Updated January 2026
Texas Veteran Benefits 2026
Texas offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in TX for 2026.
Texas Highlights
- No state income tax
- Full property tax exemption for 100% disabled
- Hazelwood Act education benefits
- Free state park access and hunting/fishing for disabled veterans
Income Tax Treatment
Texas has no state income tax. Texas has no state income tax, so military retirement pay is not taxed.
This means military retirement pay, active duty pay, and all other income sources are free from state income tax. VA disability compensation is also tax-free at the federal level.
Property Tax Exemption for Disabled Veterans in Texas
Type: Graduated by disability rating
Texas has multiple distinct disabled-veteran property-tax benefits: (1) a GRADUATED fixed-dollar exemption by VA disability rating band under Tax Code 11.22 ($5,000 / $7,500 / $10,000 / $12,000 of assessed value); (2) a SEPARATE TOTAL (100%) residence-homestead exemption under 11.131 for veterans awarded 100% disability compensation due to a 100% rating OR individual unemployability (TDIU); (3) a DONATED-HOME exemption under 11.132 (percentage of value equal to the disability rating, for charity-donated homes); and (4) a total exemption for surviving spouses of service members killed/fatally injured in the line of duty (11.133/11.134). The 11.22 graduated exemption applies to any one property the veteran owns (not limited to homestead).
| VA disability rating / category | What you get |
|---|---|
| 10% – 29% | $5,000 of assessed property value exempt (Tax Code 11.22)Based on VA or service-branch disability rating. Not limited to homestead. |
| 30% – 49% | $7,500 of assessed property value exempt (Tax Code 11.22)Based on VA disability rating. |
| 50% – 69% | $10,000 of assessed property value exempt (Tax Code 11.22)Based on VA disability rating. |
| 70% – 100% | $12,000 of assessed property value exempt (Tax Code 11.22)Based on VA disability rating. |
| Age 65+ with at least 10% rating, OR totally blind in one/both eyes, OR loss of use of one or more limbs | $12,000 of assessed value exempt (Tax Code 11.22)This is the maximum 11.22 amount available to these specially-qualified veterans regardless of the percentage tier. |
| 100% disabled (100% rating OR individual unemployability/TDIU) with 100% VA disability compensation | TOTAL exemption — 100% of the appraised value of the residence homestead (Tax Code 11.131)Must be awarded 100% disability compensation by the VA due to a 100% disability rating OR a determination of individual unemployability (TDIU). Residence-homestead only. This is SEPARATE from and larger than the 11.22 graduated exemption. |
| Disabled veteran (below 100%) with a charity-donated residence homestead | Percentage of the homestead's appraised value equal to the veteran's disability rating exempted (Tax Code 11.132)Home must be donated (at no cost or at some cost not exceeding 50% of market value) by a charitable organization. Surviving spouse may continue if unremarried. |
| Surviving spouse of a U.S. service member killed or fatally injured in the line of duty | TOTAL exemption of the residence homestead (Tax Code 11.133); 11.134 for first respondersUnmarried since the service member's death. |
- Income limit: None
- Age requirement: None for the standard graduated exemption or the 100% exemption; age 65+ is one path to the $12,000 maximum 11.22 amount for veterans rated at least 10%.
- Surviving spouse: Surviving spouse of a 100%-disabled veteran (11.131) may continue the total homestead exemption if unremarried and the property was the homestead at the veteran's death and remains the homestead. Surviving spouse may also continue the 11.22 graduated exemption ($5,000) and the donated-home 11.132 exemption. Surviving spouses of service members KIA receive a total exemption (11.133).
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: Tex. Tax Code 11.22 (graduated exemption); 11.131 (100% total homestead exemption, incl. TDIU); 11.132 (donated residence homestead); 11.133/11.134 (surviving spouse of fallen service member/first responder) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Texas Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in Texas
Texas has approximately 6 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.