Texas Disabled Veteran Exemption: Property Tax Relief Guide for Veterans

If you are a disabled veteran living in Texas, you can claim a property tax exemption that reduces the taxable value of your home based on your VA disability rating. The exemption applies each year and can be combined with the general homestead exemption and other local exemptions. Veterans with a 100 percent disability rating qualify for a full exemption on their residence homestead, meaning no property tax is due on that home.

The Texas disabled veteran exemption is available to veterans who have a service-connected disability rating of at least 10 percent from the U.S. Department of Veterans Affairs. Surviving spouses may also qualify. You file your application through your county appraisal district using Form 50-136 and provide your VA disability compensation letter as proof of your rating. Once approved, the exemption stays in effect as long as you continue to own and occupy the property.

This guide covers everything you need to know, from who qualifies and how much you can save to the documents you need and the deadlines you must meet.

Who Qualifies for the Texas Disabled Veteran Exemption

The exemption is governed by Section 11.22 of the Texas Property Tax Code. To qualify, you must meet three basic requirements.

First, you must be a veteran who was honorably discharged from the U.S. armed forces. Second, you must have a service-connected disability rating of at least 10 percent from the VA. Third, the property you are claiming the exemption on must be your residence homestead, meaning the home you live in as your primary residence.

You can claim the exemption on only one property at a time. This is the same rule that applies to the general homestead exemption. If you own multiple homes, only the one you actually occupy qualifies.

Surviving Spouse Eligibility

The surviving spouse of a disabled veteran may qualify for the same exemption if the veteran died as a result of a service-connected disability. The surviving spouse of a member of the U.S. armed forces who was killed in action also qualifies. You do not need to have a disability rating yourself to claim the exemption as a surviving spouse, but you must own and occupy the property as your residence homestead.

Donated Residence Exemption

There is a separate provision for disabled veterans who receive a donated residence adapted for their disability. If a charitable organization or another person donates a home that has been specially adapted to accommodate the veteran's disability, the property may qualify for a total property tax exemption. This is a distinct exemption from the standard disability rating-based exemption and requires its own application.

How Much You Can Save Based on Your Disability Rating

The amount of the exemption depends on your VA disability rating. The exemption reduces the appraised value of your home before your local tax rate is applied. It does not give you a cash refund. It lowers your tax bill by removing a portion of your home's value from taxation.

The exemption amounts set by Texas law are as follows. A veteran with a disability rating between 10 and 29 percent receives a $5,000 exemption from the appraised value of the property. At a rating of 30 to 49 percent, the exemption increases to $7,500. At 50 to 69 percent, the exemption is $10,000. At 70 to 99 percent, the exemption is $12,000.

For a veteran with a 100 percent disability rating, the exemption is a full exemption on the residence homestead. This means the entire appraised value of the home is exempt from property taxes. The same applies to veterans rated as individually unemployable, which is considered a 100 percent disability rating by the VA for property tax purposes.

The exemption is deducted from the appraised value of the home after any other applicable exemptions have been applied. For example, if your home is valued at $250,000 and you claim a $40,000 general homestead exemption and a $12,000 disabled veteran exemption for a 70 percent rating, your taxable value is reduced by $52,000 before your local tax rate is applied.

How to Apply: Form 50-136 and Required Documents

Applying for the Texas disabled veteran exemption requires filing an application with your county appraisal district. The form you need is the Application for Residence Homestead Exemption for a Disabled Veteran or Surviving Spouse, which the Texas Comptroller designates as Form 50-136.

You can obtain this form from your county appraisal district office or download it from their website. Most county appraisal districts in Texas offer the form as a PDF on their website, along with instructions for submission.

The documents you need to submit with the application include a copy of your VA disability compensation letter, also known as a VA award letter or benefits summary letter. This letter must show your service-connected disability rating. If you are applying as a surviving spouse, you will also need to provide documentation showing your relationship to the deceased veteran and proof that the death was service-connected or occurred while on active duty.

You will also need to provide proof of ownership of the property and proof that it is your residence homestead. A copy of your deed and a recent utility bill showing your name and the property address are typically sufficient.

Where to File

You file the application with your county appraisal district, not with the Texas Comptroller or the VA. Each county has its own appraisal district office, usually located in the county seat. You can find the contact information and address for your county appraisal district on the Texas Comptroller's property tax division website or by searching for your county name followed by "appraisal district."

Deadline to File

The deadline to file a disabled veteran exemption application in Texas is generally April 30 of the tax year for which you are seeking the exemption. If you purchased and occupied your home after January 1 of the current year, you may file the application within 30 days of acquiring the property. If you already hold an active exemption and your disability rating changes, you can file an updated application to adjust the exemption amount for the next tax year.

Combining the Disabled Veteran Exemption With Other Exemptions

One of the most valuable features of the Texas property tax system is that exemptions can be stacked on the same property. The disabled veteran exemption does not replace your general homestead exemption. You benefit from both.

If you are 65 or older and a disabled veteran, you can also claim the over-65 exemption on the same property. Texas law allows you to hold the general homestead exemption, the disabled veteran exemption, and the over-65 exemption simultaneously. Each one reduces the taxable value of your home by its specified amount.

The over-65 exemption provides additional savings and includes a tax ceiling provision that can freeze your school district taxes at their current level. If you qualify for both exemptions, contact your county appraisal district to ensure all available exemptions are applied to your account.

If you also own agricultural land, the rules are different because land used for farming or ranching is valued based on its agricultural productivity rather than its market value. You can hold a disabled veteran exemption on your residence homestead and an agricultural valuation on your land in the same county. These are separate tax treatments for separate portions of your property.

For more on how agricultural valuation works, read our guide on what qualifies as an ag exemption in Texas.

What If Your Disability Rating Changes

Your VA disability rating can change over time. If your rating increases or decreases, you should notify your county appraisal district and file an updated Form 50-136 with your new VA letter. The change takes effect for the next tax year if you file after the April 30 deadline.

If your rating increases from 90 percent to 100 percent, for example, your exemption moves from a $12,000 reduction to a full exemption on your residence homestead. This is a significant change and should be filed as soon as your updated VA letter arrives.

If your rating decreases, the county appraisal district may also adjust your exemption downward. Texas law requires that you notify the appraisal district of any change in your disability status that affects your eligibility for the exemption. Failure to do so could result in penalties, including back taxes and interest.

What About Property Tax Protests

Even with the disabled veteran exemption, you still receive a property tax bill each year, unless you hold a 100 percent rating with a full exemption. The exemption reduces the taxable value, but the remaining value is still subject to taxation.

If you believe the appraised value of your home is too high, you have the right to file a protest with your county appraisal district. The protest process is the same for disabled veterans as it is for other homeowners. You file a notice of protest with the Appraisal Review Board by May 15 or within 30 days of receiving your notice of appraised value, whichever is later.

For a full breakdown of how to protest your property tax appraisal, see our guide on how to protest your property tax appraisal in Texas.

Special Considerations for Surviving Spouses

If you are the surviving spouse of a disabled veteran and you have remarried, you may still qualify for the exemption under certain circumstances. Under Texas law, a surviving spouse who remarries after age 55 may retain the exemption. If you remarried before age 55, you are no longer eligible.

A surviving spouse who receives the exemption may continue to hold it on the same property even if they move to a different home, as long as the new home is their residence homestead. You should file a new application for the new property and provide documentation of your continued eligibility.

County-Level Variations and Local Options

While the standard disabled veteran exemption amounts are set by state law, some Texas counties offer additional local option exemptions for disabled veterans. These may include additional percentage reductions or fixed-dollar exemptions approved by the county voters.

Taxing units such as cities, counties, and junior college districts may also adopt optional exemptions for disabled veterans. These vary by location and are not available in every county. To find out what additional exemptions are available in your area, contact your county appraisal district or check their website.

The standard state-mandated exemptions for disabled veterans apply to all taxing units, including school districts, cities, and counties. The optional local exemptions are in addition to the state amounts.

Where to Go Next

The Texas disabled veteran exemption is one of the most straightforward property tax relief programs available to veterans in the state. If you have a VA disability rating of at least 10 percent and you own your home, you are almost certainly leaving money on the table by not filing. The application is free, the documentation is minimal, and once approved, the savings apply every year without needing to refile.

Start by downloading Form 50-136 from your county appraisal district's website. Gather your VA disability award letter and your proof of ownership and residency. Submit the application before April 30 to ensure the exemption takes effect for the current tax year.

If you also have agricultural or timber land, you may qualify for additional property tax savings through an agricultural valuation. Read our complete guide to the Texas ag exemption to learn how land used for farming, ranching, or timber production is taxed at a lower rate.

And if you are looking to maximize your total property tax savings, the Texas homestead exemption guide explains how to file for the general residence homestead exemption, which you should hold alongside your disabled veteran exemption.