Property Tax Exemptions for Disabled Veterans in Texas

Property Tax Exemptions for Disabled Veterans

Property taxes in Texas can be steep, often taking a big chunk out of a homeowner’s budget. For disabled veterans, these exemptions aren’t just a perk—they’re a lifeline. Whether you’re rated 10% disabled or 100% unemployable, Texas offers relief that scales with your disability rating. For some, this means a partial reduction; for others, it’s a complete exemption from property taxes on their primary residence. The savings can be life-changing, letting you focus on what matters most—your family, health, and future.

Who Qualifies for Disabled Veteran Property Tax Exemptions in Texas?

To qualify for these exemptions, you need to meet specific criteria set by the Texas Property Tax Code. Here’s a quick rundown:

• Service Requirement: You must be an honorably discharged veteran of the U.S. armed forces.
• Disability Requirement: You need a service-connected disability rating of at least 10% from the Department of Veterans Affairs (VA), per Tax Code Section 11.22.
• Residency Requirement: The property must be your primary residence (homestead), and you must be a Texas resident.
• Surviving Spouses and Children: Unremarried surviving spouses or children (under 18 and unmarried) of a disabled veteran or a service member killed in action may also qualify, as outlined in Tax Code Section 11.133.

If you’re a surviving spouse, the exemption can sometimes transfer to a new homestead, but only if you haven’t remarried. Always check with your local appraisal district, as rules can vary slightly by county.

Types of Property Tax Exemptions for Disabled Veterans

Texas offers two main types of property tax exemptions for disabled veterans: partial exemptions based on disability rating and a full exemption for those with a 100% disability rating or individual unemployability. Let’s break them down.

Partial Disabled Veteran Exemption

This exemption applies to veterans with a disability rating between 10% and 99%. The amount you save depends on your VA disability rating. Here’s how it works, according to the Texas Veterans Commission, as detailed in Texas Tax Code Section 11.22:

This exemption reduces the taxable value of your property, which lowers your overall tax bill. For example, if your home’s assessed value is $200,000 and you have a 50% disability rating, you’d subtract $10,000, leaving a taxable value of $190,000. This can be applied to any one property you own, not just your homestead, though most veterans apply it to their primary residence.

100% Disabled Veteran Homestead Exemption

If you’re rated 100% disabled or deemed individually unemployable by the VA, you’re eligible for a total exemption of your homestead’s appraised value, as outlined in Texas Tax Code Section 11.131.

That’s right—zero property taxes on your primary residence. This is a game-changer for many veterans, especially in high-tax areas like Austin or Houston.

Surviving spouses of 100% disabled veterans can also claim this exemption if they haven’t remarried, and it may transfer to a new homestead under certain conditions.

Additional Exemptions for Veterans Over 65

If you’re a disabled veteran aged 65 or older, you might qualify for an extra $12,000 exemption if you meet one of these conditions:

• At least 10% service-connected disability rating.
• Totally blind in one or both eyes.
• Loss of use of one or more limbs.

This can stack with other exemptions in some cases, but you’ll need to confirm with your county appraisal district, as rules vary.

How to Apply for Property Tax Exemptions in Texas

Applying for these exemptions is straightforward but requires specific documentation. Here’s a step-by-step guide to get you started:

Gather Documentation:

• A current VA award letter showing your disability rating (VA.gov or call 1-800-827-1000).
• Your DD Form 214 (discharge papers).
• Proof of Texas residency (e.g., driver’s license or utility bill).
• For surviving spouses or children, include the veteran’s disability records or proof of death in the line of duty.

Complete the Right Form:

• For partial exemptions (10%–99% disability), use Form 50-135.
• For the 100% disabled veteran homestead exemption, use Form 50-114.

Submit to Your County Appraisal District:

• Find your local appraisal district.
• You can often file online, by mail, or in person. Check your district’s website for details.

Meet Deadlines:

• The standard deadline is April 30 each year, but you can apply up to five years after the delinquency date. Surviving spouses have a two-year window for some exemptions.

Double-Check Eligibility:

• If your home was donated by a charitable organization, you may still qualify, but the exemption amount might match your disability rating percentage.

Pro tip: Keep copies of everything you submit. Appraisal districts can be busy, and having records ensures you’re covered if paperwork gets lost.

Key Deadlines and Retroactive Benefits

Missed the April 30 deadline? Don’t sweat it. Texas allows disabled veterans to file for exemptions up to five years after the tax delinquency date, which means you could get retroactive relief. For example, if you became eligible in 2023 but didn’t apply, you can still file in 2025 and potentially get a refund for overpaid taxes. Surviving spouses have a two-year window for some exemptions, so act quickly if you’re in this category.

Combining Exemptions: What You Need to Know

Can you stack exemptions?

Sometimes, but it depends on your county. For instance, you might combine the general homestead exemption ($100,000 for school district taxes) with the disabled veteran exemption, but you can only apply one disabled veteran exemption per property. If you’re 100% disabled, the homestead exemption often covers the full value, making other exemptions irrelevant. Always consult your local appraisal district to confirm what’s allowed.

Real-World Impact: A Veteran’s Story

Imagine you’re a veteran in San Antonio with a 70% disability rating. Your home’s assessed value is $250,000, and your property tax rate is 2%. Without an exemption, you’d owe $5,000 annually. With the $12,000 disabled veteran exemption, your taxable value drops to $238,000, saving you $240 a year. If you’re 100% disabled, that bill drops to $0. These savings can mean keeping your home, paying for medical expenses, or simply breathing easier each month.

Tips for Maximizing Your Exemption Benefits

• File Early: Applying before April 30 ensures your exemption starts in the current tax year.
• Check Local Rules: Counties like Harris or Collin may have additional forms or requirements. Visit your county’s appraisal district website for specifics.
• Appeal if Denied: If your application is rejected, you can appeal through your appraisal district’s process. Don’t give up—mistakes happen.
• Stay Updated: If your disability rating or marital status changes, inform your appraisal district to avoid penalties or loss of benefits.
• Seek Free Help: Organizations like the Texas Veterans Commission or local Veteran Services Officers can guide you through the process at no cost.

The Bottom Line

Property tax exemptions for disabled veterans in Texas are a powerful way to reduce financial stress and honor your service.

Whether you’re saving a few hundred dollars with a partial exemption or wiping out your tax bill entirely with the 100% disabled veteran homestead exemption, these benefits are worth pursuing.

Start by gathering your VA award letter and contacting your local appraisal district. The process might seem daunting, but with the right documents and a little persistence, you’ll be on your way to significant savings.

Have questions or need help? Reach out to the Texas Veterans Commission at 800-252-VETS or check your county’s appraisal district website. You’ve earned these benefits—don’t let them go unclaimed.

Common Questions About Disabled Veteran Property Tax Exemptions

1. What if I don’t have a 100% disability rating?

You can still qualify for a partial exemption if your VA disability rating is 10% or higher. The exemption amount ranges from $5,000 to $12,000, depending on your rating.

2. Can I apply the exemption to a vacation home?

No, the 100% disabled veteran exemption only applies to your primary residence. However, the partial exemption (10%–99% disability) can be applied to any one property you own, like a vacation home.

3. Do surviving spouses need to reapply every year?

No, once approved, the exemption typically continues unless the appraisal district requests a new application or your circumstances change (e.g., remarriage).

4. What if my home was donated by a charity?

If a charitable organization donated your home, you may qualify for an exemption equal to your disability rating percentage (e.g., 50% disability = 50% exemption). File Form 50-114 to apply.

5. Can I use my driver’s license as proof of disability?

No, you need an official VA award letter or similar documentation from your branch of service showing your disability rating. Contact the VA at 1-800-827-1000 for help.

6. What happens if I move to a new home?

For 100% disabled veterans, the exemption can transfer to a new homestead, but taxes for the year are prorated based on when you qualify the new property. Surviving spouses may transfer a dollar-amount equivalent of the prior exemption.

7. Are there additional benefits for surviving spouses of service members killed in action?

Yes, unremarried surviving spouses of service members killed in action can claim a full homestead exemption under Tax Code Section 11.133. File Form 50-114.

8. How do I know if my county offers extra exemptions?

Some counties provide additional relief, like Harris County’s veteran services. Contact your local appraisal district or visit TexVet.org for county-specific details.

9. What if my disability rating changes?

If the VA adjusts your rating, notify your appraisal district immediately. A reduction below 100% could affect your homestead exemption, while an increase might qualify you for more benefits.

10. Can I get help with my application?

Yes! The Texas Veterans Commission offers free assistance through Claims Benefit Advisors. Call 800-252-VETS or email info@tvc.texas.gov for support.