgery grades in Penal Code 32.21 by one step: the default grade went from a Class A misdemeanor to a state jail felony, checks and other commercial instruments from a state jail felony to a third-degree felony, money, securities and government instruments from a third-degree to a second-degree felony, and the value tiers in Subsection (e-1) were raised, so the first degree now starts at $150,000 instead of $300,000. The act states that the change "applies only to an offense committed on or after the effective date of this Act," so a forgery committed before September 1, 2025 is graded under the earlier text.

Two 2025 acts amended Penal Code 31.03. S.B. 1646 (effective May 30, 2025) changed rules for theft of copper and brass, and H.B. 20 (89th Legislature, 2nd Called Session, effective December 4, 2025) made it a state jail felony to steal property worth less than $30,000 in a disaster area when it came into the actor's custody, possession or control by virtue of the actor's status or purported status as a disaster volunteer (Section 31.03(e)(4)(H)). Neither act changed the general value tiers on this page. The misapplication statute, Section 32.45, was last amended by Acts 2017, 85th Legislature, Ch. 324 (S.B. 1488), effective September 1, 2017, and the theft consolidation clause in Section 31.02 dates to the 1973 Penal Code (effective January 1, 1974) and was last amended by Acts 1993, 73rd Legislature, ch. 900, effective September 1, 1994.

Related pages

• Embezzlement and forgery laws by state
• Texas theft laws
• Texas felony and misdemeanor classes
• Texas statute of limitations
• Texas scam and fraud laws

This article is general legal information about Texas criminal statutes, not legal advice. For a specific situation, contact a lawyer licensed in Texas.

Last updated: 2026-10-17.

Frequently Asked Questions

Is embezzlement a crime in Texas?

Yes, but it is charged as theft. Penal Code 31.02 merged embezzlement into theft under Section 31.03, and a fiduciary's misapplication of property is a separate offense under Section 32.45.

Is embezzlement a felony in Texas?

It depends on the value. Under the value tiers in Penal Code 31.03(e), theft is a state jail felony from $2,500 and a first-degree felony at $300,000 or more. Section 31.03(f) raises the grade one category in listed circumstances, such as a public servant taking property that came into his custody because of that position. Two or more prior theft convictions also make a smaller theft a state jail felony (Section 31.03(e)(4)(D)).

What is the difference between embezzlement and theft in Texas?

There is no separate offense to compare. Penal Code 31.02 merged embezzlement into theft, which Section 31.03 defines as unlawfully appropriating property with intent to deprive the owner.

What is misapplication of fiduciary property in Texas?

Under Penal Code 32.45, it is intentionally, knowingly or recklessly dealing with property held as a fiduciary, or property of a financial institution, contrary to the governing agreement or law, in a way that involves substantial risk of loss. It is graded by value, from a Class C misdemeanor under $100 to a first-degree felony at $300,000 or more.

What happens if a public employee steals government money in Texas?

Penal Code 31.03(f)(1) raises a theft graded below first degree one category when a public servant takes property that came into his custody because of that position. Section 39.02(a)(2), abuse of official capacity, separately covers misuse of government property held by virtue of office, and it is a state jail felony or higher when the value of the use is $2,500 or more.

Is forgery a felony in Texas?

Usually. For offenses committed on or after September 1, 2025, Penal Code 32.21 makes forgery a state jail felony by default, a third-degree felony for checks, credit cards, deeds, wills, contracts and other commercial instruments, and a second-degree felony for money, securities and government records or instruments. When it is shown at trial that the forgery was aimed at obtaining property or a service, it is graded by value instead, so an amount under $750 is a misdemeanor.

Is signing someone else's name on a check forgery in Texas?

Under Penal Code 32.21, it is forgery to execute a writing so that it purports to be the act of another who did not authorize it, if done with intent to defraud or harm. For offenses committed on or after September 1, 2025, a forged check is a third-degree felony, subject to the value grading in Section 32.21(e-1).

Is writing a bad check theft in Texas?

No, it is a separate offense. Issuance of a bad check under Penal Code 32.41 is a Class C misdemeanor, or Class B for court-ordered child support, and Section 32.41(g) states it is not a lesser included offense of theft.

What is the statute of limitations for embezzlement in Texas?

For felonies, Code of Criminal Procedure article 12.01 sets five years for theft generally. It allows 10 years for forgery, for theft of government property by a public servant who controls it in an official capacity, and for listed thefts of an estate by an executor, administrator, guardian or trustee. Misdemeanor charges must be brought within two years under article 12.02.

Can a business sue an employee for theft in Texas?

Under the Texas Theft Liability Act, a person damaged by theft can recover actual damages plus up to $1,000 more (Civil Practice and Remedies Code 134.005(a)(1)). Section 134.005(b) awards court costs and attorney's fees to each person who prevails.