How to claim a state property tax exemption as a disabled veteran — what varies by state, the paperwork, and how the Texas exemption works (Tax Code 11.131 and 11.22)
Most states reduce or eliminate property tax on a disabled veteran's home, but each state writes its own rule: some exempt the whole homestead at a 100% rating or individual unemployability, some require a permanent-and-total finding, some subtract a fixed dollar amount by rating, some add an income or home-value test, and most extend something to an unremarried surviving spouse. The state sets the rule; the county appraisal district or assessor takes the application. Texas is a clear example: a veteran awarded 100% disability compensation with a 100% rating or individual unemployability pays no property tax on the residence homestead (Tax Code 11.131), a surviving spouse keeps that exemption while unmarried, and any veteran rated 10% or more gets $5,000 to $12,000 off the assessed value of one property (11.22). Applications are due before May 1, and a disabled veteran's late application is accepted up to five years after the delinquency date.
What you'll need
- Your state's application form — in Texas, Form 50-114 (residence homestead exemption, which includes the 100% disabled veteran exemption) and Form 50-135 (disabled veteran's or survivor's exemption)
- Your current VA rating letter or benefit summary letter showing the percentage and, where the state requires it, permanent and total status or individual unemployability
- Proof the property is your residence (driver's license or ID with the address, in Texas required to match)
- For a surviving spouse: the death certificate and marriage certificate; in some states the veteran's VA letter at death
- The county appraisal district or assessor's contact information
Step-by-step
Step 1: Learn your state's rule before you apply
Find the exemption on your state revenue department's or state veterans agency's site and note five things: the rating threshold (10%, 50%, 70%, 100%, or a permanent-and-total or unemployability finding); whether the relief is a total exemption, a dollar reduction in value, or a credit; any income, age or home-value limit; whether it applies only to the homestead; and what a surviving spouse keeps. Rules change with each legislative session, and local assessors cannot grant more than the statute allows. A county veterans service officer will know the current rule and the local office that handles it.
Step 2: The Texas rules as a worked example
Tax Code 11.131: a disabled veteran awarded 100 percent disability compensation by VA with a rating of 100 percent or of individual unemployability is exempt from taxation on the total appraised value of the residence homestead; the surviving spouse keeps the full exemption on the same home while unmarried, and may carry the dollar amount to a new homestead. Tax Code 11.22: a disabled veteran is exempt on part of the assessed value of one property the veteran designates — $5,000 at 10–29%, $7,500 at 30–49%, $10,000 at 50–69%, $12,000 at 70% or more, and $12,000 for a veteran 65 or older with any rating of 10% or more, totally blind in one or both eyes, or who has lost the use of a limb; the unremarried surviving spouse keeps the veteran's amount, and the spouse of a service member who dies on active duty gets $5,000. Tax Code 11.133: the surviving spouse of a service member killed or fatally injured in the line of duty is exempt on the total value of the residence homestead while unmarried.
Reference: https://statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm#11.131
Step 3: File with the local office, with the VA letter attached
Property tax exemptions are filed with the county appraisal district (Texas) or the county or town assessor (most other states), not with the state or with VA. In Texas, use Form 50-114 for the residence homestead exemptions including the 100% disabled veteran exemption, and Form 50-135 for the partial disabled veteran or survivor exemption; attach the VA letter showing the rating (and unemployability, if that is the basis) and your Texas driver's license or ID with the property address. Applications are due before May 1 of the tax year; a veteran who acquires a home after January 1 applies within a year of the purchase.
Reference: https://comptroller.texas.gov/taxes/property-tax/exemptions/
Step 4: If you missed the deadline
Texas accepts a disabled veteran's late application for the 11.131 total exemption or the 11.22 partial exemption up to five years after the delinquency date for that year's taxes, and refunds the tax already paid (Tax Code 11.439); a surviving spouse's late application falls under the general two-year rule for homestead exemptions (11.431). Other states have their own late-filing and refund rules — ask the assessor in writing rather than assuming the year is lost.
Reference: https://statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm#11.439
Step 5: Keep the exemption current
Tell the assessor when your rating changes, when you move (the exemption does not follow you automatically — file at the new home), and when the veteran dies, so the surviving spouse's exemption is set up without a lapse. In Texas the exemption continues without annual refiling unless the chief appraiser asks for a new application; some states require yearly renewal or income recertification. Keep a copy of the approved application and the VA letter it was based on, and watch the annual notice of appraised value to confirm the exemption still appears.
Reference: https://comptroller.texas.gov/taxes/property-tax/exemptions/
Critical tips
- The VA letter the assessor wants is the benefit summary or rating decision that states the percentage and any permanent-and-total or unemployability finding — download it from your VA.gov account.
- Individual unemployability counts as 100% in Texas (11.131 says "100 percent disabled or of individual unemployability"); check whether your state treats TDIU the same way.
- Texas veterans who rent, or whose home is in a spouse's name, can still use the 11.22 exemption on another property they own and designate.
- If the appraisal district denies a valid application, file a protest with the appraisal review board by the deadline on the notice; a county veterans service officer can help: warriorsfund.org/find-cvso.
- The state exemption is separate from the VA home loan funding fee exemption and from federal tax rules; it does not reduce VA benefits.