Texas Disabled Veteran Property Tax Exemptions
Texas offers two common property-tax exemptions for veterans with service-connected disabilities. A Texas veteran with a disability rating of 10% or more may qualify for a fixed-dollar exemption of $5,000 to $12,000 from the appraised value of one property. A veteran awarded 100% VA disability compensation — either from a 100% service-connected disability rating or a determination of Individual Unemployability — may qualify for a total exemption of the appraised value of their Texas residence homestead. (Texas Comptroller: Property Tax Exemptions)
These exemptions are approved by the local appraisal district. They aren’t automatic, and they don’t depend on whether the property was purchased with a VA loan, a conventional mortgage, or cash.
Do Disabled Veterans Pay Property Taxes in Texas?
Some disabled veterans continue to pay property taxes after receiving a partial reduction in taxable value, while qualifying 100% or individually unemployable veterans may receive a total exemption on their approved residence homestead.
A partial exemption doesn’t reduce the tax bill by the veteran’s disability percentage. Instead, it removes a fixed amount from the property’s appraised value before applicable taxes are calculated. The total exemption applies only to the qualifying residence homestead — not automatically to every property the veteran owns.
The Exemption Table
VA disability or compensation status | Maximum exemption | Where it can apply | Primary form |
10%–29% disability rating | Up to $5,000 of appraised value | Any one property owned by the veteran | Form 50-135 |
30%–49% disability rating | Up to $7,500 | Any one property | Form 50-135 |
50%–69% disability rating | Up to $10,000 | Any one property | Form 50-135 |
70%–100% disability rating | Up to $12,000 | Any one property | Form 50-135 |
100% VA compensation (100% rating or Individual Unemployability) | Total appraised value | Qualifying residence homestead only | Form 50-114 |
A disabled veteran may also qualify for the maximum $12,000 partial exemption at a lower disability rating if the veteran is age 65 or older with at least a 10% rating, is totally blind in one or both eyes, or has lost the use of one or more limbs.
The Section 11.22 partial exemption can be assigned to any one property the qualified veteran owns — it doesn’t have to be the veteran’s primary residence. A veteran who qualifies for the total residence-homestead exemption may also be eligible to use the partial exemption on another property, subject to appraisal-district approval.
What Happens if the Veteran Qualifies During the Year?
A veteran who becomes eligible for the 100% disabled veteran residence homestead exemption after January 1 may receive the exemption for the applicable portion of that tax year.
The exemption may also begin during the year when an eligible veteran moves into and qualifies a new residence homestead. Taxes may still be due for the portion of the year before the new property qualified. Property Taxes for a Veteran With a 90% Disability Rating
A Texas veteran with a 90% service-connected disability rating generally falls within the 70% to 100% partial-exemption category and may receive an exemption of up to $12,000 from the appraised value of one property.
This does not mean the veteran receives a 90% reduction in the tax bill. It means up to $12,000 is subtracted from the appraised value used to calculate property taxes.
The partial exemption:
- Is independent of the veteran’s mortgage type.
- Does not require the property to have been purchased with a VA loan.
- May be assigned to any one property the eligible veteran owns.
- Is separate from the complete residence-homestead exemption available to qualifying 100% disabled or individually unemployable veterans.
- May be used on a residence homestead that also qualifies for other applicable homestead exemptions.
A veteran with a 90% rating does not receive the total residence-homestead exemption solely because the rating is close to 100%.
Can a 100% Disabled Veteran Claim More Than One Exemption?
A veteran who qualifies for the complete 100% residence-homestead exemption may also qualify for the partial disabled-veteran exemption under Section 11.22.
For example, the veteran may receive the total exemption on the residence homestead and apply the partial exemption to another property the veteran owns, subject to the appraisal district’s approval.
This explains why the statutory partial-exemption table includes 100% ratings in the $12,000 category even though qualifying 100% veterans may receive a total exemption on their homestead.
Disabled Veteran Property Tax Exemption Calculator: A Simple Formula
You can estimate the annual savings from a partial disabled-veteran property tax exemption with one formula:
Estimated annual savings = exemption amount × combined applicable local property-tax rate
If the combined rate shown for your taxing units is $2.00 per $100 of taxable value, use 2% (0.02) in the formula. Divide the estimated annual savings by 12 for an approximate monthly figure.
Actual savings will differ by location, since tax rates vary and other homestead, local-option, or tax-ceiling provisions may affect the final taxable value. Always verify the exemption and adjusted tax bill with your local appraisal district and tax office.
Partial exemption | Savings at 1.5% | Savings at 2.0% | Savings at 2.5% |
$5,000 | $75/year | $100/year | $125/year |
$7,500 | $112.50/year | $150/year | $187.50/year |
$10,000 | $150/year | $200/year | $250/year |
$12,000 | $180/year | $240/year | $300/year |
Example for a 90% disability rating: A Texas veteran with a 90% service-connected disability rating normally falls in the $12,000 partial-exemption tier. At a combined rate of 2%:
$12,000 × 0.02 = $240 per year, or approximately $20 per month.
This doesn’t mean the veteran’s total tax bill drops by 90%. It means $12,000 is removed from the property’s appraised value before taxes are calculated.
A fixed-dollar calculation doesn’t apply to a qualifying 100% or individually unemployable veteran’s total residence-homestead exemption — in that case, the appraisal district determines the exempt value directly.
How to Apply for a Disabled Veteran Property Tax Exemption in Texas
Step 1: Identify the Correct Exemption
Use the exemption that matches your disability rating, compensation status, property type and survivor status.
Step 2: Complete the Correct Form
| Exemption | Texas form |
| Partial disabled-veteran exemption for ratings of 10% to 100% | Form 50-135 |
| Partial exemption for an eligible surviving spouse or child | Form 50-135 |
| Total residence-homestead exemption for a qualifying 100% disabled or individually unemployable veteran | Form 50-114 |
| Exemption for a qualifying donated residence homestead | Form 50-114 |
| Qualifying surviving-spouse residence-homestead exemptions | Form 50-114 |
Always use the most recent version provided by the Texas Comptroller or your local appraisal district.
Step 3: Gather Supporting Documents
The appraisal district may request:
- VA or military documentation showing the service-connected disability rating.
- Documentation showing that the veteran receives 100% disability compensation or has an individual-unemployability determination, when applying for the total exemption.
- Proof of ownership.
- Identification and residence-homestead documentation where required.
- Survivor documentation when applying as a spouse or child.
A driver’s license or state identification card is not sufficient proof of the veteran’s disability rating. VA or military documentation is required.
Step 4: File With the Local Appraisal District
Submit the application to the appraisal district responsible for the property, not directly to the VA or mortgage lender.
The standard filing deadline is April 30. However, the Texas Comptroller states that applications for the partial disabled-veteran exemption and the 100% disabled-veteran residence-homestead exemption may generally be filed up to five years after the delinquency date for the taxes on the property. Filing rules can differ for certain surviving-spouse and donated-homestead claims, so applicants should confirm the applicable period with the appraisal district.
Step 5: Confirm the Exemption Was Applied
After approval:
- Review the property’s appraisal record.
- Check the tax bill for the correct exemption.
- Retain the approval notice and supporting records.
- Contact the mortgage servicer if property taxes are included in the monthly escrow payment.
Approval by an appraisal district does not always cause an immediate mortgage-payment adjustment. The loan servicer may need the updated tax information before completing a new escrow analysis.
Property Donated to a Disabled Veteran by a Charity
A disabled veteran with a disability rating below 100% may qualify for an exemption on a residence homestead donated by a charitable organization.
The percentage of the property value exempted is generally equal to the veteran’s disability rating. For example, a qualifying veteran with a 60% rating may receive an exemption equal to 60% of the donated residence homestead’s appraised value.
The exemption may continue for an eligible surviving spouse when:
- The surviving spouse has not remarried.
- The property was the spouse’s residence homestead when the veteran died.
- The property continues to be the surviving spouse’s residence homestead.
Texas provides several property tax protections for qualifying survivors.
Surviving Spouse of a 100% Disabled Veteran
The complete residence-homestead exemption may continue when:
- The surviving spouse has not remarried.
- The property was the surviving spouse’s residence homestead when the veteran died.
- The property remains the surviving spouse’s residence homestead.
If the surviving spouse later moves to another residence homestead, an exemption may transfer to the new property. However, the transferable exemption is based on the dollar amount exempted on the former homestead. The new home may therefore not be completely exempt. Surivors Eligible for a Partial Exemption
An unmarried surviving spouse or qualifying surviving child under age 18 may be eligible for a partial disabled-veteran exemption.
A surviving spouse of a service member who died while on active duty may also qualify for a $5,000 exemption on one property. Separate rules provide a total residence-homestead exemption to an eligible unremarried surviving spouse of a service member killed or fatally injured in the line of duty.
Does a VA Loan Automatically Remove Property Taxes?
No. A VA loan does not automatically create a Texas property tax exemption.
VA loans, Texas Vet Loans and property tax exemptions are separate programs:
- The lender determines mortgage qualification and loan terms.
- The VA determines disability ratings and disability compensation.
- The local appraisal district determines eligibility for the Texas property tax exemption.
- The tax assessor or collector issues the adjusted property tax bill after the exemption is applied.
A veteran using a VA loan may still owe property taxes unless the local appraisal district has
approved an applicable exemption.
Texas 100% Disabled Veteran Residence Homestead Exemption
A Texas veteran may qualify for a total exemption of the appraised value of their residence homestead when awarded 100% VA disability compensation for a service-connected disability, with either a 100% disability rating or a VA determination of Individual Unemployability.
The veteran must own and occupy the property as a residence homestead and file Form 50-114 with the appraisal district where the property is located (Texas Comptroller: Form 50-114). The exemption doesn’t apply automatically and doesn’t extend to every property the veteran owns. An eligible veteran may also qualify for the partial disabled-veteran exemption under Section 11.22 on another property, subject to appraisal-district approval.
What Property Tax Exemption Does a 90% Disabled Veteran Receive?
A Texas veteran with a 90% service-connected disability rating normally qualifies for an exemption of up to $12,000 from the appraised value of one property. A 90% rating doesn’t reduce the property-tax bill by 90%, and the property doesn’t need to have been purchased with a VA loan.
Actual property taxes for a 90%-rated veteran depend on the property’s taxable value, local tax rates, and any additional exemptions that apply. A veteran with a 90% schedular rating who separately receives 100% VA disability compensation because of Individual Unemployability may qualify for the total residence-homestead exemption instead. The local appraisal district determines which exemption applies.
Disabled Veteran Exemption vs. Disabled Person Homestead Exemption
These are two different benefits. The disabled-veteran exemption is based on a service-connected disability rating and can be assigned to any one property the qualified veteran owns. The disabled-person exemption applies only to a residence homestead and uses the Social Security disability standard — a VA disability rating or benefits from another disability program don’t automatically qualify a property owner for the disabled-person homestead exemption.
For 2026, Texas school districts provide a $140,000 general residence-homestead exemption. A person who is 65 or older, or who meets the disabled-person standard, receives an additional $60,000 school-district exemption. (Texas Comptroller: Residence Homestead Exemption) A veteran may potentially qualify for more than one exemption, but the appraisal district determines how each applies to the property.
Does a VA Loan Automatically Remove Property Taxes?
No. A VA loan doesn’t automatically create or apply a Texas property-tax exemption. The local appraisal district decides whether the veteran and property qualify, while the lender or loan servicer determines how documented property taxes are reflected in qualification, closing, and escrow.
If an exemption hasn’t been approved by closing, the projected housing payment may still include property taxes based on the current bill or an estimate. Once the exemption is approved, send the approval notice or updated tax information to the loan servicer and request an escrow analysis — the adjustment to your mortgage payment isn’t necessarily automatic or immediate.
Surviving Spouse of a Veteran Who Died From a Qualifying Condition or Disease
Texas Tax Code Section 11.136 provides a total residence-homestead exemption to an eligible surviving spouse of a veteran who died because of a qualifying condition or disease, regardless of the veteran’s disability rating at the time of death. (Bexar CAD: Section 11.136 Exemption)
The surviving spouse must remain unmarried and file Form 50-114. Because “qualifying condition or disease” has a specific legal definition tied to federal presumptive-service-connection lists, the local appraisal district should verify whether the veteran’s circumstances satisfy the provision.
How This Comes Up When Financing a Home
I walk Texas veterans through this exemption schedule regularly during the pre-approval conversation, not after closing. The most common surprise isn’t the exemption itself — it’s veterans assuming a 50% rating cuts their tax bill in half, when it’s actually a flat $10,000 off the appraised value. Knowing your tier ahead of time helps set an accurate housing payment estimate from the start, rather than a correction once the escrow analysis comes back.
Frequently Asked Questions
No. The exemptions covered here generally require a qualifying service-connected disability, eligible survivor status or another qualification established by Texas law.
It may. A veteran receiving 100% disability compensation due to a service-connected disability may qualify if the VA has determined that the veteran is individually unemployable.
A qualifying veteran applying for the total residence-homestead exemption generally uses Form 50-114.
Texas establishes the disabled-veteran property tax exemptions, but local appraisal districts review applications and determine whether a particular veteran, survivor and property qualify.
Contact the appraisal district where the property is located before relying on an estimated exemption. Property tax laws and administrative requirements can change, and additional documentation may be required for an individual application.
This information is provided for general educational purposes and should not be treated as legal or tax advice.
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