Veterans Property Tax Exemption Texas: 2026 Changes

Veterans Property Tax Exemption Texas 2026

Texas veterans property tax exemptions for 2026 include a new increased disabled veteran exemption ranging from $30,000 to $100,000 based on disability rating, and a 100% homestead exemption for qualifying surviving spouses under Proposition 7. Veterans apply through their county appraisal district using Form 50-135 with a VA disability letter and Texas ID.

Quick Facts

What Is the Texas Veterans Property Tax Exemption?

The Texas veterans property tax exemption reduces the taxable value of a veteran’s homestead, lowering their annual property tax bill. Texas offers two main types of exemptions: a partial exemption for veterans with a 10% to 100% service-connected disability rating, and a full 100% homestead exemption for veterans rated 100% disabled or with individual unemployability.

The exemption applies to the veteran’s primary residence—their homestead. A homestead is generally defined as the home and land used as the owner’s principal residence on January 1 of the tax year. The exemption reduces the appraised value of the home, which in turn lowers the property taxes owed.

Why This Matters: Texas has no state income tax, making property taxes a significant financial burden for homeowners. The disabled veteran exemption can save thousands of dollars annually. For a veteran with a $300,000 home at a 70% rating, the new $100,000 exemption could reduce taxable value by one-third.

What Veterans Should Do Next: Contact your county appraisal district to confirm current exemption amounts and request Form 50-135. The deadline to file for most exemptions is April 30, though some exemptions can be filed later under specific circumstances.

2026 Disabled Veteran Exemption Amounts

The Texas Legislature increased disabled veteran exemption amounts effective January 1, 2026, contingent on voter approval of a constitutional amendment. The new exemption schedule significantly increases benefits compared to prior years.

New 2026 Exemption Schedule

The increased amounts were authorized by Senate Bill 3060, which amended Section 11.22(a) of the Texas Tax Code. The bill took effect January 1, 2026, but only if voters approved the constitutional amendment proposed by the 89th Legislature.

What This Means for Veterans: A veteran with a 70% disability rating who previously received a $12,000 exemption now receives $100,000 off their homestead’s assessed value—an increase of $88,000. At a typical Texas property tax rate of 1.5%, this translates to approximately $1,320 in annual savings.

Age 65 and Disabled Veterans

Veterans who are both age 65 or older AND have a disability rating of 10% or higher receive the $12,000 exemption amount (DV4 category). The higher exemption amounts under the 2026 changes apply based on disability rating alone.

100% Disabled Veteran Homestead Exemption

Veterans rated 100% disabled by the VA, or those with individual unemployability, qualify for a complete exemption from property taxes on their homestead. This exemption covers the total appraised value of the residence homestead under Texas Tax Code Section 11.131.

Who Qualifies for the 100% Exemption

• Veterans with 100% VA disability rating due to a service-connected disability

• Veterans with individual unemployability rated at 100% by the VA

• Surviving spouses of veterans who qualified, or would have qualified, for this exemption at the time of the veteran’s death (with restrictions including not remarrying)

What the 100% Exemption Covers

The exemption applies to the veteran’s residence homestead, which includes:

• The home and land used as the principal residence

• Personal property owned by the individual located at the same address and essential for use as a primary residence

• All structures and improvements at the property address with identical ownership primarily used for residential purposes

Important: Homeowners are not required to reapply annually. Once approved, the exemption remains in effect as long as the homeowner continues to qualify. Recipients must notify the appraisal district of any change in residency or eligibility status.

Proposition 7: New Surviving Spouse Exemption

Texas voters approved Proposition 7 on November 4, 2025, creating a new 100% homestead exemption for surviving spouses of veterans who died from service-connected conditions covered by the PACT Act. This exemption is effective beginning with the 2026 tax year under Texas Property Tax Code Section 11.136.

Who Qualifies Under Proposition 7

The surviving spouse must meet all of the following conditions:

• Be the surviving spouse of a U.S. veteran who was granted service connection for cause of death due to a qualifying condition under the Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act of 2022 (PACT Act), or a regulation adopted under that Act establishing a presumption of service connection

• Not have remarried since the veteran’s death

• The veteran must have died due to a qualifying condition or disease determined to be service-connected under federal law, confirmed by the VA as cause of death

• The property must be the surviving spouse’s principal residence, and they must occupy it as their primary residence

Critical Detail: The veteran did NOT need to have a 100% disability rating at the time of death for the spouse to qualify. The exemption applies as long as the death was determined to be service-connected under PACT Act qualifying conditions.

Required Documentation for Proposition 7

• Valid Texas Driver’s License or Texas ID (address must match property address)

• Marriage Certificate

• Death Certificate of the deceased veteran

• Completed Homestead Application

• VA Letter Confirming DIC (Dependency and Indemnity Compensation) stating the surviving spouse has been awarded DIC benefits and affirming service connection for cause of death was established

Impact of Proposition 7

Early data from Bexar County shows the new exemption had a modest initial impact—73 properties with a total exempted value of approximately $24.8 million as of August 2026. Harris County reported only four applicable accounts. The state estimated around 3,000 surviving spouses could qualify statewide.

Who Qualifies for Texas Veterans Property Tax Exemptions

Texas veterans property tax exemptions are available to veterans with service-connected disabilities, surviving spouses of qualifying veterans, and certain surviving spouses of service members killed in the line of duty.

Basic Eligibility Requirements

For Disabled Veteran Partial Exemption (10%-99%):

• Must have a service-connected disability rating of at least 10% from the VA

• Must own the property on January 1 of the year applying for the exemption

• Must be a Texas resident

• Cannot claim the exemption on more than one property

• Must provide a current VA letter verifying combined service-connected disability rating, dated within the last two years

• Must provide Texas Driver’s License or Texas Identification card

For 100% Disabled Veteran Homestead Exemption:

• Must have a 100% VA disability rating due to service-connected disability OR individual unemployability

• Must own and occupy the property as primary residence

• Same Texas residency and documentation requirements as partial exemption

For Surviving Spouses:

• A surviving spouse can continue the exemption if the spouse was claiming the exemption at the time of passing

• Must provide marriage certificate and veteran’s death certificate

• Must not have remarried (for most exemptions)

National Guard and Reserve Members

National Guard and Reserve members who have a VA service-connected disability rating may qualify for the same exemptions as active-duty veterans. The exemption is based on VA disability rating, not military status at time of application.

How to Apply for Texas Veterans Property Tax Exemption

Apply for Texas veterans property tax exemptions through your county appraisal district using the Residence Homestead Exemption Application (Form 50-135). Most counties accept applications online, by mail, fax, or in person.

Step-by-Step Application Process

Step 1: Gather Required Documentation

• Current VA disability letter (dated within last two years) showing combined service-connected disability rating

• Texas Driver’s License or Texas Identification card with address matching the property

• For surviving spouses: marriage certificate and veteran’s death certificate

• For Proposition 7 surviving spouses: VA letter confirming DIC benefits

Step 2: Obtain Form 50-135
Download the Residence Homestead Exemption Application from your county appraisal district website or request one by mail.

Step 3: Complete the Application
Fill out the form completely, selecting the appropriate exemption type based on your disability rating or surviving spouse status.

Step 4: Submit Your Application
Submit electronically through your appraisal district’s online portal, by mail, fax, or in person. The Texas Driver’s License or TX ID card requirement applies regardless of submission method.

Step 5: Track Your Application
Contact your appraisal district to confirm receipt and processing status. Processing times vary by county.

Online Application Availability

Many Texas county appraisal districts now offer online application submission. For example, Bexar County allows online applications through their website with document upload capability. Check your specific county appraisal district’s website for online options.

Important: There is never a fee to apply for exemptions or for any appraisal district services. Be wary of third-party services charging fees for what you can do yourself for free.

Required Documents Checklist

The documents you need depend on the type of exemption you’re claiming. Missing documents are the most common cause of application delays.

Key Point: The VA letter must be dated within the last two years and must verify your TOTAL COMBINED service-connected disability rating. A letter showing individual condition ratings is not sufficient—VA must provide the combined rating.

Common Mistakes Texas Veterans Make

Avoiding these errors speeds up your exemption approval and prevents denials.

Filing with an expired VA letter. The VA letter must be dated within two years of your application. Request a current letter from VA if yours is older.

Using a non-matching Texas ID address. Your Texas Driver’s License or ID card address must match the property address. Update your ID before applying if you recently moved.

Claiming exemption on multiple properties. The disabled veteran exemption can only be claimed on one property. Claiming on more than one can result in penalties and removal of the exemption.

Waiting until after the deadline. While some exemptions can be filed after April 30 under specific circumstances, filing by the deadline ensures your exemption is processed for the current tax year.

Not notifying the appraisal district of changes. If you move, sell the property, or your eligibility changes, you must notify the appraisal district. Failure to do so can result in back taxes and penalties.

Paying for application assistance. There is never a fee to apply for exemptions directly with the appraisal district. Third-party services charging fees are unnecessary.

Appeals Process for Denied Exemptions

If your exemption application is denied or your existing exemption is cancelled, you have the right to protest the decision to the Appraisal Review Board (ARB). The ARB is an independent body that hears taxpayer protests.

How to Protest a Denial

Step 1: File a Notice of Protest
Submit a written protest to your appraisal district within the deadline stated on your denial notice. The deadline is typically May 15 or 30 days after the notice was delivered, whichever is later.

Step 2: Prepare Your Evidence
Gather documentation supporting your eligibility—VA letters, identification, and any correspondence with the appraisal district.

Step 3: Attend the ARB Hearing
Present your case to the Appraisal Review Board. You can represent yourself or have someone represent you.

Step 4: Consider Arbitration
If you’re dissatisfied with the ARB outcome and the issue involves a procedural requirement, you may request limited binding arbitration.

Important Protections

Texas law provides specific protections against erroneous denial or cancellation of homestead exemptions for disabled veterans. The ARB must address erroneous denial or cancellation of disabled veteran exemptions under Tax Code Section 11.22 or 100% disabled veteran exemptions under Section 11.131.

Local Government Impact and State Reimbursement

Texas provides state assistance payments to local governments that lose significant property tax revenue from the 100% disabled veteran homestead exemption. This helps offset the cost to cities and counties with large veteran populations.

How Local Government Relief Works

A city or county may qualify for a disabled veteran assistance payment under Local Government Code Section 140.011 if they meet certain criteria, including:

• Lost property tax revenue from the 100% disabled veteran exemption equal to or greater than 2% or 10% of the total

• Being located adjacent to a U.S. military installation

• Having certain population thresholds

Application Process for Local Governments

Qualifying local governments must file Form 50-833 with the Comptroller’s Property Tax Assistance Division. Applications must be received between February 1 and April 1 of the year following the fiscal year for which payment is sought. The Comptroller’s office issues payment within 30 days of approving a completed application.

Common Questions

What is the Texas property tax exemption for disabled veterans in 2026?

The 2026 exemption amounts range from $30,000 (10%-29% disability) to $100,000 (70%+ disability). Veterans with a 100% rating or individual unemployability receive a full homestead exemption covering the total appraised value of their primary residence.

Did the disabled veteran exemption amounts increase for 2026?

Yes. Senate Bill 3060 increased exemption amounts effective January 1, 2026, contingent on voter approval of a constitutional amendment. The new amounts are $30,000, $40,000, $50,000, and $100,000 based on disability rating, up from $5,000, $7,500, $10,000, and $12,000.

What is Proposition 7 in Texas?

Proposition 7 was approved by voters in November 2025 and creates a 100% homestead exemption for surviving spouses of veterans who died from service-connected conditions covered by the PACT Act. It takes effect for the 2026 tax year. The veteran did not need a 100% disability rating at death for the spouse to qualify.

How do I apply for a Texas disabled veteran property tax exemption?

Submit Form 50-135 to your county appraisal district along with a current VA disability letter (dated within two years) and Texas Driver’s License or ID. Applications can be submitted online, by mail, fax, or in person. There is no fee to apply.

What documents do I need for the Texas disabled veteran exemption?

You need a current VA letter verifying your combined service-connected disability rating (dated within two years) and a Texas Driver’s License or ID card with an address matching the property. Surviving spouses need marriage and death certificates plus a VA DIC letter for Proposition 7.

Can surviving spouses keep the disabled veteran exemption after the veteran dies?

Yes, in certain circumstances. A surviving spouse can continue the exemption if the spouse was claiming it at the time of passing. Proposition 7 created a new exemption for surviving spouses of veterans who died from PACT Act service-connected conditions, even if the veteran did not have a 100% rating.

Do I have to reapply for the Texas disabled veteran exemption every year?

No. Once approved, the exemption generally remains in effect as long as you continue to qualify. You must notify the appraisal district if you move, sell the property, or your eligibility changes.

What is the deadline to apply for a Texas property tax exemption?

The general deadline is April 30. However, some exemptions can be filed after this date under specific circumstances. Contact your county appraisal district for deadlines specific to your situation.

Can I claim the disabled veteran exemption on more than one property?

No. The disabled veteran property tax exemption can only be claimed on one property—your primary residence. Claiming on multiple properties can result in removal of the exemption and potential penalties.

What is individual unemployability and does it qualify for the 100% exemption?

Individual Unemployability (IU) is a VA determination that a veteran cannot maintain substantially gainful employment due to service-connected disabilities, even if their combined rating is less than 100%. Veterans with IU qualify for the 100% disabled veteran homestead exemption in Texas.

Key Takeaways

• Texas disabled veteran property tax exemptions increased for 2026, with the highest bracket (70%+ rating) now at $100,000 off assessed value.

• Veterans with 100% VA rating or individual unemployability receive a complete homestead exemption under Texas Tax Code Section 11.131.

• Proposition 7 created a new 100% homestead exemption for surviving spouses of veterans who died from PACT Act service-connected conditions, effective 2026.

• The veteran did NOT need a 100% disability rating at death for the surviving spouse to qualify under Proposition 7.

• Apply through your county appraisal district using Form 50-135 with a current VA letter (dated within two years) and matching Texas ID.

• There is never a fee to apply for exemptions directly with the appraisal district.

• Once approved, exemptions generally do not require annual reapplication, but you must notify the district of eligibility changes.

• Denied exemptions can be protested to the Appraisal Review Board.

• Texas provides state assistance payments to local governments disproportionately affected by the 100% disabled veteran exemption.

• National Guard and Reserve members with VA disability ratings qualify for the same exemptions as active-duty veterans.

Official Resources

• Texas Comptroller – Property Tax Exemptions: https://comptroller.texas.gov/taxes/property-tax/exemptions/

• Texas Comptroller – Local Government Relief: https://comptroller.texas.gov/taxes/property-tax/exemptions/local-gov-relief.php

• Texas Legislature – SB 3060 (2026 Exemption Increase): https://capitol.texas.gov/tlodocs/89R/billtext/html/SB03060I.htm

• VA Disability Compensation: https://www.va.gov/disability/

• VA PACT Act Information: https://www.va.gov/resources/the-pact-act-and-your-va-benefits/

• USA.gov – Texas Veterans Benefits: https://www.usa.gov/state-veteran-benefits

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