If you have a VA disability rating and you live in Texas, you may be leaving thousands of dollars on the table every year. Texas is one of the most veteran-friendly states in the country — but most veterans only know about the property tax exemption, and miss the education, recreation, and employment benefits that stack on top.
This guide covers every Texas state benefit for disabled veterans in 2026, the exact rating thresholds that unlock each one, and how to claim them.
Your VA Rating and What It Unlocks in Texas
Most Texas veteran benefits are tied directly to your federal VA disability rating. Here’s the full picture in one place:
| VA Disability Rating | Texas State Benefits Unlocked |
|---|---|
| 10–29% | Property tax reduction ($5,000 off assessed value), Hazlewood Act tuition, state employment preference |
| 30–49% | Property tax reduction ($7,500 off assessed value), discounted VLB home improvement loan rate |
| 50–69% | Property tax reduction ($10,000 off assessed value), free hunting and fishing Super Combo license |
| 60%+ | Free Texas driver’s license or ID card |
| 70–99% | Property tax reduction ($12,000 off assessed value) |
| 100% or TDIU | 100% property tax exemption on homestead plus all benefits above |
TDIU (Total Disability based on Individual Unemployability) counts as 100% for most Texas state benefit purposes even if your scheduler rating is lower. The property tax exemption applies to your primary residence only.
Texas Property Tax Exemption for Disabled Veterans (2026)
This is the single largest financial benefit Texas offers disabled veterans. The exemption scales with your VA rating, and for veterans rated 100% or receiving TDIU, it’s a complete exemption — meaning $0 in property taxes on your homestead.
How the Tiers Work
- 10–29%: $5,000 off your home’s assessed value
- 30–49%: $7,500 off assessed value
- 50–69%: $10,000 off assessed value
- 70–99%: $12,000 off assessed value
- 100% or TDIU: Full exemption — completely exempt from property taxes
To put the 100% exemption in context: if you own a home with a combined property tax rate around 2% on a $350,000 assessed value, you’re looking at roughly $7,000 a year in taxes. At 100% disabled, that goes to zero — every year, for as long as you live there and maintain your rating.
How to Claim the Texas Property Tax Exemption
- Download Form 50-135 (Application for Disabled Veteran’s or Survivor’s Exemption) from the Texas Comptroller’s website at comptroller.texas.gov.
- Attach a copy of your VA award letter showing your current disability rating percentage.
- Submit to your county’s Central Appraisal District (CAD) — not the tax assessor’s office. Find your county’s CAD at tvc.texas.gov.
- The deadline is typically April 30 for the current tax year. Late applications may be accepted up to two years back in most counties.
If your rating increases, refile. The exemption doesn’t update automatically. Always check your CAD record after any VA rating change.
The Hazlewood Act: Free College Tuition for Texas Veterans
The Hazlewood Act is one of the most generous state education benefits in the country. It provides up to 150 credit hours of tuition and most fee charges at Texas public colleges, universities, and technical schools — completely free. This is a tuition exemption, not a loan.
Who Qualifies
- Served in the U.S. Armed Forces (including National Guard and Reserve activated under federal orders)
- Texas resident when you entered service, OR established Texas residency at least 12 months before enrollment
- Honorable discharge or released under honorable conditions
- Not in default on any state-funded student loan
- Exhausted or ineligible for federal education benefits (including the Post-9/11 GI Bill)
The Legacy Program
If you don’t use all 150 hours — or don’t plan to use them — you can transfer remaining hours to one dependent child under 25. This is the Hazlewood Legacy benefit, and the child must be a Texas resident.
How to Apply
Apply through your school’s veterans affairs or financial aid office before or at enrollment. Bring your DD-214, proof of Texas residency, and a completed Hazlewood exemption application. Forms are available from the Texas Higher Education Coordinating Board at highered.texas.gov.
More Texas State Benefits for Disabled Veterans
Free Hunting and Fishing License (50%+ Rating)
Veterans with a service-connected rating of 50% or higher — or who have loss of use of a foot or leg — qualify for a free Super Combo hunting and fishing package from Texas Parks and Wildlife. The Super Combo includes your hunting license, fishing license, and all endorsements (saltwater, freshwater, turkey, archery, muzzleloader). Apply at a TPWD Law Enforcement office or online at tpwd.texas.gov with a copy of your VA award letter.
Free Driver’s License or ID Card (60%+ Rating)
Veterans with a 60% or higher service-connected rating who receive VA compensation qualify for a free Texas driver’s license or state ID. Visit any Texas DPS driver license office with your VA award letter. The “DV” designation will appear on your license, which also serves as veteran proof at businesses that offer veteran discounts.
Home Improvement Loans (30%+ Rating)
The Texas Veterans Land Board (VLB) offers home improvement loans of up to $50,000. Veterans with a service-connected disability rating of 30% or greater qualify for a discounted interest rate. Apply at vlb.texas.gov.
Employment Preference and Support
Texas gives disabled veterans a 10-point preference in state government hiring (30%+ service-connected rating). The Disabled Veterans Outreach Program (DVOP), run through the Texas Workforce Commission, provides free one-on-one employment support — resume writing, job search, interview prep — for veterans with significant employment barriers including disability. Find your nearest DVOP specialist at twc.texas.gov.
How to Claim Texas State Veterans Benefits: Step-by-Step
These benefits don’t activate automatically when your VA rating is assigned — you have to file. Here’s where to start:
- Texas Veterans Commission (TVC): TVC operates offices statewide with VA-accredited claims representatives who help with both federal and state benefits at no cost. Find your nearest office at tvc.texas.gov/locations. This is your first call if you’re unsure what you qualify for.
- Property Tax Exemption: File Form 50-135 with your county Central Appraisal District immediately after your rating is assigned or increased.
- Hazlewood Act: Apply through your school’s veterans affairs office. Bring your DD-214 and proof of Texas residency.
- Hunting/Fishing License: Apply at a TPWD Law Enforcement office or at tpwd.texas.gov with your VA award letter.
- Driver’s License: Visit any Texas DPS driver license office with your VA award letter.
- VLB Home Improvement Loan: Apply at vlb.texas.gov.
TVC claims reps are free, accredited, and on your side. You don’t need to hire a claims company or attorney to access any Texas state benefit.
What If Your Rating Needs to Be Higher?
The property tax benefit jumps significantly at the 70% and 100% thresholds. If your conditions have worsened, or if you have new conditions that aren’t yet service-connected, filing for an increase can move you into a better tier and unlock additional benefits.
The TVC can review your file and help you file for an increase at no cost. If you’ve already filed and been denied, the VA appeals process — supplemental claims and higher-level reviews — is your path forward.
For how all 50 states compare on property tax, income tax, education, and more, see the VA Benefits by State 2026 complete guide.
Frequently Asked Questions About Texas VA Disability Benefits
Do disabled veterans pay property taxes in Texas?
It depends on your VA disability rating. Veterans rated 10–99% receive a partial assessed-value reduction ($5,000 to $12,000 off). Veterans rated 100% disabled or receiving TDIU are completely exempt from property taxes on their primary residence — they pay $0.
What VA disability rating do you need for the Texas property tax exemption?
Any service-connected rating of 10% or higher qualifies for at least a partial exemption. The full 100% exemption requires a 100% combined scheduler rating or TDIU status.
Is VA disability income taxable in Texas?
Texas has no state income tax, so VA disability compensation is not subject to Texas income tax. VA disability is also federally tax-exempt. Your compensation is completely tax-free at both state and federal levels.
How do I apply for the Hazlewood Act in Texas?
Apply through the veterans affairs or financial aid office at the Texas public college you plan to attend. Bring your DD-214, proof of Texas residency, and a completed Hazlewood exemption application from highered.texas.gov.
Can I get a free hunting and fishing license in Texas with VA disability?
Yes — if your service-connected rating is 50% or higher. The benefit covers the full Super Combo package. Apply at a Texas Parks and Wildlife Law Enforcement office or at tpwd.texas.gov.
What benefits does a 100% P&T veteran get in Texas?
A 100% P&T veteran in Texas receives: complete property tax exemption on their homestead, free Super Combo hunting and fishing license, free state driver’s license, Hazlewood Act education benefit (up to 150 credit hours), VLB home improvement loan at discounted rate, and 10-point state employment preference.
Does Texas exempt military retirement pay from income tax?
Texas has no state income tax at all, so all military retirement pay is fully exempt — regardless of disability status or retirement type.