Texas Honors Veterans with Real Tax Relief
Texas provides some of the most generous property tax exemptions in the country for disabled veterans. If you are a veteran with a service-connected disability rated by the U.S. Department of Veterans Affairs (VA), you may qualify for a partial or complete exemption from property taxes on your home.
The amount you save depends on your VA disability rating. Veterans rated at 100% disabled — or those rated as unemployable due to disability — can receive a complete exemption from all property taxes on their homestead. That means zero property taxes, period.
Even veterans with lower disability ratings receive meaningful savings. This guide explains exactly how the exemption works, who qualifies, and how to apply.
Exemption Amounts by Disability Rating
Texas law (Tax Code Section 11.22) sets the exemption amounts based on your VA disability rating. Here are the current amounts:
- 10% to 29% disability: Up to $5,000 off your assessed value
- 30% to 49% disability: Up to $7,500 off your assessed value
- 50% to 69% disability: Up to $10,000 off your assessed value
- 70% to 99% disability: Up to $12,000 off your assessed value
- 100% disability: Complete (total) exemption — you pay no property taxes on your homestead
These dollar amounts may seem modest at lower ratings, but the 100% exemption is extraordinarily valuable. On a $300,000 home in Harris County, that can mean saving $7,000 to $9,000 or more per year in property taxes.
The 100% Disabled Veteran Exemption
If you have a 100% disability rating from the VA — or if you are rated as totally disabled due to individual unemployability (TDIU) — you qualify for a total exemption from property taxes on your homestead. This is the most complete property tax benefit available in Texas.
Here is what the 100% exemption provides:
- No property taxes at all on your primary residence
- No school taxes, no county taxes, no city taxes, no MUD taxes — everything is exempt
- The exemption applies to the home and up to 20 acres of land used as your homestead
This is not a reduction. It is a complete elimination of your property tax bill on your home.
Who Qualifies?
To qualify for the disabled veteran property tax exemption, you must meet these requirements:
- You are a veteran of the U.S. armed forces. This includes Army, Navy, Air Force, Marines, Coast Guard, and Space Force.
- You have a service-connected disability rated by the VA. You must have an official VA disability rating letter.
- You own a home in Texas and it is your primary residence (homestead).
Important: The disability must be service-connected. This means the VA determined your condition was caused by or worsened during your military service. Disabilities that are not service-connected do not qualify for this exemption.
Required Documentation
When you apply, you will need to provide:
- VA disability rating letter — This is your official letter from the Department of Veterans Affairs stating your disability percentage. You can request a copy from the VA if you do not have one.
- DD-214 — Your Certificate of Release or Discharge from Active Duty. This proves your military service.
- Texas driver's license or state ID — The address must match your property address.
- Form 50-135 (Application for Disabled Veteran's or Survivor's Exemption) — Available from HCAD or the Texas Comptroller's website.
How to get your VA letter: If you need a copy of your disability rating letter, you can request one through va.gov, by calling the VA at 1-800-827-1000, or by visiting your local VA regional office.
How to Apply
Step 1: Get the Application Form
Download Form 50-135 from the Texas Comptroller's website or from hcad.org. This is the specific form for the disabled veteran exemption — it is different from the standard homestead exemption form (50-114).
Step 2: Fill Out the Form
The form asks for your basic information, property details, and disability rating. Fill in every section that applies to you. Be sure to check the box that matches your disability percentage.
Step 3: Gather Your Documents
Attach copies of:
- Your VA disability rating letter
- Your DD-214
- Your Texas driver's license or state ID
Tip: Make copies of everything before you send it. Keep the originals in a safe place.
Step 4: Submit Your Application
You can submit your application:
- Online through the HCAD website at hcad.org
- By mail to: Harris County Appraisal District, P.O. Box 922012, Houston, TX 77292-2012
- In person at the HCAD office: 13013 Northwest Freeway, Houston, TX 77040
Step 5: Wait for Confirmation
HCAD will process your application and send you a confirmation. This usually takes a few weeks. If they need additional information, they will contact you.
When Does the Exemption Take Effect?
The disabled veteran exemption takes effect on January 1 of the year you apply, provided you met the qualifications on that date. If your disability rating changes (for example, if you receive a higher rating from the VA), you can update your exemption by filing a new application.
You can also file retroactively for up to five years if you qualified but did not apply in prior years. This means you may be eligible for a refund of taxes you overpaid.
Surviving Spouse Benefits
If a veteran with a 100% disability rating passes away, the surviving spouse can continue to receive the total property tax exemption, provided:
- The surviving spouse has not remarried
- The surviving spouse continues to live in the home as their primary residence
- The surviving spouse was married to the veteran at the time of death
The surviving spouse must apply for the exemption using Form 50-135 and provide the veteran's death certificate along with the VA disability documentation.
For surviving spouses of veterans killed in action: If a veteran was killed in the line of duty, the surviving spouse may also qualify for a total property tax exemption, regardless of the veteran's disability rating at the time of death. Contact HCAD for details.
Can You Combine This with Other Exemptions?
The disabled veteran exemption works alongside other exemptions in specific ways:
- With the homestead exemption: If you have a partial disabled veteran exemption (less than 100%), you can also have the homestead exemption for additional savings.
- With the Over-65 exemption: You can have both, but at 100% disabled veteran status, the total exemption already eliminates your entire tax bill, so the Over-65 exemption would not add further benefit.
- Multiple properties: The exemption only applies to your primary residence. Investment properties and second homes do not qualify.
Common Questions
What if my disability rating increases? File a new application with HCAD showing your updated rating. You will receive the higher exemption going forward.
Do I need to reapply each year? No. Once approved, the exemption stays on your property as long as you own it and live in it.
What if I move to a new home? You will need to apply for the exemption again at your new property. It does not transfer automatically.
Does this exemption apply to property I inherited? Only if the property is your primary residence and you meet all other qualifications.
Check If Your Property Is Fairly Assessed
Even with the disabled veteran exemption, it is worth making sure your home is assessed at a fair value. If HCAD has your home valued too high, it affects your exemption calculations (for partial exemptions) and could be corrected through a protest.
Visit claimengine.org to enter your address and get a free, instant property tax analysis. We compare your assessed value to recent sales of similar homes in your area and show you if you are overpaying. No savings, no fee.