Disabled Veteran Property Tax Exemption in Texas: How to Qualify and Apply

Key Takeaways:

• How to Qualify and Apply: Texas offers a property tax exemption for disabled veterans, providing significant savings based on VA disability ratings and property ownership status.
• Surviving Spouse Benefits and Rules: Surviving spouses can receive exemptions, contingent on marriage status, homestead designation, and VA disability ratings, supporting financial stability.
• Important Deadlines and Required Forms: Proper documentation and adherence to deadlines are crucial for claiming and maintaining exemptions, with the possibility of combining multiple exemptions for maximized savings.

Struggling to pay property tax exemptions as a disabled veteran? The Lone Star State offers a disabled veteran property tax exemption that provides real, meaningful savings for those who have served our country and bear lasting wounds from their service. Knowing how to qualify, how the process unfolds, and how those savings can reshape your annual tax bill is what truly unlocks its value.

At Texas Tax Protest, our team is dedicated to cutting through red tape and making property tax law less intimidating. In this guide, you’ll find straightforward answers about eligibility, the application steps, and how the numbers add up. Most importantly, you’ll see how this exemption honors your service by protecting what matters most: your financial stability and your home.

Service-Connected Disability Ratings and Tax Savings

Property taxes in Texas can feel confusing, and disability ratings add another layer of detail. Texas recognizes and rewards veterans with service-connected disabilities by offering significant property tax exemptions, but the amount you save depends directly on your official disability rating. Let’s break it down:

How Disability Ratings Impact Your Tax Exemption

The U.S. Department of Veterans Affairs assigns disability ratings in 10% increments, ranging from 10% to 100%. In Texas, the higher your rating, the larger the exemption you can receive on your primary residence:

• 10% to 29% disability: $5,000 exemption from the assessed property value
• 30% to 49% disability: $7,500 exemption
• 50% to 69% disability: $10,000 exemption
• 70% to 99% disability: $12,000 exemption
• 100% disability: Fully exempt from property taxes

According to the Texas Veterans Commission, these savings can also extend to surviving spouses and, in some cases, children under 18. However, cash can’t be taken at closing from a seller’s tax proration, so the exemption must be applied toward closing costs.

If your disability rating increases, you might qualify for a bigger exemption in the following tax year. Make sure to submit your updated VA documentation as soon as it arrives to prevent delays in applying the right level of relief.

What Counts as “Service-Connected”?

The VA defines a service-connected disability as an injury or illness incurred or worsened during active military service. Only those officially recognized ratings qualify for this exemption. Your VA decision letter serves as the key piece of documentation to prove eligibility when filing with your county appraisal district. When you connect your service record with Texas property tax law, these exemptions bring both recognition and tangible savings.

Surviving Spouse Benefits and Rules

Losing a loved one who served our country brings immense challenges, and navigating property tax exemptions shouldn’t be one of them. Texas law recognizes the sacrifices made by disabled veterans and extends certain property tax exemption benefits to their surviving spouses. To qualify as a surviving spouse and receive continuing property tax exemptions, several rules come into play:

• Marriage Status: The surviving spouse must have been married to the veteran at the time of their passing.
• Residence Requirement: The home must remain the surviving spouse’s principal residence, meaning it’s where they primarily live.
• No Remarriage: Eligibility continues only until the surviving spouse remarries. If remarriage occurs, the exemption typically ends.

How does the exemption amount work? For example, if a veteran received a total (100%) disability rating from the VA, the surviving spouse may qualify for a 100% exemption on the property’s appraised value. In cases where the veteran had a partial exemption based on a disability percentage (for example, 30%, 50%, or 70%), the spouse would inherit that same percentage as long as all other qualifications are met.

Required Forms: 50-114 and 50-135 Walk-Through

Navigating the property tax exemption process starts with two official forms: 50-114 and 50-135. Completing these forms correctly opens the door to valuable property tax relief, so let’s break down what each one covers and how to tackle them.

Form 50-114: Application for Residence Homestead Exemption

Form 50-114 is all about proving the home is your primary residence, which is the first step in claiming most tax exemptions for homeowners—including those reserved for disabled veterans. You’ll need to provide:

• Basic Property Details: Legal description, property address, and owner information.
• Ownership Documentation: Title deed, closing statement, or other proof that you own the home.
• Texas Driver’s License or State ID: The address on your ID must match the property address.

When filling out the form, double-check that the owner’s name matches your legal documentation. Attach all supporting paperwork before submitting—missing documents can trigger delays.

Form 50-135: Disabled Veteran or Survivor Exemption Application

Form 50-135 zeroes in on the specific exemption available to disabled veterans and their surviving spouses or children. For this form, be ready with:

• Veteran’s Administration (VA) Disability Letter: This doc must clearly state the disability rating granted by the VA.
• Property Information: The same details as on 50-114—make sure they match.
• Relationship Proof (for survivors): Marriage license or birth certificate, depending on your status as a spouse or child.

On this form, select the exemption level matching your disability rating—the higher the rating, the greater the property tax break. Attach the VA letter showing your current rating and check everything for accuracy.

Submitting Your Forms

Each form has submission instructions, usually involving mailing it to your county’s appraisal district. For veterans living in Tarrant County, submit your paperwork directly to TAD. Keep a copy for your records and note the date you sent them. Following up may be necessary if you don’t hear back within a few weeks. 

Important Deadlines for Filing Applications

Deadlines carry real weight when applying for the disabled veteran property tax exemptions, and missing one can bar you from receiving savings you have already earned through your service. Here’s what you need to know to stay on track:

The official deadline to submit your disabled veteran property tax exemption application is April 30th of the tax year for which you wish to claim the exemption. Applications are accepted by your local county appraisal district. Keep in mind that every county has its own procedures, so double-check any local requirements or additional paperwork.

If April 30th sneaks up on you, hope isn’t lost. Texas law allows for late applications until two years after the delinquency date, but applying late means you’ll need to submit supporting documentation explaining the missed deadline. While late filings may still secure the exemption, any potential refund or reduction depends on individual circumstances and isn’t guaranteed.

Gathering Military and Medical Documentation

Clear, complete records help your exemption move forward without delays. This section outlines the core documents and simple ways to assemble a clean packet that reflects your service and supports your claim.

• Start With Proof of Service: To begin, pull your DD214 or other official discharge papers. This record shows service dates, branch, and discharge status. Submit a legible copy with all required pages. Smudges and missing pages slow reviews.
• Secure Your VA Disability Award Letter: Next, include your VA disability award letter that states your current service-connected rating. Texas exemption amounts tie directly to that percentage, so accuracy matters. Request an updated letter before filing if the rating changed recently.
• Add Medical Support for Accessibility Modifications: For home adaptations linked to your service-connected condition, attach brief medical notes that explain the need. Examples include wheelchair ramps, widened doors, or bathroom modifications. Keep the statement clear and specific to the accommodation.
• Organize, Copy, and Label Your Packet: Before you submit, place documents in an order: DD214, VA award letter, medical notes, and any county forms. Add your property address and contact details on the first page. Redact sensitive data that’s not required, while keeping your name, service dates, property address, and rating visible.
• How Our Team Can Help: As you prepare, our team can review your checklist, flag missing items, and suggest small fixes that keep processing on track. Simple steps like replacing a low-resolution scan or adding a page number can prevent back-and-forth with the appraisal district.

Combining Disabled Veteran and Other Homestead Exemptions

Combining different property tax exemptions can make a meaningful difference for disabled veterans and their families. Each exemption applies in its own way, and when paired together, they lower the taxable value of a home even further. Here’s how the main ones interact:

• Standard Homestead Exemption: For homeowners who live in their property as a primary residence, this exemption reduces the appraised value used for school district taxes. For example, a $250,000 home could see a $40,000 reduction, lowering the taxable value to $210,000.
• Disabled Veteran Exemption: Veterans with a service-connected disability rating can subtract an additional flat dollar amount from the reduced home value. A rating between 30% and 49% may qualify for around $12,000 in further deductions, which would bring the example home down to $198,000.
• Senior or Surviving Spouse Exemptions: In addition to the homestead and disabled veteran exemptions, those over 65 or surviving spouses of qualifying veterans may be eligible for more reductions. These savings layer on top of the others, bringing property taxes down to a more manageable level.

Final Thoughts

For disabled veterans in Texas, property tax exemptions can make a meaningful difference by reducing financial strain and honoring years of service. These exemptions may feel complicated at first, particularly when local appraisal districts require documentation and precise calculations. Yet with the right guidance, the path becomes clearer, and the potential savings become more accessible.

Here at Texas Tax Protest, we believe every Texas homeowner deserves a fair shot at property tax savings. When questions arise or the process feels stacked against you, remember that you don’t have to go it alone. 

Read More:

• How Local School Districts and Governments Impact Your Property Taxes
• Texas Property Tax Relief Bills: Key Updates And Potential Savings
• What Really Happens During a Property Tax Protest Hearing?

Frequently Asked Questions About the Disabled Veteran Property Tax Exemption in Texas

How is disability percentage determined for the exemption?

The disability percentage is set by the U.S. Department of Veterans Affairs (VA). The VA assigns a service-connected disability rating based on how much a veteran’s condition affects their everyday life and ability to work. 

Is there a minimum disability rating required?

Yes, a disability rating of at least 10% is required to qualify. Exemption amounts increase as your disability percentage goes up. Veterans with a 100% disability, either totally disabled or with a determination of “unemployability,” may be eligible for a full property tax exemption on their primary residence.

How much can I save with this exemption?

The exemption can offer dramatic savings. For veterans with a 10% to 90% VA disability rating, the exemption amount ranges from $5,000 to a full exemption from your appraised property value. Veterans rated 100% disabled, or those with the “unemployability” designation, can potentially pay zero property tax on their main homestead. 

Do survivors or spouses of disabled veterans qualify?

Yes, certain surviving spouses and minor children may qualify for this exemption. A surviving spouse who hasn’t remarried and resides at the homestead can continue receiving the exemption their spouse qualified for. Be sure to check your county appraisal district’s specific requirements to see what documentation is needed.

Do I need to reapply each year?

No, disabled veterans and qualifying survivors generally don’t need to reapply annually once the exemption is granted. However, if your primary residence changes or your eligibility status shifts, you’ll need to file an updated application with your new county appraisal district.

Does the exemption transfer if I move to another home in Texas?

Yes, you can transfer your disabled veteran exemption to a new primary residence anywhere in Texas. Just notify the new county appraisal district and provide the required documentation. Your exemption amount will be adjusted for the value of your new home.

Can I combine this exemption with other property tax exemptions?

Absolutely, you can stack the disabled veteran exemption with other property tax exemptions like the general homestead exemption, over-65 exemption, or exemptions for surviving spouses of first responders.