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Texas Veteran Benefits

Q: Does Texas tax military retirement pay?

No. Texas has no state income tax, so military retirement pay, VA disability compensation, and all other income are completely tax-free at the state level. This makes Texas one of the most tax-friendly states for veterans.

Complete guide to state benefits for Texas veterans in 2026

Texas Veteran Tax Advantage

Texas has no state income tax. Military retirement pay, VA disability compensation, and all other income are completely tax-free at the state level. Combined with property tax exemptions, Texas is one of the most tax-friendly states for veterans.

Texas Veteran Benefits Summary: Texas offers no state income tax (all military retirement and VA disability are tax-free), property tax exemptions up to 100% for disabled veterans, the Hazlewood Act providing 150 hours of free tuition at state colleges, veteran hiring preferences, and home loans through the Texas Veterans Land Board. Texas has over 1.5 million veterans — the second-largest veteran population in the U.S.

State Income Tax

None. Texas does not have a state income tax.

Military retirement: Not taxed
VA disability: Not taxed (federal law)
All other income: Not taxed

Property Tax Exemptions

Texas offers significant property tax exemptions for disabled veterans on their primary residence:

100% disabled: Full exemption
70-99%: $12,000 exemption
50-69%: $10,000 exemption
30-49%: $7,500 exemption
10-29%: $5,000 exemption

Surviving spouses may also qualify.

Hazlewood Act (Education)

Free tuition at Texas public colleges and universities:

Up to 150 credit hours of tuition exemption
Covers tuition and most fees
Can be used with federal GI Bill
Transferable to children (Legacy Act)

Must be Texas resident and have served 181+ days.

Texas Veterans Land Board

Low-interest loans for Texas veterans:

Home loans: Competitive rates
Land loans: 5+ acre tracts
Home improvement loans: Up to $50,000

Must be Texas resident veteran.

Veteran Hiring Preferences

State employment advantages:

Veterans receive hiring preference for state jobs
Points added to qualifying exam scores
Disabled veterans receive additional preference

Vehicle Registration

Special plates and exemptions:

Free specialty veteran license plates
100% disabled veterans: Free registration
POW/Medal of Honor: Free registration

2026 BAH Rates for Texas Military Installations

Basic Allowance for Housing rates for major Texas duty stations (E-5 with dependents):

Installation	Location	E-5 w/Dep	E-5 Single
Fort Cavazos	Killeen	$1,695	$1,371
Fort Bliss	El Paso	$1,809	$1,416
JBSA	San Antonio	$1,869	$1,500
Austin	Austin	$2,325	$1,863
Fort Worth	Fort Worth	$2,349	$1,836
Houston	Houston	$2,355	$1,872
Dallas	Dallas	$2,520	$1,998
NAS Corpus Christi	Corpus Christi	$1,698	$1,356

View all Texas BAH rates

Texas VA Regional Offices

Waco VA Regional Office

Address: 1 Veterans Plaza, 701 Clay Avenue, Waco, TX 76799

Phone: 1-800-827-1000

Primary regional office for Texas disability claims and benefits.

Houston VA Regional Office

Address: 6900 Almeda Road, Houston, TX 77030

Phone: 1-800-827-1000

Handles pension claims and fiduciary services.

Frequently Asked Questions

Does Texas tax military retirement pay?

No. Texas has no state income tax, so military retirement pay is completely tax-free at the state level. This applies to all retirement pay regardless of amount or type (regular, medical, or reserve).

VA disability compensation is also tax-free under federal law and is not taxed by Texas.

What property tax exemptions do Texas veterans get?

Texas offers significant property tax exemptions for disabled veterans on their primary residence:

100% disabled: Full property tax exemption
70-99% disabled: $12,000 exemption
50-69% disabled: $10,000 exemption
30-49% disabled: $7,500 exemption
10-29% disabled: $5,000 exemption

Surviving spouses of veterans who died of service-connected causes may also qualify.

What is the Hazlewood Act?

The Hazlewood Act provides up to 150 credit hours of tuition exemption at Texas public colleges and universities for eligible Texas veterans.

Key features:

Covers tuition and most mandatory fees
Can be used at any public university or community college
Can be combined with federal GI Bill benefits
Unused hours can be transferred to children (Hazlewood Legacy Act)

To qualify, you must be a Texas resident who served at least 181 days of active duty and received an honorable discharge.

What are the BAH rates for Texas military bases?

2026 BAH rates for E-5 with dependents at major Texas bases:

Fort Cavazos (Killeen): $1,695/month
Fort Bliss (El Paso): $1,809/month
JBSA (San Antonio): $1,869/month
Fort Worth: $2,349/month
Houston: $2,355/month
Dallas: $2,520/month
Austin: $2,325/month

Rates vary by pay grade and dependency status. View all Texas BAH rates.

Sources

Last verified: February 2026