Texas is home to more than 1.7 million veterans — and the Lone Star State offers the most generous state-level veterans benefit package in the nation. No state income tax on any income. A complete property tax exemption for 100% P&T disabled veterans under Tex. Tax Code § 11.131. Up to 150 free college credit hours under the Hazlewood Act (§ 54.341) — transferable to children under the Hazlewood Legacy Act (§ 54.342). Eight state veterans homes. Employment preference under Tex. Gov't Code § 657.004. This is the complete 2026 guide.
With over 1.7 million veterans — roughly 8.5% of the adult population — Texas has built the most comprehensive state-level veterans benefit ecosystem in the country. When you combine no state income tax with the 100% property tax exemption, the Hazlewood Act's 150 free tuition hours (transferable to children), eight state veterans homes, and VLB loan programs, the total lifetime value of Texas state benefits for a 100% P&T disabled veteran with military retirement can easily exceed $500,000.
| Benefit | Who Qualifies | Texas Law |
|---|---|---|
| No state income tax (all income) | All Texas residents — no income tax period | Texas Constitution |
| 100% property tax exemption (homestead) | 100% P&T SC disabled veterans | Tex. Tax Code § 11.131 |
| Partial property tax exemptions | 10%–99% SC disabled veterans | Tex. Tax Code § 11.22 |
| Hazlewood Act — 150 free tuition hours | Texas-resident honorably discharged veterans | Tex. Educ. Code § 54.341 |
| Hazlewood Legacy — transfer to children | Eligible veterans with remaining hours | Tex. Educ. Code § 54.342 |
| Employment preference points | Veterans; disabled SC veterans (+10 pts) | Tex. Gov't Code § 657.004 |
| 8 state veterans homes | Eligible veterans; some spouses | VLB administration |
| VLB home, land, home improvement loans | Texas veterans | Tex. Nat. Res. Code § 161 |
| Free hunting/fishing license | 50%+ SC disabled veterans | Tex. Parks & Wildlife Code |
Texas is one of only nine states with no state income tax of any kind. This isn't a veterans-specific exemption — it's a constitutional reality that benefits every Texas resident, veteran or civilian. But for veterans with military retirement pay and VA disability compensation, the financial impact is enormous.
Here's what no state income tax means for veterans in practice:
| Income Source | Federal Tax Status | Texas State Tax |
|---|---|---|
| VA disability compensation (100%, no dependents, 2026: $3,938.58/mo) | Federally exempt (26 U.S.C. § 104) | $0 — no state income tax |
| Military retirement pay ($50,000/yr) | Federally taxable | $0 — no state income tax |
| CRDP / CRSC concurrent pay | Federally taxable or exempt depending on type | $0 — no state income tax |
| Annual state income tax savings vs. 5% state | — | $2,500+/yr on $50K retirement; $50,000+ over 20 years |
Compare Texas to states with 5% income tax (Mississippi, Missouri) or states with 13.3% top marginal rates (California): a 20-year military retiree receiving $60,000 in annual retirement pay saves $60,000–$74,000 in state taxes by living in Texas rather than a state with a 5% rate — and up to $159,600 vs. California over 20 years. This is the single largest state-level financial advantage Texas offers military retirees.
VA disability compensation is exempt from federal income tax under federal law, AND exempt from state income tax in Texas because Texas has no state income tax. A 100% disabled veteran in Texas receiving $3,938.58/month ($47,263/yr) in VA compensation pays $0 in taxes on that income — federal or state. Combined with military retirement also being state-tax-free, Texas is the most tax-efficient state in the nation for veteran income.
Texas property tax exemptions for disabled veterans are among the strongest in the nation. Under Tex. Tax Code § 11.131, veterans with a 100% Permanent and Total (P&T) disability rating from the VA receive a complete property tax exemption on their primary residence with no dollar cap. In Texas, where average effective property tax rates run around 1.60% — one of the highest in the nation — this exemption is extraordinarily valuable.
If you have a VA disability rating of 100% P&T — whether 100% schedular with P&T designation, or 100% via TDIU with P&T designation — you qualify for a complete property tax exemption on your primary residence. On a $450,000 home in Texas (near median for major metro areas in 2026), this exemption saves approximately $7,200/year. On a $750,000 home, savings exceed $12,000/year. Over 25 years, that's $180,000–$300,000 in total property tax relief — compounding as property values rise.
Veterans with VA ratings below 100% P&T also qualify for partial property tax exemptions under Tex. Tax Code § 11.22:
Partial exemption for veterans with service-connected ratings of 70%+. At a 1.6% tax rate, saves approximately $192/year.
Meaningful savings for mid-range ratings. At a 1.6% tax rate, saves approximately $160/year.
Available to veterans with moderate disability ratings — file with your county appraisal district today.
Even lower ratings qualify for real property tax relief. Every eligible veteran should apply — there's no reason not to.
The surviving spouse of a veteran who qualified for the § 11.131 100% P&T exemption 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. Additionally, under § 11.132, the surviving spouse of a veteran who died on active duty qualifies for the full exemption regardless of whether the veteran had a disability rating at time of death.
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Get Free Claim Help →Named after State Senator T.A. Hazlewood and originally enacted in 1923, the Hazlewood Act provides one of the most generous state education benefits available anywhere in the country. Under Tex. Educ. Code § 54.341, 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.
Critical point: There is no disability rating requirement for the Hazlewood Act. All honorably discharged Texas veterans who meet the residency and discharge requirements qualify — whether they have a 0% VA rating or a 100% P&T rating. Every eligible Texas veteran should use this benefit.
The Hazlewood Act covers tuition and required fees only. It does not cover room and board, textbooks, parking, or optional fees. The 150-hour cap is a lifetime bank — it tracks across all Texas public institutions and does not reset if you transfer schools. Monitor your usage through the Texas Higher Education Coordinating Board (THECB) system.
The optimal strategy for eligible veterans is to stack both benefits simultaneously:
This combination can deliver $15,000–$40,000+ in total annual value depending on school, location, and enrollment level. It is one of the most financially powerful education benefit combinations available to any American veteran.
The Hazlewood Legacy Act, codified at Tex. Educ. Code § 54.342, allows eligible Texas veterans to transfer their remaining Hazlewood credit hours to a dependent child. This transforms the Hazlewood benefit from a personal education benefit into a multi-generational family education benefit — one of the most distinctive veteran benefits in the country.
For the veteran (transferring parent):
For the child (receiving the benefit):
The optimal approach for veterans with children planning to attend college: use your own Hazlewood hours first for your own education. Once you've completed your degree or used your desired hours, formally designate your child for the Legacy benefit before they start college. Multiple children can share hours if the veteran's total balance supports it — a family with two college-bound children may be able to split the remaining hours between them.
Texas operates eight state veterans homes through the Texas Veterans Land Board (VLB), providing skilled nursing care and assisted living services for eligible veterans and, in some circumstances, their spouses. All eight are VA-certified, allowing the VA to contribute per-diem payments toward the cost of care for eligible service-connected veterans.
Amarillo, TX. Serving veterans in the Texas Panhandle and Tri-State region including New Mexico and Oklahoma border areas.
Big Spring, TX. Serving veterans in west Texas including the Midland-Odessa region and the Big Country.
Bonham, TX (Fannin County). Serving veterans in northeast Texas including the Texoma region and Sherman-Denison corridor.
El Paso, TX. Serving veterans in far west Texas, southern New Mexico, and the Fort Bliss region.
Floresville, TX (Wilson County). Serving veterans in south Texas including the San Antonio metro and surrounding Hill Country region.
McAllen, TX (Hidalgo County). Serving veterans in the Rio Grande Valley and deep south Texas including the Brownsville and Laredo corridors.
Temple, TX (Bell County). Serving veterans in central Texas including the Fort Cavazos (formerly Fort Hood) region, Waco, and Austin corridors.
Tyler, TX (Smith County). Serving veterans in east Texas including the Longview, Nacogdoches, and Lufkin regions.
To apply for admission to a Texas State Veterans Home, contact the Texas Veterans Land Board at 1-800-252-8387 or visit glo.texas.gov/vlb. VA certification means VA may pay a per-diem toward care costs for eligible service-connected veterans — significantly reducing the out-of-pocket cost for qualified residents. The VA's Aid & Attendance benefit may also supplement costs for qualifying veterans.
The Texas Veterans Land Board (VLB) is a unique state institution with no equivalent in most other states. The VLB administers three distinct below-market loan programs exclusively for Texas veterans:
The VLB offers competitive interest rate home loans for the purchase of primary residences in Texas. Rates are often at or below prevailing market rates and may be combined with federal VA home loan guaranty benefits. VLB home loans do not require a down payment in many cases and have no private mortgage insurance (PMI) requirement. Rates are updated periodically — check glo.texas.gov/vlb for current rate sheets.
The VLB's land loan program provides financing for the purchase of rural land in Texas. With Texas's strong land market and agricultural tradition, VLB land loans provide veterans access to below-market financing for land purchases ranging from small tracts to larger rural properties.
The VLB also offers home improvement loans for existing primary residences, allowing veterans to finance renovations, upgrades, accessibility modifications, and other improvements at below-market interest rates. This is particularly valuable for disabled veterans needing to modify their homes for accessibility.
VLB loan programs require that the applicant be a Texas veteran — meaning they either enlisted or were inducted while a Texas resident, have established Texas as their legal domicile, or are currently stationed in Texas on active duty. Contact the VLB at 1-800-252-8387 or glo.texas.gov/vlb for current eligibility rules, rate information, and application procedures.
The Texas Veterans Commission (TVC) is the state's primary veterans services agency. TVC operates claim representatives at 90+ locations statewide, administers veterans employment programs, provides mental health services, and coordinates federal and state benefits navigation — all free of charge to Texas veterans.
TVC claims representatives are VA-accredited and can assist with VA disability claims, benefits navigation, appeals at all levels (Supplemental Claim, Higher-Level Review, Board of Veterans' Appeals), and coordination with state programs. Unlike some VSO organizations, TVC representatives work exclusively for veterans and are funded by the State of Texas.
Key TVC programs include:
Texas Veterans Commission
Phone: (512) 463-5538
Website: tvc.texas.gov
Find your nearest TVC office at tvc.texas.gov/field-offices/ — with 90+ locations, there is almost certainly one within driving distance.
Under Tex. Gov't Code § 657.004, Texas veterans receive employment preference points in state government hiring — a meaningful advantage when competing for state agency positions.
| Veteran Category | Preference Points |
|---|---|
| Veteran with honorable discharge | 5 preference points added to passing exam score |
| Veteran with service-connected disability | 10 preference points added to passing exam score |
| Surviving spouse of veteran (killed on active duty or died from SC condition) | Points available — confirm with Texas State Auditor's Office |
Veterans preference under § 657.004 applies to scored examinations and selection procedures for positions in state agencies. The preference is applied to passing scores — only veterans who pass the exam receive the preference points. For competitive state positions in law enforcement, corrections, transportation, and other fields, these preference points can be decisive.
The Texas Workforce Commission (TWC) provides priority employment services for veterans through its network of Workforce Solutions offices. The state receives federal JVSG funding for Disabled Veterans Outreach Program (DVOP) specialists and Local Veterans Employment Representatives (LVERs), who provide intensive employment services and employer outreach. Veterans seeking civilian employment in Texas should register with TWC and specifically request veteran services at their nearest Workforce Solutions office.
Texas Parks and Wildlife Department (TPWD) provides a free lifetime hunting and fishing license for veterans with a 50% or greater service-connected disability rating. This is one of the most generous hunting/fishing license thresholds in the country — Mississippi and many other states require 100% disability for free licenses. Texas veterans at 50%+ SC disability pay nothing for their annual state hunting and fishing privileges.
To obtain the free license, bring your VA rating letter or VA-issued ID to any TPWD license location or apply online. The license covers standard statewide hunting and freshwater and saltwater fishing. Additional licenses for specific activities (alligator, commercial, etc.) may have separate fee structures.
Texas offers an extensive range of specialty license plates for veterans including Disabled Veteran plates (issued at no fee for 100% SC disabled veterans), Purple Heart plates, Combat Veteran plates, branch-of-service plates, and Texas-specific military heritage plates. Disabled veteran plates issued to 100% SC veterans are free and may include additional vehicle registration fee waivers. Contact the Texas Department of Motor Vehicles (TxDMV) for current plate options and eligibility.
Texas maintains robust programs for active-duty military families stationed in the state. Surviving spouses of active-duty service members receive significant state support including the § 11.131 and § 11.132 property tax exemptions. The Texas National Guard provides tuition assistance for Guard members through the Military Department's Education Office. For families of deployed Guard members, the Texas National Guard Family Assistance Centers provide coordination and referral services for state and federal benefits.
The full value of Texas veteran benefits is only realized when federal and state programs are pursued in parallel. Here's a strategic approach for maximizing the complete package:
Editorial Standards: This article was written by Sarah Henley, a veterans benefits researcher specializing in state-level benefit programs. Content is verified against Tex. Tax Code § 11.131, Tex. Educ. Code §§ 54.341–54.342, Tex. Gov't Code § 657.004, current 38 CFR regulations, and VA.gov guidance. Last reviewed: June 2026. Not legal advice — for representation on your specific claim, talk to a VA-accredited attorney.
Yes. Under Tex. Tax Code § 11.131, veterans with a 100% Permanent and Total (P&T) disability rating receive a complete property tax exemption on their primary residence — no dollar cap. Veterans with 10%–99% ratings qualify for partial exemptions under § 11.22 ($5,000–$12,000 off assessed value). Apply with your county appraisal district using Form 50-135.
Texas has no state income tax at all — not just for military retirement, but for all income. Military retirement pay, VA disability compensation (also federally exempt), and all other income are free from Texas state tax. Compared to states with 5% income tax, this saves a military retiree $2,500+/yr on a $50,000 retirement — $50,000+ over 20 years.
The Hazlewood Act (Tex. Educ. Code § 54.341) provides up to 150 credit hours of free tuition at any Texas public college for eligible Texas veterans — those who were Texas residents at enlistment and received an honorable discharge. No disability rating is required. Stack with the Post-9/11 GI Bill for maximum financial benefit (free tuition + BAH housing stipend + book allowance).
The Hazlewood Legacy Act (Tex. Educ. Code § 54.342) allows eligible Texas veterans to transfer unused Hazlewood hours to their dependent children for use at Texas public colleges. The child must be a dependent on the veteran's most recent tax return and be 25 or younger (with exceptions). The veteran must formally designate the child through the THECB at least 30 days before enrollment.
Texas operates eight state veterans homes through the VLB: Amarillo, Big Spring, Bonham, El Paso, Floresville, McAllen, Temple, and Tyler. All are VA-certified. Contact the VLB at 1-800-252-8387 or glo.texas.gov/vlb to apply.
Under Tex. Gov't Code § 657.004, veterans receive 5 preference points on state civil service exams (honorable discharge) or 10 points (service-connected disability) added to passing scores. This applies to initial hiring for positions in Texas state agencies.
The § 11.131 exemption applies to your primary residence only. Investment properties, vacation homes, and non-primary-residence land are taxed normally. The partial exemptions under § 11.22 (for 10%–99% ratings) are also limited to the primary residence.
Tex. Tax Code § 11.131 (100% P&T exemption) · § 11.22 (partial exemptions) · Tex. Educ. Code § 54.341 (Hazlewood Act) · § 54.342 (Hazlewood Legacy Act) · Tex. Gov't Code § 657.004 (employment preference) · Texas Veterans Land Board: glo.texas.gov/vlb · Texas Veterans Commission: tvc.texas.gov · Texas THECB: thecb.state.tx.us · Texas Comptroller: comptroller.texas.gov
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