As of January 1, 2022, veterans who receive 100% disability compensation are eligible for a new homestead tax exemption.
What is a homestead exemption?
Homestead exemptions remove part of your home’s value from taxation, so they lower your taxes.
For example, your home is appraised at $100,000, and you qualify for a $25,000 exemption (this is the amount mandated for school districts). You will pay school taxes on the home as if it was worth only $75,000.
What is a residence homestead?
A “residence homestead” is a “structure or separately secured and occupied portion of a structure” owned by 1+ individuals, designed and used as a human residence, and occupied by the owner or owner’s spouse.
What are the qualifications for the exemption?
You qualify for the homestead tax exemption if the following apply to you:
- You own a home and occupy it as your residence homestead
- You have a disability rating of 100% OR of individual unemployability
- You are receiving 100% disability compensation
Do I need to apply if I already have a homestead exemption?
YES. The 100% disabled veteran homestead exemption is not automatically applied and is separate from a regular exemption.
Do I qualify if I’m not 100% disabled?
YES. The disability exemption amount changes depending on the disability rating:
10 – 29%: $5,000 from the property value
30 – 49%: $7,500 from the property value
50 – 69%: %10,000 from the property value
70 – 100%: $12,000 from the property value
Based on your disability rating, you will be asked to fill out different forms. All forms are categorized and can be found on the Texas Veterans website. Your county will determine which exemptions may be combined, so contact your appraisal district to verify.
What if I am a disabled veteran over 65?
If your disability rating is between 10-90%, you may apply for three exemptions. Qualifications and forms can be found on the TXVET website.
I qualify for residence homestead exemption. How do I apply?
You must submit the necessary documentation and forms to your appraisal district in a timely manner. Documentation will include a VA disability letter indicating your disability percentage, and a copy of your identification with an address that matches your residence homestead.
For more information, check out TEXVET’s FAQ section on their website.
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