100% Disabled Veteran Property Tax Exemption in Texas

Of all the property tax exemptions available in Texas, the 100% disabled veteran exemption is the most powerful. For veterans who qualify, it doesn't just reduce property taxes on their homestead. It can eliminate them entirely.

What the Exemption Does

A veteran with a 100% disability rating (or who is rated as individually unemployable) from the U.S. Department of Veterans Affairs due to a service connected disability is entitled to a full exemption from property taxes on the total appraised value of their residence homestead. This is separate from, and more complete than, the standard homestead exemption. It removes the entire home's value from taxation, not just a portion of it.

This exemption is also separate from the over 65 exemption. A veteran who qualifies for both the 100% disabled veteran exemption and the over 65 exemption can generally claim both, since the disabled veteran exemption operates under its own section of the tax code.

Who Qualifies

• You must have a service connected disability rating of 100%, or be classified by the VA as individually unemployable due to a service connected disability.
• The property must be your residence homestead.
• The exemption applies to the home and up to the acreage the homestead sits on. It does not extend to unrelated investment properties.

Partial Disability Ratings

Veterans with a disability rating below 100% don't receive the full exemption, but Texas does offer a separate, tiered partial exemption based on disability percentage, available even without a homestead requirement in some cases. If you're a disabled veteran below 100%, it's worth checking with your CAD about this separate partial exemption category, since it works differently from the 100% exemption described here.

Surviving Spouse Benefits

If a veteran who qualified for the 100% disabled veteran exemption passes away, their surviving spouse can generally continue receiving the exemption on the same homestead, as long as:

• The spouse has not remarried
• The property remains their residence homestead

In some cases, if the surviving spouse moves to a new homestead, a portion of the exemption may carry over to the new property. This is worth confirming directly with your CAD, since the specifics can be nuanced.

How to File

1. 1Get the appropriate exemption application from your county appraisal district. This is typically Form 50-114 with the disabled veteran supplemental section, or a dedicated form depending on your CAD.
2. 2Provide your VA disability rating documentation showing the 100% rating or individual unemployability determination.
3. 3There is no fee to file. As with all homestead related exemptions, this is free to apply for directly with your CAD.
4. 4File as soon as you're eligible. Many CADs allow the exemption to apply retroactively to the date of eligibility within the tax year, but you generally need to file to receive that retroactive benefit.

A Few Things Worth Knowing

• Because this exemption removes the full homestead value from taxation, some veterans stop tracking their appraised value closely once it's in place. It's still worth periodically confirming the exemption is showing correctly on your account. Clerical errors happen, and catching one early is easier than fixing it after the fact.
• If you own property beyond your homestead (a second home, rental property, or land), those are not covered by this exemption and remain fully taxable.
• This exemption can also apply to a donated homestead provided by a charitable organization for a disabled veteran, under a related provision. This is a less common scenario but worth knowing if it applies to your situation.