Texas VA Property Tax Exemption — Complete Guide
The Texas property tax exemption for disabled veterans is one of the most powerful benefits in the country. At 100% VA disability, your homestead property tax bill drops to $0 — which can wipe hundreds of dollars off your monthly VA mortgage payment.
Who qualifies
- Texas-resident veteran with a VA-rated service-connected disability.
- Property is your primary residence (homestead).
- Exemption amount scales with disability rating (see table below).
- Surviving spouses of 100%-rated veterans may also qualify.
Exemption amounts
| VA Disability Rating | Texas Exemption |
|---|---|
| 10–29% | $5,000 of assessed value |
| 30–49% | $7,500 of assessed value |
| 50–69% | $10,000 of assessed value |
| 70–99% | $12,000 of assessed value |
| 100% (or unemployable) | Total exemption — $0 property tax on homestead |
Impact on your monthly payment
On a $400,000 Texas home with a 2.2% tax rate, property taxes run about $8,800/year — roughly $733/month escrowed into your VA mortgage payment. A 100% disability exemption zeroes that line item out, dropping your payment by that amount for as long as you own and occupy the home.
How to file
- Get your VA disability rating letter from VA.gov.
- Complete Texas Comptroller Form 50-135 (Disabled Veteran's Exemption).
- Submit to your county appraisal district with proof of the rating and homestead.
- Deadline is generally April 30, but late filings are often accepted for up to 5 prior years.
How Valor Mortgage Group helps
When we structure your VA pre-approval, we factor the Texas exemption into your DTI and escrow analysis — which can raise how much home you qualify for and lower your monthly payment. If your disability claim is pending, we'll help you get an intent to file on record before closing so that any funding fee paid gets refunded when the rating comes through.
Run a quick affordability estimate or schedule a call — we'll build a payment scenario with your exemption applied.