Save Thousands: Texas Veteran Property Tax Exemption 2026

Texas Disabled Veteran Property Tax Exemption 100% 2026

SEO Title: Texas 100% Disabled Veteran Property Tax Exemption 2026

Meta Description: Learn how 100% disabled Texas veterans can get a total property tax exemption for 2026. Eligibility, application process, required forms, and new 2026 law changes.

URL Slug: /texas-100-disabled-veteran-property-tax-exemption-2026

100% Disabled Texas Veterans Pay No Property Tax on Their Homestead

Texas law provides a total (100%) property tax exemption on the residence homestead of veterans who have a 100% service-connected disability rating. This exemption eliminates all ad valorem taxes—including school district, county, city, and special district taxes—on the veteran’s primary residence. It also extends to surviving spouses of veterans who qualified for the exemption at the time of death, as well as surviving spouses of U.S. armed service members killed or fatally injured in the line of duty .

Quick Facts

What Is the 100% Disabled Veteran Property Tax Exemption in Texas?

The 100% disabled veteran property tax exemption in Texas is a constitutional and statutory benefit that completely eliminates property taxes on a qualifying veteran’s primary residence. This is not a partial reduction or deferral—it is a total exemption from all ad valorem taxes levied by any taxing unit in the state.

Under Texas Tax Code Section 11.131, veterans rated 100% permanently and totally disabled, as well as those receiving Individual Unemployability (IU) compensation, qualify for this complete homestead exemption . The exemption removes the entire taxable value of the homestead from the tax rolls, meaning the veteran owes no property taxes on that property.

Why this matters: Property taxes in Texas can be substantial. School district taxes alone often exceed 1% of a home’s value annually. For a $300,000 home, this can mean more than $6,000 in annual savings. For a $500,000 home, savings exceed $10,000 per year.

What to do next: Veterans who qualify should apply with their county appraisal district as soon as possible after establishing Texas residency and homestead status.

Eligibility Criteria

Who Qualifies for the 100% Exemption

To qualify for the total property tax exemption, a veteran must meet all of these conditions:

• Texas residency: The veteran must reside in Texas at the time of application

• Homestead ownership: The property must be the veteran’s primary residence (residence homestead)

• VA disability rating: The veteran must have a 100% service-connected disability rating from the U.S. Department of Veterans Affairs

• Property ownership: The veteran must own the property as of January 1 of the tax year

Important: Only Residence Homestead Qualifies for Total Exemption

A key distinction exists between the partial disabled veteran exemption and the 100% total exemption:

• Partial exemption: Can be applied to any one property a veteran owns (rental property, second home, etc.)

• 100% total exemption: Only applies to the veteran’s residence homestead 

Surviving Spouse Eligibility

Surviving spouses of veterans who qualified for the 100% exemption at the time of death may continue the exemption. Surviving spouses of service members killed or fatally injured in the line of duty also qualify . The exemption remains in effect as long as the surviving spouse:

• Continues to own and occupy the property as a homestead

• Does not remarry

Surviving Children

In some cases, surviving children of deceased disabled veterans may also qualify for continued exemption benefits under certain conditions .

2026 Law Changes: What’s New

Texas has enacted significant new benefits for 100% disabled veterans taking effect in 2026. These changes expand the exemption’s scope and create entirely new tax benefits.

Expanded Homestead Definition (Effective January 1, 2026)

A new law amending Texas Tax Code Section 11.131 broadens the definition of “residence homestead” for 100% disabled veterans . The expanded definition now includes:

• Personal property located at the homestead address that is essential for the individual’s use of the property as a primary residence

• All structures and improvements at the property address, provided they share identical ownership and are primarily used for residential purposes

This change ensures that all components of a veteran’s homestead qualify for the tax exemption, eliminating ambiguity about what is covered.

New Sales Tax Exemption for Totally Disabled Veterans (HB 235)

House Bill 235, passed by the 89th Texas Legislature, creates a new sales and use tax exemption for 100% disabled veterans effective January 1, 2026 .

Key provisions of HB 235:

This is the first sales tax exemption of its kind for disabled veterans in Texas. It allows qualifying veterans to save up to $1,625 annually (based on Texas state sales tax of 6.25%) on everyday purchases, plus additional local sales tax savings .

What this means: Starting in 2026, 100% disabled Texas veterans can purchase up to $25,000 in taxable items each year without paying sales tax. This includes purchases made by an authorized person acting on the veteran’s behalf.

Proposed Constitutional Amendment for Partially Disabled Veterans

Additional legislation has been introduced to propose a constitutional amendment that would allow the legislature to provide an exemption from ad valorem taxation for partially disabled veterans based on their disability rating . If passed, this would expand tax relief to a broader range of veterans.

How to Apply for the 100% Property Tax Exemption

Step 1: Verify Your VA Disability Rating

Before applying, confirm your official VA disability rating documentation shows a 100% service-connected rating. The VA will provide a current benefits letter verifying your rating. The letter must be dated within the last two years .

What you need:

• VA benefits letter (dated within the last two years)

• The letter must show your total combined service-connected disability rating

Step 2: Establish Homestead Status

The property must be your primary residence. You will need:

• Texas Driver’s License or Texas Identification Card showing the property address

• Proof of ownership (deed or property tax statement showing you as owner)

Step 3: Complete Form 50-135

The application form for the disabled veteran exemption is Form 50-135 (Application for Disabled Veteran Partial Exemption) . Complete the form with accurate information about your property and disability rating.

Where to get the form:

• Download from your county appraisal district website

• Request by mail from your county appraisal district

• Pick up in person at your county appraisal district office

Step 4: Submit Your Application

Submit the completed form and all required supporting documentation to your county appraisal district.

Submission methods:

• Online (if available through your county appraisal district’s portal)

• By mail

• By fax

• In person

Required supporting documents:

• Current VA benefits letter (dated within the last two years)

• Texas Driver’s License or Texas ID

• Property deed or other proof of ownership

• (For surviving spouses) Marriage certificate and veteran’s death certificate

Important deadline: To receive the exemption for a tax year, you generally must apply by April 30 of that year. However, you can apply later and the exemption may be granted retroactively to the date you qualified .

Step 5: Await Processing

Processing times vary by county but typically range from 30 to 90 days. Your county appraisal district will review your application and notify you of approval or request additional information.

Step 6: Verify Exemption on Property Tax Statement

Once approved, your property tax statement should show the 100% exemption. The taxable value will be reduced to $0. Check your statement carefully each year to ensure the exemption remains applied.

For Veterans with Ratings Below 100%

While the 100% total exemption is the most generous benefit, veterans with lower disability ratings still receive valuable property tax relief.

Partial Disabled Veteran Exemption Table

This partial exemption can be applied to any one property owned by the veteran, not just the homestead .

Combining Exemptions

Veterans with ratings below 100% may combine the disabled veteran exemption with other available exemptions, including:

• General homestead exemption

• Disabled person’s exemption

• Over-65 exemption (cannot combine over-65 and disabled person’s exemptions) 

Combining these exemptions can sometimes eliminate school taxes entirely even for veterans with partial disability ratings .

Property Tax Deferral Option

Texas law allows disabled veterans to defer property taxes through a deferral affidavit . While the 100% exemption provides complete relief, this deferral option remains available for other situations.

How deferral works:

• You postpone paying current and delinquent property taxes on your home

• Taxes are deferred, not canceled

• Interest continues to accrue at 5% per year

• The deferral remains active as long as you continue to own and live in the home

• You can obtain a deferral affidavit from your appraisal district

Common Questions

Is the 100% property tax exemption automatically applied?

No. You must actively apply for the exemption with your county appraisal district. The VA does not automatically notify the county of your disability rating. You must submit your application and VA benefits letter to receive the exemption .

Can I use the 100% exemption on a rental property or second home?

No. The 100% total exemption applies only to your residence homestead. The partial exemption (for ratings 10%-100%) can apply to any one property, but the full 100% reduction is reserved for your primary residence .

What if the property is owned jointly with my spouse?

You can still claim the exemption on your jointly owned homestead. The property must be your primary residence, and you must be the qualifying veteran.

Does the 100% exemption expire?

No. Once granted, the exemption remains in effect as long as you continue to own and occupy the property as your homestead. If your disability rating later changes, you should notify the appraisal district .

What about surviving spouses?

Surviving spouses of veterans who qualified for the 100% exemption may continue to receive the exemption. Additionally, surviving spouses of service members killed in the line of duty qualify for the exemption regardless of the veteran’s disability rating .

What’s the deadline to apply?

The general deadline is April 30 of the tax year. However, you may qualify for a late application if you became eligible after that date. Many counties also accept applications year-round .

How do I apply for the new sales tax exemption?

The Texas Comptroller is required to make an exemption certificate form available by December 31, 2025. Starting January 1, 2026, qualified veterans or their authorized purchasers can complete and present this form at the time of purchase to avoid sales tax on eligible items .

Does the sales tax exemption have a limit?

Yes. The sales tax exemption applies to the first $25,000 of taxable items purchased in a calendar year. Once you reach that amount, you will pay sales tax on additional purchases for the remainder of the year .

Can I apply for both the property tax and sales tax exemptions?

Yes. These are separate benefits available to 100% disabled veterans. The property tax exemption applies to your homestead. The sales tax exemption applies to taxable items you purchase .

What if I have Individual Unemployability (IU) instead of a 100% schedular rating?

Yes. Veterans receiving Individual Unemployability (IU) compensation qualify for the 100% exemption in the same way as those with a 100% schedular rating .

Will the exemption transfer if I move?

The 100% exemption is tied to your current homestead. If you move to a new home in Texas, you must reapply for the exemption for the new property. The sales tax exemption is not tied to a specific property.

Key Takeaways

• 100% disabled veterans in Texas pay no property tax on their residence homestead, eliminating all school district, county, and city property taxes.

• Apply with your county appraisal district using Form 50-135 and submit your current VA benefits letter proving your 100% rating.

• 2026 brings two major new benefits: expanded homestead definition covering personal property and structures, plus a new $25,000 annual sales tax exemption.

• The sales tax exemption starts January 1, 2026, allowing qualified veterans to buy up to $25,000 in taxable items per year without paying sales tax.

• The exemption is permanent once approved—no annual renewal required, but you must continue to own and occupy the homestead.

• Surviving spouses can continue the 100% exemption on the homestead after the veteran’s death, provided they remain in the home and do not remarry.

• Veterans with lower ratings still qualify for partial exemptions ranging from $5,000 to $12,000 off assessed value.

• Application deadline is generally April 30 for the current tax year, but late applications are possible.

• The exemption applies only to the residence homestead—rental properties and second homes do not qualify for the 100% reduction.

• Do not delay applying—the exemption is not retroactive beyond the eligibility date unless you file within the required timeframe.

Official Resources

• Texas Comptroller of Public Accounts: www.comptroller.texas.gov — Property tax information and exemption guidance

• Texas Legislature Online: capitol.texas.gov — Full text of HB 235 and other legislation

• Your County Appraisal District: Find your county appraisal district at www.comptroller.texas.gov/taxes/property-tax/cad

• U.S. Department of Veterans Affairs: www.va.gov — Obtain your VA benefits letter and disability rating documentation

• Texas Veterans Commission: www.tvc.texas.gov — State resources and assistance for Texas veterans

Related Posts

Understanding Virginia’s Military Retirement Pay Tax Subtraction: What You Need to Know

Read more

Maximize Your Military Benefits: The Free Tax Filing with TurboTax for Active Duty and Reserve Members

Read more

See also

VA Disability Rating Increase Colorado Springs | 2026 Guide

How Veterans Can Check Their IRS Tax Refund Status

Read more

Tracking Your Federal Tax Refund: A Comprehensive Guide to the IRS ‘Where’s My Refund?’ Tool

Read more