Texas Disabled Veteran Property Tax Exemptions in 2026
Does Texas Exempt Disabled Veterans From Property Tax?
Yes. Texas exempts the total appraised value of a qualifying Veteran’s residence homestead when VA has awarded 100% disability compensation for a service-connected disability and either a 100% disability rating or individual unemployability. Veterans with ratings from 10% through 100% may also receive a smaller exemption of up to $5,000 to $12,000 from the assessed value of one designated property. Use Form 50-114 for the total homestead exemption and Form 50-135 for the partial disabled Veteran exemption. File with the county appraisal district, not VA or the Texas Comptroller. [1] [2] [3]
Texas appraisal districts decide exemption eligibility. This guide is educational and is not a tax ruling, legal opinion or mortgage approval.
Texas Veteran Property Tax Exemptions at a Glance
Select an area to review eligibility, forms, deadlines, savings examples and mortgage effects.
Which Texas Exemptions Are Available?
Compare total, partial, donated-home and qualifying-survivor exemptions.
Who Qualifies for the Full Homestead Exemption?
Use the statutory compensation and rating test, not shorthand alone.
What Do Ratings From 10% to 90% Receive?
The benefit reduces assessed value on one designated property.
Which Form Do You File?
Use Form 50-114 or 50-135 with the county appraisal district.
How Much Could You Save?
Calculate savings from the approved exemption and real local tax bill.
How Can the Exemption Affect a VA Loan?
Verified tax reductions can change payment, escrow and DTI calculations.
What Can a Surviving Spouse Claim?
Remarriage, residence and transfer rules determine continued relief.
What Other Texas Rules Matter?
Donated homes, midyear qualification and non-homestead property require separate analysis.
Real-World Texas Veteran Scenarios
See how rating, ownership, moving and escrow timing change outcomes.
Which Mistakes Cost Veterans Money?
Use the correct form, deadline, documentation and tax estimate.
Frequently Asked Questions
Fast answers about IU, P&T, forms, refunds and mortgage escrow.
Sources and Verification Method
Texas statutes, Comptroller guidance, official forms, VA and eCFR.
The full exemption is powerful but must be documented and approved. Do not assume that every 100% award, pending VA claim or partial rating creates a zero-tax bill. Confirm the exact VA evidence, residence-homestead status, application form and appraisal-district decision before using lower taxes in a mortgage budget.
Which Texas Disabled Veteran Property Tax Exemptions Are Available?
Texas uses several separate exemptions. The correct benefit depends on the Veteran’s rating, VA compensation, property type, ownership, homestead status and survivor circumstances. [1] [6]
| Program | Who may qualify | Property and benefit | Form |
|---|---|---|---|
| Tax Code §11.131 | Veteran awarded 100% disability compensation due to service-connected disability and either a 100% rating or individual unemployability | Total appraised value of the qualifying residence homestead is exempt from ad valorem taxation | 50-114 |
| Tax Code §11.22 | Texas resident with a service-connected rating of at least 10% | Up to $5,000, $7,500, $10,000 or $12,000 from assessed value of one designated property | 50-135 |
| Tax Code §11.132 | Partially disabled Veteran with a qualifying residence donated by a charitable organization, including certain reduced-cost donations | Percentage exemption generally tied to the disability rating | 50-114 |
| Tax Code §11.136 | Qualifying unremarried surviving spouse of a Veteran who died from a federally presumed service-connected condition or disease | Total exemption of the qualifying residence homestead, subject to statutory requirements | 50-114 |
Texas Has No State Property Tax
Counties, cities, school districts and special districts impose local ad valorem taxes. The county appraisal district determines appraised value and exemption eligibility, while tax offices collect bills for the taxing units they serve.
Exemption Does Not Mean Every Charge Disappears
A total exemption under §11.131 removes the residence homestead’s appraised value from ad valorem taxation. Confirm treatment of non-tax fees, assessments or other property-related charges separately.
Texas also requires school districts to provide a $140,000 general residence-homestead exemption in 2026. That general exemption is separate from the disabled Veteran provisions and matters when estimating the tax bill that would apply without a total Veteran exemption. [7]
Who Qualifies for the Full Texas Disabled Veteran Homestead Exemption?
Texas Tax Code §11.131 uses a specific VA compensation and rating test. The statute does not say that a Veteran must satisfy both the 100% schedular and individual-unemployability paths. [2] [6]
Statutory Eligibility Test
- VA awarded 100% disability compensation because of a service-connected disability
- The Veteran has either a 100% disability rating or a VA determination of individual unemployability
- The property is the Veteran’s qualifying residence homestead
- The appraisal district approves the exemption application and evidence
What the Exemption Covers
- Total appraised value of the qualifying residence homestead
- Mandatory treatment by local ad valorem taxing units when statutory eligibility is established
- Potential midyear application when eligibility or a new homestead begins after January 1
- Only the qualifying residence homestead, not every property the Veteran owns
Can the Exemption Begin During the Year?
Yes. A person who qualifies after January 1 may receive the §11.131 exemption for the applicable portion of that tax year. A Veteran moving to a new qualifying residence homestead during the year may also receive prorated treatment after qualification and filing. Taxes can remain due for the portion of the year before the new exemption begins. [2]
What Property Tax Exemption Applies to a 10% to 90% Rating?
Tax Code §11.22 provides a fixed assessed-value exemption based on the service-connected rating. It can apply to one designated property and is not limited to the residence homestead. [3] [5]
| Service-connected disability rating | Maximum assessed-value exemption | Illustrative annual tax reduction at a 2% applicable rate |
|---|---|---|
| 10% to 29% | Up to $5,000 | Up to $100 |
| 30% to 49% | Up to $7,500 | Up to $150 |
| 50% to 69% | Up to $10,000 | Up to $200 |
| 70% to 100% | Up to $12,000 | Up to $240 |
The example multiplies the maximum exempt assessed value by a hypothetical 2% combined applicable rate. Actual savings depend on the property’s taxing units, taxable value, other exemptions and the tax rates applied to the exempted value.
Special $12,000 Eligibility
A disabled Veteran may qualify for a $12,000 exemption under §11.22 if the Veteran is at least 65 with a rating of at least 10%, is totally blind in one or both eyes, or has lost the use of one or more limbs.
One Designated Property
The exemption applies to one property chosen on the application and must be claimed against the same property for every applicable taxing unit. The applicant must be a Texas resident.
How Do You Apply for a Texas Disabled Veteran Property Tax Exemption?
File with the appraisal district for the county where the property is located. Do not send the application to VA, the Texas Comptroller or the county tax collector. [4] [5] [11]
Determine whether you are claiming the total homestead exemption, partial disabled Veteran exemption, donated-home exemption or a survivor provision.
Use Form 50-114 for residence-homestead exemptions or Form 50-135 for the partial §11.22 exemption.
Prepare the VA award or rating documentation, identification, property information and any survivor or donated-home records requested.
Use the Comptroller’s county directory or search “[Your County] appraisal district” and verify that the site is the official district.
Save the signed application, attachments, upload receipt, certified-mail record or date-stamped copy.
After approval, confirm the exemption appears in appraisal records and provide the final evidence to the mortgage servicer if taxes are escrowed.
| Claim | Primary form | Standard deadline | Late-filing rule |
|---|---|---|---|
| 100% or IU total residence-homestead exemption | 50-114 | April 30 | Veteran may generally file up to five years after the delinquency date |
| Surviving spouse under §11.131 | 50-114 | April 30 | Generally subject to the two-year residence-homestead late-filing window |
| Partial disabled Veteran exemption under §11.22 | 50-135 | April 30 | Generally up to five years after the delinquency date |
| Donated residence of partially disabled Veteran | 50-114 | April 30 | Veteran may generally receive the five-year rule; survivor timing differs |
Documents to Prepare
- VA rating, compensation or individual-unemployability documentation
- Texas identification and residence information required by the form
- Property address, legal description and appraisal account number if available
- Ownership records when the appraisal district requests them
- Marriage, death and prior-exemption records for surviving-spouse claims
- Charitable donation documents for a §11.132 claim
After the Application Is Filed
- Answer appraisal-district requests for additional information promptly
- Request written confirmation of approval, modification or denial
- Check the appraisal record for the correct tax year
- Review tax bills for each local taxing unit
- Ask about protest or review rights if the application is denied
- Notify the district if ownership or eligibility later changes
How Much Can a Disabled Veteran Save on Texas Property Taxes?
For a total §11.131 exemption, the best estimate starts with the real annual ad valorem tax bill that would otherwise apply after general homestead and other exemptions. [1] [7]
| Annual ad valorem tax before total Veteran exemption | Tax after approved total exemption | Potential annual reduction | Monthly equivalent |
|---|---|---|---|
| $4,800 | $0 | $4,800 | $400 |
| $7,200 | $0 | $7,200 | $600 |
| $9,600 | $0 | $9,600 | $800 |
| $12,000 | $0 | $12,000 | $1,000 |
These examples assume the entire stated amount is ad valorem tax covered by the approved total exemption. They do not represent a statewide average, county quote or promise that every property-related charge becomes zero.
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How to Estimate a Partial Exemption
Multiply the approved exempt assessed value by the combined tax rate applicable to that value. For example, a $12,000 assessed-value exemption at a hypothetical 2% rate produces up to $240 per year in tax reduction. If the applicable rate is 1.5%, the same assessed-value exemption produces up to $180.
$5,000 Exemption
Typical maximum tier for a 10% to 29% service-connected rating.
$10,000 Exemption
Typical maximum tier for a 50% to 69% service-connected rating.
$12,000 Exemption
Typical maximum tier for a 70% or higher rating or certain special conditions.
How Does the Texas Exemption Affect a VA Loan?
An approved exemption can lower the property-tax portion of a total housing payment. It does not change the note rate, erase mortgage principal or guarantee that a lender will approve a higher loan amount. [10]
Before Verified Tax Relief
Illustrative principal and interest: $2,300. Homeowners insurance: $250. Property-tax escrow: $600.
After Verified Total Exemption
Illustrative principal and interest: $2,300. Homeowners insurance: $250. Covered property-tax escrow: $0.
In this example, eliminating $600 from the monthly tax estimate reduces total housing expense by $600. On $8,000 of gross monthly income, that difference equals 7.5 percentage points of gross income. The actual effect on PITI payment and DTI depends on all debts, income, insurance, HOA costs and lender underwriting.
VA disability evidence does not itself update the tax roll or mortgage escrow account.
It may require an approval notice, updated tax record or bill before using a reduced estimate.
Will the Servicer Adjust Escrow Immediately?
Not necessarily. Under current 12 CFR §1024.17, a servicer must analyze escrow when establishing the account and at the end of each escrow computation year, but it may conduct an analysis at other times. If the servicer knows the next tax charge, it must use that amount when estimating escrow disbursements. Provide the approved exemption and corrected tax information, then request an escrow review. [10]
For complete affordability analysis, review VA loan qualification and use the VA affordability calculator with the tax estimate your lender will actually accept.
Does a Surviving Spouse Keep the Texas Disabled Veteran Exemption?
A qualifying surviving spouse may continue the total §11.131 exemption on the same residence homestead if the statutory marriage, remarriage and residence conditions are met. [2] [6]
Same Homestead
- The spouse was married to the disabled Veteran when the Veteran died
- The spouse has not remarried since the Veteran’s death
- The property was the spouse’s residence homestead when the Veteran died
- The property remains the spouse’s residence homestead
Moving to Another Texas Homestead
An unremarried surviving spouse may transfer an exemption amount to a subsequently qualified homestead. The transferred amount is based on the dollar amount of appraised value exempted on the former homestead in the last qualifying year, not the former annual tax bill.
The new property may not receive a total exemption if its appraised value exceeds the transferred exempt amount.
What About the Partial §11.22 Exemption?
A surviving spouse may retain the deceased Veteran’s partial exemption amount on one designated property while the spouse remains unmarried. Different rules apply to surviving children and to a service member who died on active duty. Form 50-135 covers these §11.22 claims. [3] [5]
New Qualifying-Veteran Survivor Provision
Texas added a separate total residence-homestead exemption under §11.136 for an eligible unremarried surviving spouse of a Veteran who died because of a condition or disease presumed under federal law to have been service connected. This is distinct from inheriting a §11.131 exemption and requires its own statutory review and Form 50-114 application. [1] [7]
Which Special Texas Property Tax Rules Should Veterans Know?
A full or partial rating is not the only factor. Property source, ownership timing, homestead use and the type of claim can materially change the result.
Donated Residence Homestead
Under §11.132, a partially disabled Veteran may receive a percentage exemption tied to the disability rating when a qualifying charitable organization donated the homestead at no cost or at a qualifying reduced cost.
Non-Homestead Property
The partial §11.22 exemption can apply to one designated property and does not require that property to be the Veteran’s residence. The total §11.131 exemption is restricted to a qualifying residence homestead.
New Home Acquired After January 1
Certain residence-homestead exemptions can begin for the applicable portion of the year after acquisition or qualification. File promptly and ask the appraisal district which proration rule applies.
Multiple Owners
Ownership interests, residence use and the exemption requested can affect how much value is exempt. Complete the ownership fields on Form 50-114 and provide supporting records when requested.
Pending VA Claim
A pending claim is not the same as an issued VA decision. If VA later awards qualifying compensation with an earlier effective date, ask the appraisal district which tax years can be corrected under the applicable late-filing statute.
Exemption Approval vs. Appraised Value
The total exemption can eliminate ad valorem tax without preventing the appraisal district from maintaining an appraised value. Review appraisal notices because value records can matter if eligibility ends or the property is transferred.
Real-World Texas Disabled Veteran Scenarios
These examples illustrate decision paths. The county appraisal district and mortgage lender must review the actual documents and property.
VA Pays 100% Compensation
The Veteran owns and occupies the Texas home as a residence homestead. The application includes the VA award documentation requested by Form 50-114. The appraisal district reviews the statutory §11.131 test rather than relying only on the words “P&T.”
IU With 100% Compensation
The Veteran’s combined schedular rating is below 100%, but VA has awarded 100% compensation based on individual unemployability. Section 11.131 expressly recognizes the individual-unemployability path, subject to the remaining requirements.
Partial Exemption on One Property
The Veteran claims up to $12,000 from assessed value under §11.22 using Form 50-135. At a hypothetical 2% applicable rate, the maximum illustration is $240 annually, not elimination of the full tax bill.
Closing in August
A qualifying Veteran purchases and occupies a new Texas homestead after January 1. The Veteran files Form 50-114 promptly. The district determines the applicable start date and the taxes due for the pre-exemption portion of the year.
Transferred Exempt Value Is Smaller Than New Home
The surviving spouse has not remarried and transfers the prior exemption amount to a more valuable homestead. The transferred exempt appraised value may leave part of the new home’s value taxable.
Exemption Approved After Closing
The loan closed using a full tax estimate. After the appraisal district updates the record, the borrower gives the approval and corrected tax information to the servicer and requests an escrow analysis. The payment does not change merely because the application was submitted.
What Mistakes Can Delay or Reduce the Texas Exemption?
Most avoidable problems involve using the wrong form, overstating eligibility, missing survivor distinctions or budgeting from an unapproved tax estimate.
Application Mistakes
- Sending the application to the Comptroller instead of the appraisal district
- Using Form 50-114 for a standard §11.22 partial exemption
- Using Form 50-135 for the total residence-homestead exemption
- Submitting a benefits summary that does not show the needed VA findings
- Assuming the standard late-filing window is identical for Veterans and surviving spouses
- Failing to retain a complete submission record
Mortgage and Budget Mistakes
- Assuming a pending exemption creates a zero-tax Loan Estimate
- Estimating savings from home value without accounting for existing exemptions
- Treating an assessed-value exemption as a cash payment
- Assuming the servicer automatically performs an immediate escrow analysis
- Combining state property tax relief with the federal funding-fee exemption
- Ignoring homeowners insurance, HOA dues and non-tax property charges
Frequently Asked Questions
Straight answers to common searches about Texas disabled Veteran property tax exemptions.
Do 100% disabled Veterans pay property tax in Texas?
A Veteran satisfying Tax Code §11.131 can receive an exemption of the total appraised value of the qualifying residence homestead. Confirm VA compensation, rating or IU status, homestead eligibility and appraisal-district approval.
Does a Texas Veteran need a permanent-and-total rating?
Texas §11.131 refers to 100% disability compensation and either a 100% rating or individual unemployability. Form 50-114 also asks about permanent total disability under 38 CFR §4.15. Submit the requested VA evidence for appraisal-district review.
Does individual unemployability qualify for the full exemption?
It can. Section 11.131 expressly includes a VA determination of individual unemployability when the Veteran has been awarded 100% disability compensation due to service-connected disability.
What exemption does a 70% disabled Veteran receive in Texas?
A qualifying Texas resident with a 70% service-connected rating may receive up to $12,000 off the assessed value of one designated property under §11.22. This does not ordinarily eliminate the entire tax bill.
Which form is used for the 100% disabled Veteran exemption?
Use Texas Comptroller Form 50-114, Application for Residence Homestead Exemption, and file it with the appraisal district where the property is located.
Which form is used for the partial disabled Veteran exemption?
Use Form 50-135 for a Tax Code §11.22 disabled Veteran or survivor exemption. This is separate from the Form 50-114 residence-homestead application.
What is the Texas filing deadline?
April 30 is the standard exemption-application deadline. Texas allows certain late applications, including a five-year period for qualifying Veteran claims under §11.131, §11.132 or §11.22. Survivor windows can be shorter.
Can a Veteran receive a refund for prior years?
Potentially. If a qualifying late application is approved, the tax rolls may be corrected and paid tax on the exempt portion may be refunded. The available years depend on the exemption, applicant and statutory filing period.
Can the partial exemption apply to a rental property?
Section 11.22 can apply to one designated property and does not require that property to be a residence homestead. The applicant and property must still satisfy the statutory requirements.
Does a surviving spouse keep the full exemption after moving?
An eligible unremarried spouse may transfer the former homestead’s exempt appraised-value amount to another qualifying Texas homestead. The new home may remain partly taxable if it has a higher appraised value.
Will a lender use the exemption before it is approved?
Possibly, but lender documentation policies differ. A lender may require an approval notice, tax record or other reliable evidence before using a reduced property-tax estimate for qualification.
Is the Texas exemption the same as the VA funding-fee exemption?
No. Texas property tax relief is a state and local ad valorem tax benefit. The VA funding-fee exemption is a separate federal loan benefit with different eligibility and documentation rules.
Sources and Verification Method
This guide prioritizes the current Texas Tax Code, Texas Comptroller guidance and forms, current eCFR text, VA.gov and CFPB escrow rules. Local appraisal districts make parcel-specific exemption decisions.
- Texas Comptroller: Property Tax Exemptions. Current overview of residence homestead, disabled Veteran and survivor exemptions.
- Texas Comptroller: 100 Percent Disabled Veteran and Surviving Spouse FAQ. Eligibility, midyear qualification, filing and survivor transfer rules.
- Texas Comptroller: Disabled Veteran and Surviving Spouse FAQ. Partial exemption, Form 50-135 and late-filing guidance.
- Texas Comptroller Form 50-114. Residence Homestead Exemption Application, revised February 2026.
- Texas Comptroller Form 50-135. Disabled Veteran’s or Survivor’s Exemption Application under §11.22.
- Texas Tax Code Chapter 11. Sections 11.22, 11.131, 11.132, 11.136, 11.431 and 11.439.
- Texas Comptroller: Texas Property Tax Basics, January 2026. Current homestead amounts, disabled Veteran exemptions and late applications.
- eCFR: 38 CFR §4.15. Current federal definition and treatment of total disability ratings.
- U.S. Department of Veterans Affairs: Funding Fee and Closing Costs. Federal funding-fee rates and exemption categories.
- eCFR: 12 CFR §1024.17. Escrow analyses, estimates, cushions, shortages and surpluses.
- Texas Comptroller: County Appraisal District Directory. Official contact directory for appraisal districts and county tax offices.
- Texas Comptroller: Tax Rates and Levies. Reported taxing-unit rates for parcel-level research.
What We Verified
Current exemption tiers, statutory eligibility, forms, standard and late filing, midyear qualification, survivor transfer rules, the 2026 general school homestead amount and federal escrow provisions.
What Must Be Verified Locally
The parcel’s ownership, residence-homestead status, approved exemption, appraised value, taxing units, tax rates, first affected bill and any mortgage-servicer documentation requirements.
For a nationwide comparison, visit the Disabled Veteran Property Tax Calculator and state directory.
Verify the Tax Benefit Before You Set Your Home Budget.
Get the appraisal-district decision and a supportable tax estimate, then ask a VA loan specialist to review the full monthly payment and qualification picture.