Texas Veterans Benefits: Property Tax Exemption, Hazlewood Act & State Programs (2025)

Why Texas Is One of the Best States for Veterans

With over 1.7 million veterans calling Texas home — roughly 8.5% of the adult population — the Lone Star State has built one of the most comprehensive state-level benefit ecosystems in the country. Texas consistently ranks among the top five most veteran-friendly states, and for good reason: when you combine the property tax exemptions, education benefits, land board loan programs, and commission services, the total value of Texas state benefits can easily exceed $100,000 over a veteran's lifetime.

These benefits are entirely separate from and stackable with federal VA benefits. A 100% permanently and totally (P&T) disabled veteran living in Texas doesn't just get federal VA compensation — they also get their entire property tax bill eliminated, access to 150 free college credit hours for themselves or their children, below-market home loans, and free lifetime hunting and fishing licenses. This guide walks through every major Texas veteran benefit program for 2025.

Property Tax Exemptions (Texas Tax Code § 11.131)

Texas property tax exemptions for disabled veterans are governed by Texas Tax Code Section 11.131 and represent one of the most valuable state-level financial benefits available anywhere in the country. Unlike many states that cap exemptions at a fixed dollar amount, Texas provides a complete property tax exemption for qualifying veterans — with no ceiling.

100% P&T Disability: Full Property Tax Exemption

If you have a VA disability rating of 100% permanent and total (P&T) — meaning your rating is either 100% schedular with a P&T designation, or 100% via Individual Unemployability (TDIU) with a P&T designation — you qualify for a 100% property tax exemption on your primary residence.

There is no dollar cap. If your home is assessed at $450,000, you pay zero property taxes on it. In Texas, where average effective property tax rates run around 1.60% — one of the highest in the nation — this exemption is worth $7,200 per year on a $450,000 home and scales proportionally higher for more valuable properties. Over 20 years, that's over $144,000 in tax savings (before accounting for property value appreciation).

70–99% Disability: Significant Partial Exemptions

Veterans with VA ratings below 100% P&T also qualify for partial property tax exemptions under Texas Tax Code § 11.22:

Surviving Spouses

The surviving spouse of a veteran who qualified for the 100% P&T exemption under § 11.131 may continue to receive the full exemption as long as they: (1) have not remarried, and (2) continue to occupy the property as their primary residence. This provision ensures that a veteran's family isn't forced out of their home after the veteran's death.

Additionally, the surviving spouse of a veteran who died on active duty also qualifies for the full exemption under § 11.132, regardless of whether the veteran had a disability rating at time of death.

How to Apply for the Texas Property Tax Exemption

1. Obtain your VA disability letter confirming your rating and P&T status (or the appropriate rating percentage).
2. Complete Texas Form 50-135 ↗ (Disabled Veterans Property Tax Exemption Application), available at your county appraisal district's website.
3. Submit the completed form and supporting VA documentation to your county appraisal district office — not the tax assessor-collector, but the appraisal district.
4. The exemption applies for the entire tax year in which you qualify, even if you apply mid-year. The appraisal district will prorate if needed.
5. Once approved, the exemption renews automatically each year unless your status changes.

Pro tip: If your VA rating increases to 100% P&T, file an amended application immediately. You do not need to wait until the new tax year. Source: Texas Comptroller of Public Accounts

The Hazlewood Act: 150 Free Tuition Hours

Named after State Senator T.A. Hazlewood and originally enacted in 1923, the Hazlewood Act provides one of the most generous state education benefits in the country. Eligible Texas veterans receive up to 150 credit hours of free tuition at any Texas public institution of higher education — including universities, community colleges, and technical schools.

Who Qualifies for the Hazlewood Act?

To qualify for Hazlewood Act benefits, a veteran must meet all of the following:

• Served in the U.S. Armed Forces (including National Guard or Reserve activated under federal orders)
• Was a Texas resident at the time of enlistment or induction
• Received an honorable discharge, general discharge under honorable conditions, or a medical discharge
• Is not in default on any student loan made or guaranteed by the state of Texas
• Does not have a bachelor's degree already (for most institutions — some graduate benefit available)
• Meets the school's admission standards

Note: There is no disability rating requirement for the Hazlewood Act. All honorably discharged Texas veterans who meet the residency requirement qualify, regardless of VA disability status.

What the Hazlewood Act Covers — and What It Doesn't

The Hazlewood Act covers tuition and required fees only. It does not cover:

• Room and board / housing costs
• Textbooks and supplies
• Optional fees or parking
• Courses taken above the 150-hour cap

The 150-hour cap is per veteran — not per semester. It's a lifetime bank. If you use 60 hours in one school and transfer to another, you have 90 remaining. Monitor your usage carefully through the Texas Higher Education Coordinating Board (THECB) system, which tracks usage statewide.

Hazlewood Legacy: Transferring Benefits to Dependent Children

One of the Hazlewood Act's most powerful provisions is the Legacy option. Veterans who have exhausted their own hours, or who choose to do so, can transfer remaining hours to a dependent child. The child must:

• Be classified as a dependent on the veteran's most recent federal tax return
• Be 25 years of age or younger (unless the veteran was absent during child's minority due to military service)
• Meet the enrolling institution's academic requirements

The veteran must be living and must formally designate the child for the Legacy benefit through the THECB. Each child gets up to 150 hours (subject to the veteran's remaining balance). Multiple children can share hours if the veteran has not exhausted the full 150.

Stacking Hazlewood with the GI Bill

Here's where the Hazlewood Act becomes extraordinarily valuable: it stacks with the federal Post-9/11 GI Bill. The optimal strategy for eligible veterans is:

• Use the Post-9/11 GI Bill for the monthly housing allowance (MHA) — which can be $1,500–$3,500/month depending on school location
• Use the Hazlewood Act to cover tuition — which means both benefits apply simultaneously
• Result: Free tuition via Hazlewood + free housing stipend via GI Bill + potentially free books/supplies via GI Bill book stipend

This combination means a Texas veteran attending a state university can effectively attend school at no out-of-pocket cost while receiving a substantial monthly housing stipend. Source: Texas Higher Education Coordinating Board (THECB), 2025

How to Apply for the Hazlewood Act

1. Apply to and be admitted to your chosen Texas public college or university.
2. Gather your DD-214 and VA disability letter (if applicable) — the DD-214 is the key document proving Texas residency at enlistment and honorable discharge.
3. Complete the Hazlewood Act Exemption Application, available from the school's financial aid or veterans services office.
4. Submit to the school's veterans services or financial aid office each semester — some schools require reapplication per term, others maintain the exemption automatically.
5. The school certifies your eligibility and applies the exemption directly to your tuition bill before the payment deadline.

How to Maximize Your Texas Benefits

The key to maximizing Texas veteran benefits is understanding the interaction between federal VA benefits and state programs — and pursuing both simultaneously. Here's a strategic approach:

1. Get your correct VA rating first. Texas property tax exemptions scale with your disability rating, and the 100% P&T threshold unlocks dramatically better benefits. If your current rating is less than 100%, use the claim.vet disability calculator to assess your conditions and file for increases before applying for state benefits.
2. Apply for the property tax exemption immediately. Once you have your VA rating letter, file with your county appraisal district as soon as possible. The exemption applies to the current tax year even if you file mid-year.
3. Plan your education strategy around Hazlewood. If you have GI Bill entitlement remaining, use it alongside Hazlewood for maximum financial coverage. File the Hazlewood application with your school's veterans services office before each enrollment period.
4. Contact TVC for free claims help. If you haven't filed all the VA claims you're entitled to, visit a TVC claims agent. With 90+ locations, there's likely one near you — and their help is completely free.
5. Explore VLB loans if you're purchasing land or a home. VLB rates change quarterly. Compare them with current conventional and VA loan rates before financing any real estate purchase in Texas.

Frequently Asked Questions

Does the 100% property tax exemption apply to my entire property?

The exemption applies to your primary residence only. It does not cover investment properties, vacation homes, or land that isn't your principal place of residence. If you own additional properties, they are taxed normally — but the primary residence exemption has no dollar cap, making it extremely valuable regardless of your home's value.

Can I use the Hazlewood Act if I have a dishonorable discharge?

No. The Hazlewood Act requires an honorable or general (under honorable conditions) discharge. Veterans with other than honorable or dishonorable discharges do not qualify. However, if you have received a discharge upgrade through the Discharge Review Board or BCMR, you may then become eligible.

I'm a 100% P&T veteran but I don't live in Texas. Can I still use VLB loans?

VLB programs require that you be a Texas veteran — meaning you either enlisted as a Texas resident, have established Texas as your domicile, or are currently stationed in Texas. Non-resident veterans cannot use VLB programs.

How do I transfer my Hazlewood hours to my child?

File a Hazlewood Legacy designation with the Texas Higher Education Coordinating Board (THECB) at least 30 days before your child's intended enrollment. Your child then applies at the school using your THECB-issued Legacy authorization. The veteran must remain living at the time of each semester's usage.

Is the TVC different from the VA?

Yes. The Texas Veterans Commission (TVC) is a state agency, entirely separate from the federal Department of Veterans Affairs. TVC claims agents can help you navigate federal VA processes, but they do not make VA decisions. TVC programs (like the mental health program and employment services) are state-funded and do not affect your federal VA benefits.

Ready to make sure your VA disability rating reflects your true level of impairment? Use the claim.vet rating calculator or check out our state benefits tool to compare Texas benefits with other states. When you're ready to file, start your claim review — it's free.