Texas Disabled Veteran Property Tax Exemption: Steps To Claim Your Benefit

Key Takeaways:

• Eligibility: Veterans with service-connected disabilities may qualify for partial or full property tax exemptions on their primary residence.
• Documentation: Accurate VA rating letters, proof of ownership, and military records are essential for a successful application.
• Combined Benefits: Veterans can combine this exemption with homestead or senior exemptions to maximize total property tax savings.

Owning a home is a major accomplishment, especially for those who have served in the military. For many veterans in Texas, the cost of property taxes can make homeownership challenging, even after years of service. The state offers a disabled veteran property tax exemption that helps lower or completely remove property taxes based on disability ratings. Understanding how this program works allows veterans and their families to protect their homes and keep more of their income for what truly matters.

At Icon Property Tax, we take pride in helping Texans fight for fair property tax assessments. With over 30 years of combined experience, our local team has helped homeowners achieve more than $100 million in savings. We operate with a simple approach: you only pay when you save. Backed by trusted local agents and a 25% performance-based fee, Icon continues to be a reliable partner for homeowners across Texas who want a smarter way to manage their property taxes.

Service-Connected Disability Ratings And Tax Savings

Understanding how Texas supports disabled veterans through property tax exemptions begins with recognizing the role of VA disability ratings. These ratings determine how much relief a veteran receives, helping many families protect their homes and finances. Here’s how each factor shapes your exemption eligibility and long-term savings:

How Disability Ratings Impact Property Tax Relief

The U.S. Department of Veterans Affairs assigns disability ratings in increments of 10%, ranging from 10% to 100%. In Texas, these ratings directly determine the exemption amount applied to your home’s appraised value. For instance, a 10% to 29% rating offers a $5,000 exemption, while a 70% to 99% rating can provide up to $12,000. Veterans with a full 100% rating often qualify for a complete exemption from property taxes, significantly reducing financial pressure for those who gave so much in service.

Why Updated Documentation Matters

Submitting your updated VA disability documents whenever your rating changes is essential for maintaining accurate property tax relief. If your rating increases, your exemption amount should reflect the new percentage the following tax year. Keeping your records current prevents delays and helps you claim the full benefits you’ve earned.

The Role Of Icon Property Tax

Navigating exemption paperwork can feel overwhelming, especially when every county has different requirements. This is where Icon Property Tax steps in to advocate for you, making sure you don’t pay more than necessary. With trusted local agents and over 30 years of combined experience, Icon reviews exemption applications and helps you understand how your rating affects your property tax bill. You can also look up your property to see personalized insights and better understand how your VA benefits apply to your home.

Surviving Spouse Benefits And Rules

When a veteran passes away, Texas continues to support their surviving spouse through property tax exemptions that honor both the veteran’s service and the family’s sacrifice. These benefits provide financial relief and stability, but to qualify, surviving spouses must meet a few important requirements:

Marriage Status And Eligibility

To be eligible, the surviving spouse must have been married to the veteran at the time of their death. This condition ensures that the benefit directly extends to those who shared in the veteran’s household and service-related sacrifices. Once approved, the spouse receives the same exemption level the veteran qualified for, continuing the savings that help protect their home. 

Residence Requirement

The home must remain the surviving spouse’s principal residence to maintain the exemption. Texas defines a principal residence as the home where the spouse lives most of the year and officially claims as their homestead. Relocating or changing your primary residence may cause the exemption to lapse, which is why Icon Property Tax helps homeowners stay informed about county appraisal requirements and exemption status updates. 

Remarriage And Duration Of Benefits

Eligibility for the surviving spouse exemption continues as long as the individual does not remarry. Once remarried, the benefit usually ends, and the property’s taxable value returns to standard levels. This exemption offers long-term peace of mind to families who have already sacrificed deeply, and with Icon Property Tax, you can verify your exemption details and get assistance reviewing your paperwork before filing through their online property lookup feature.

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

Applying for a disabled veteran property tax exemption in Texas involves submitting two key forms: 50-114 and 50-135. Each plays a distinct role in confirming your eligibility and linking your VA disability status to your home’s appraisal records. Understanding how to complete these forms accurately can make the process smoother and help prevent delays:

Form 50-114: Application For Residence Homestead Exemption

Form 50-114 establishes that the property in question is your primary residence, a foundational step for all property tax exemptions. You’ll need to include details such as the property address, ownership proof, and a Texas-issued ID that matches the property’s location. Double-check that all names and addresses are consistent with your legal documents before submission, as small discrepancies can slow approval.

Form 50-135: Disabled Veteran Or Survivor Exemption Application

Form 50-135 focuses on verifying your VA disability rating or, in the case of a surviving spouse, your relationship to the veteran. Applicants must attach their VA award letter that clearly states their current disability percentage, along with proof of property ownership and identification. Accuracy matters here, as incorrect or missing documents can delay or reduce your exemption benefit. To help avoid errors, Icon Property Tax offers assistance by reviewing these applications and identifying gaps before they’re sent to the county.

Important Deadlines For Filing Applications

Timing plays a crucial role when applying for the disabled veteran property tax exemption in Texas. Missing a filing deadline can delay your benefits or even disqualify your exemption for the year. Staying aware of submission windows and maintaining organized documentation ensures your application is reviewed promptly and applied to the correct tax year:

The Standard Filing Deadline

The official deadline to file your application for a disabled veteran property tax exemption is April 30 of the tax year in which you’re claiming the benefit. This means that all required documents, including Form 50-114 and Form 50-135, must be received by your local county appraisal district on or before this date. Filing early helps prevent last-minute issues, especially if additional documents are requested for verification.

Late Applications And Exceptions

If you miss the April 30 deadline, Texas law still allows late applications for up to two years after the delinquency date. However, you may need to include supporting documentation explaining the reason for the delay, and approval is not guaranteed. Submitting a complete and accurate packet increases your chances of a successful exemption, even when applying late.

Staying Organized With Icon Property Tax

Deadlines can vary slightly by county, so it’s wise to double-check local appraisal district guidelines. Icon Property Tax helps homeowners stay on track by reviewing exemption applications and offering insights into property assessment schedules. Before submitting, you can look up your property to confirm your records and avoid missing key cutoff dates.

Gathering Military And Medical Documentation

Proper documentation is the foundation of a successful disabled veteran property tax exemption application. Collecting accurate and complete records helps verify your service-connected status and ensures your county appraisal district can process your claim without unnecessary delays. Here are the key documents to prepare before filing:

Proof Of Service

Start by gathering your DD214 or other official discharge papers. This record confirms your service dates, branch, and discharge status, which the county uses to verify your eligibility. Make sure the copy is clear and legible, as blurred or incomplete pages may lead to additional verification requests. Icon Property Tax can assist by reviewing your packet and pointing out missing or unclear details before you submit your application.

VA Disability Award Letter

Include your VA disability award letter showing your current service-connected disability percentage. This document directly determines the level of exemption you qualify for. If your rating has recently changed, request an updated version from the VA before filing. Submitting the most recent letter prevents discrepancies that could delay your exemption approval.

Supporting Medical Notes

If your home includes accessibility modifications related to your disability, such as ramps or widened doorways, attach a short medical statement that explains the need for these changes. Keeping the explanation brief and specific to your condition makes the review process smoother. Organizing these documents in a clear, labeled packet helps your county appraisal office process your file efficiently. You can search your property through Icon Property Tax to review your assessment details and confirm everything aligns before sending your application.

Combining Disabled Veteran And Other Homestead Exemptions

Disabled veterans in Texas can often combine their property tax exemptions to maximize potential savings. Each exemption type applies differently, but when used together, they can significantly reduce the taxable value of a home. Understanding how these exemptions interact is important for making the most of the benefits available to you.

Standard Homestead Exemption

The standard homestead exemption is available to all Texas homeowners who occupy their property as their primary residence. It reduces the taxable value used to calculate school district taxes, which can translate into substantial yearly savings. For example, a home valued at $250,000 may see a $40,000 reduction in taxable value, lowering the amount owed in property taxes.

Disabled Veteran Exemption

This exemption is specifically designed for veterans with service-connected disabilities, offering additional relief based on their VA disability rating. The exemption amount increases with higher disability percentages, ranging from a few thousand dollars to a full exemption for veterans rated at 100%. When paired with the homestead exemption, the total tax reduction can make a meaningful difference in annual costs.

Senior Or Surviving Spouse Exemptions

Homeowners over 65 and surviving spouses of disabled veterans may also qualify for additional exemptions. These benefits can be combined with the homestead and disabled veteran exemptions to further lower property taxes. Together, these programs provide layered protection for individuals and families who have dedicated their lives to service or are facing financial challenges in later years.

Final Thoughts

For many disabled veterans and their families, Texas property tax exemptions provide more than just financial relief; they offer recognition of service and stability in homeownership. While the process involves multiple forms and detailed documentation, understanding how exemptions work can make a meaningful difference in long-term financial planning. Staying organized, submitting accurate records, and keeping up with county deadlines help ensure your exemption remains active and reflects your current eligibility.

Even though the application process can seem complex, the potential savings make it worth the effort. Taking time to review your property’s valuation, confirm your VA documentation, and combine applicable exemptions can substantially reduce your yearly property tax burden. Icon Property Tax continues to help veterans and homeowners navigate the process by reviewing applications before submission and providing valuable insights about their property’s assessment. To learn how your home’s current valuation compares and identify areas for savings, look up your property through Icon’s online tool and take the first step toward fair property taxes.

Read Also:

• Dallas Raises Property Tax Exemptions for Seniors and Disabled Residents to $175K
• Texas Property Tax Exemptions That Can Save You Money
• Understanding The Savings From Texas Homestead Exemptions

Frequently Asked Questions About Texas Disabled Veteran Property Tax Exemption

What is the main purpose of the Texas Disabled Veteran Property Tax Exemption?

The primary goal of this exemption is to reduce or eliminate property taxes for veterans with service-connected disabilities, offering financial relief and stability for qualifying homeowners.

Can veterans apply for the exemption if they own multiple properties?

No, the exemption applies only to a veteran’s principal residence. Secondary or investment properties do not qualify under Texas property tax law.

Do veterans have to reapply for the exemption every year?

Once approved, the exemption usually carries over each year unless there’s a change in ownership, residence, or eligibility status, such as an updated disability rating.

Can veterans who rent their homes qualify for this exemption?

No, the exemption only applies to property owners. Veterans who rent do not receive property tax relief under this specific program, though they may qualify for other benefits.

What happens if a veteran’s disability rating increases after filing?

If the VA updates a veteran’s disability percentage, they can submit the new documentation to their county appraisal district to adjust their exemption level for the following tax year.

Can the exemption be transferred to another property within Texas?

Yes, the exemption can be transferred to a new principal residence within the state. The veteran must notify the new county appraisal district and provide updated ownership records.

Does a veteran’s exemption affect local school taxes?

Yes, depending on the exemption level, it can reduce or completely remove the school tax portion of the property tax bill, resulting in substantial savings.

Can this exemption be used along with mortgage-related tax benefits?

Yes, but property taxes are typically paid through escrow with your mortgage. Veterans can still benefit by lowering the tax amount owed, which may reduce monthly mortgage payments.

Are property taxes included in a veteran’s mortgage payment?

In most cases, yes. Lenders collect property taxes through escrow and pay them directly to the county, so an exemption reduces that total amount.

What if a veteran’s application is denied by the county?

If denied, veterans can appeal the decision by contacting their county appraisal review board. Providing complete and accurate documentation often helps resolve the issue quickly.