Property Tax Exemptions By Disability Rating
Texas Disabled Veteran Property Tax Exemptions in 2026
Texas Comptroller Property Tax Exemptions
100% Disabled Veteran FAQ
TexVet Property Tax Guide
Texas offers the strongest property tax benefit for disabled Veterans in the country. A 100% P&T Veteran pays zero property tax on their homestead — no cap on home value, no income test. On a $400,000 home in a county with a 2.0% effective rate, that is $8,000 per year or $667 per month back in your pocket. This directly reduces your VA loan payment and can add $80,000+ to your buying power.
Next step:
Check Your VA Loan Eligibility
100% P&T Exemption
- Full exemption — $0 property tax on homestead regardless of home value
- Includes IU (Individual Unemployability) at 100% rate
- Surviving un-remarried spouse keeps the exemption for life
- File Form 50-114 with your county appraisal district
Partial Disability (10-90%)
- $5,000 to $12,000 off the assessed value depending on rating percentage
- Stacks with the standard $100,000 homestead exemption for school taxes
- Must be service-connected — non-service ratings do not qualify
- Have your VA rating letter ready when you apply
Filing And Deadlines
- Apply between January 1 and April 30 for the current tax year
- Late filing accepted with retroactive benefits up to 5 years back
- File at your county appraisal district — not the state or county tax office
- Apply before April 30 to avoid waiting until next tax year
VA Loan Impact
- $0 tax escrow = lower monthly PITI = better DTI ratio
- A $667/month savings on a $400K home adds ~$80K in buying power
- Tell your lender about the exemption so escrow is calculated correctly
- Get your exemption approved before or shortly after closing
Frequently Asked Questions
How much does a 100% disabled Veteran save on property tax in Texas?
A 100% P&T Veteran pays zero property tax on their homestead. On a $400,000 home in a county with a 2.0% effective rate, that saves $8,000 per year — $667 per month.
Does a surviving spouse keep the Texas property tax exemption?
Yes. An un-remarried surviving spouse of a 100% P&T Veteran keeps the full exemption on the same homestead for life. They can also transfer the dollar amount to a new homestead if they move.
Where do I apply for the Texas disabled Veteran property tax exemption?
File Form 50-114 (Residence Homestead Exemption Application) with your county appraisal district — not the county tax office. You need your VA rating letter and proof of homestead occupancy.
The Bottom Line Up Front
Texas gives 100% P&T disabled Veterans a full property tax exemption on their homestead — no cap on home value, no income test, no expiration. This is the most generous Veteran property tax benefit in the country. On a $400,000 home in a county with a 2.0% effective rate, you save $8,000 per year. That directly reduces your VA loan monthly payment by $667 and can shift your target purchase price up by $80,000 or more.
Veterans with partial disability ratings (10% to 90%) receive a smaller exemption — $5,000 to $12,000 off the assessed value of their homestead. While not as dramatic as the full exemption, this still reduces the annual tax bill and improves DTI ratios for VA loan qualification. Every dollar saved on taxes is a dollar that either stays in your pocket or supports a higher mortgage payment.
What To Do Based On Your Situation
- Buying a home in Texas soon: Apply for the exemption immediately after closing. Tell your lender about your disability rating during preapproval so they calculate escrow correctly from the start.
- Already own a home in Texas: If you have not applied, file Form 50-114 with your county appraisal district. You can claim retroactive benefits for up to 5 prior tax years.
- Surviving spouse of a Texas Veteran: You may keep the full exemption on the same homestead or transfer the dollar amount to a new homestead. File with the county appraisal district with the Veteran’s death certificate and your marriage documentation.
What Are The Texas Disability Rating Exemption Tiers?
Texas offers different levels of property tax relief based on your VA disability rating. The exemptions are cumulative with other homestead exemptions, meaning you get the disability benefit on top of the standard homestead exemption that every Texas homeowner receives.
| VA disability rating | Exemption amount | Annual savings on $400K home at 2.0% | Monthly PITI reduction |
|---|---|---|---|
| 10% to 29% | $5,000 off assessed value | $100 | $8 |
| 30% to 49% | $7,500 off assessed value | $150 | $13 |
| 50% to 69% | $10,000 off assessed value | $200 | $17 |
| 70% to 100% (not P&T) | $12,000 off assessed value | $240 | $20 |
| 100% P&T or IU | Full exemption — $0 tax | $8,000 | $667 |
| Surviving spouse (100% P&T) | Full exemption — $0 tax (or dollar amount on new home) | $8,000 | $667 |
Deal Math: A 100% P&T Veteran buying a $450,000 home near Fort Cavazos at a 2.2% effective tax rate saves $9,900 per year — $825 per month. Combined with the VA funding fee exemption (saving $9,675 upfront on a $450,000 loan), the total first-year benefit is $19,575. Over a 30-year mortgage, the property tax savings alone total $297,000.
What Is The Exemption Worth In Real Dollars?
The dollar value of the Texas exemption depends on your home’s value and your county’s effective tax rate. Texas has no state income tax but relatively high property tax rates — the statewide average is approximately 1.60%, but many counties near Military bases run 2.0% or higher.
| Home value | Effective tax rate | Annual tax without exemption | Annual tax with 100% exemption | Monthly savings |
|---|---|---|---|---|
| $250,000 | 1.80% | $4,500 | $0 | $375 |
| $350,000 | 2.00% | $7,000 | $0 | $583 |
| $450,000 | 2.20% | $9,900 | $0 | $825 |
| $600,000 | 2.00% | $12,000 | $0 | $1,000 |
Home Search Impact: A Veteran with the 100% exemption shopping in the San Antonio area (effective rate ~2.1%) gains approximately $500 to $700 per month in payment capacity compared to a non-exempt buyer at the same income level. That translates to roughly $65,000 to $90,000 more in purchasing power at current VA rates. You are not just saving money on taxes — you are competing for homes in a higher price bracket than buyers without the exemption.
How Does This Change Your VA Loan Math?
The property tax exemption changes your VA loan qualification in four concrete ways. Your monthly PITI drops because the tax portion of escrow goes to zero. Your DTI ratio improves because total monthly obligations decrease. Your residual income increases because less of your income is committed to housing. And your maximum qualifying purchase price rises because the lender uses the lower payment when calculating affordability.
- PITI impact: On a $400,000 home at 6.5% with $0 down, removing $667/month in tax escrow drops your total PITI from approximately $3,200 to $2,533. That is a 21% reduction in your housing payment.
- DTI improvement: At $7,000/month gross income, that $667 reduction drops your housing DTI from 46% to 36% — well below the 41% VA benchmark. Files that would otherwise need compensating factors may get clean AUS approval with the exemption in place.
- Buying power shift: The $667 monthly savings, redirected toward principal and interest, supports an additional $80,000 to $95,000 in purchase price at 6.5%. A Veteran who qualifies for $350,000 without the exemption may qualify for $430,000 with it.
- Escrow adjustment: If you close before the exemption is approved, your lender will initially escrow for the full tax amount. Once the exemption is applied, request an escrow re-analysis — your monthly payment will decrease and the lender will refund the overage.
Where Do Veterans Actually File In Texas?
Texas property tax exemptions are filed at the county appraisal district — not the county tax office, not the state comptroller, and not the VA. Each of the 254 Texas counties has its own appraisal district that handles exemption applications.
- Find your county appraisal district: Search “[Your County] appraisal district” or use the Texas Comptroller’s online directory. Near Military bases: Bexar County (JBSA), Bell County (Fort Cavazos), El Paso County (Fort Bliss), Tarrant County (NAS JRB Fort Worth).
- File Form 50-114: The Residence Homestead Exemption Application. Available at your appraisal district office or online. Check the box for disabled Veteran exemption and attach your VA rating letter.
- Provide documentation: VA disability rating letter showing 100% P&T or IU status, Texas driver’s license or state ID matching the property address, and the property deed showing your name.
- Deadline: File between January 1 and April 30 for the current tax year. Late filings are accepted, and you can claim retroactive benefits for up to 5 prior tax years — file a late application and include the years you are claiming.
Process Watchpoint: If you are buying a home and closing before April 30, apply for the exemption as soon as you close — do not wait until the next year. If you close after April 30, you can still file a late application for the current year. The retroactive provision means you never permanently lose the benefit for years you were eligible but did not apply.
Do Surviving Spouses Keep The Exemption In Texas?
Yes — and Texas is one of the most generous states for surviving spouses. If a 100% P&T Veteran dies, the un-remarried surviving spouse keeps the full property tax exemption on the same homestead for life. No expiration, no income test, no re-application required beyond the initial transfer filing.
If the surviving spouse moves to a new homestead in Texas, they can transfer the exemption — but as a dollar amount, not a percentage. The new home receives an exemption equal to the dollar amount of taxes that were exempted on the original homestead. If the original home had a $10,000 annual tax bill that was fully exempt, the new home gets a $10,000 exemption regardless of its value or tax rate.
Remarriage terminates the exemption. If the surviving spouse remarries and the subsequent marriage later ends through divorce or death, the exemption cannot be reinstated. This is a permanent loss once remarriage occurs.
What About Texas Counties Near Military Bases?
Tax rates vary significantly across Texas counties, which means the dollar value of the exemption varies too. Counties near major Military installations tend to have moderate to high effective rates because of the infrastructure and school funding needs.
| Military base | County | Approx. effective rate | Annual savings on $350K home | Median home price (2026 est.) |
|---|---|---|---|---|
| JBSA (Lackland/Randolph/Sam Houston) | Bexar | 2.10% | $7,350 | $310,000 |
| Fort Cavazos (formerly Hood) | Bell | 2.30% | $8,050 | $275,000 |
| Fort Bliss | El Paso | 2.40% | $8,400 | $250,000 |
| NAS JRB Fort Worth | Tarrant | 2.15% | $7,525 | $375,000 |
| NAS Corpus Christi | Nueces | 2.00% | $7,000 | $265,000 |
| Dyess AFB | Taylor | 2.10% | $7,350 | $220,000 |
The Bottom Line
Texas offers a full property tax exemption for 100% P&T disabled Veterans — no cap on home value, no income limit, and the surviving spouse keeps it for life. On a typical $350,000 to $450,000 home near a Texas Military base, that saves $7,000 to $10,000 per year. File Form 50-114 with your county appraisal district, attach your VA rating letter, and you pay $0 in property tax for as long as you own the home. If you have not applied yet, you can claim retroactive benefits for up to 5 prior years.
Frequently Asked Questions
Should I apply for the exemption before or after closing on my VA loan?
After closing — you cannot file until you own the home and it is your homestead. Apply immediately after closing to minimize the time you pay full taxes. If you close late in the year, file a late application for the current tax year.
Will my lender adjust my escrow after the exemption is approved?
Not automatically. Once the exemption appears on your tax bill, request an escrow re-analysis from your lender. Your monthly payment will decrease and the lender will refund any overage in the escrow account.
Does the property tax exemption affect my VA loan qualification?
Yes. Lower property taxes mean a lower total PITI payment, which may improve your DTI ratio and increase the purchase price you can qualify for. Tell your lender about your disability rating during preapproval.
Can I combine the property tax exemption with the VA funding fee waiver?
Yes. Veterans with a 10% or higher service-connected disability rating are exempt from both the VA funding fee and the Texas property tax. These are separate benefits administered by different agencies.
Do I need my VA rating letter in hand, or does a pending claim count?
You need the actual rating letter. A pending claim does not qualify. However, once the rating is issued, you can file retroactively for up to 5 prior tax years — so you do not permanently lose the benefit while waiting for the VA decision.
If I close before the exemption is approved, can I get a refund?
The county appraisal district applies the exemption from the date you qualify. If you paid taxes for months before the exemption was approved, the county will recalculate and issue a refund or credit for the overpayment.
Does IU (Individual Unemployability) qualify for the full exemption?
Yes. Texas treats IU the same as a 100% schedular rating for property tax purposes. If the VA pays you at the 100% rate due to IU, you qualify for the full homestead exemption.
What happens if my disability rating changes?
If your rating increases, you can re-file for a higher exemption. If your rating decreases below 100% P&T, the full exemption is revoked and you revert to the partial exemption that matches your new rating.
Can I get the exemption on a second home or rental property?
No. The Texas disabled Veteran property tax exemption applies only to your primary residence homestead. Rental properties, second homes, and investment properties do not qualify.
Does the exemption apply to all property taxes, including school district and MUD?
Yes. The 100% P&T exemption covers all taxing jurisdictions — county, city, school district, MUD, and any special districts. The partial disability exemption ($5,000 to $12,000) applies to all jurisdictions as well.
How long does it take to get the exemption approved?
Typically 2 to 4 weeks after filing with the county appraisal district. Processing times vary by county. The exemption takes effect for the full tax year in which it is approved.
Can a surviving spouse transfer the exemption to a new home?
Yes. An un-remarried surviving spouse can transfer the exemption as a dollar amount to a new homestead in Texas. The new home receives the same dollar value of exemption that was applied to the original homestead.
