Property Tax Exemption
Up to 100% Exemption
Texas offers tiered property tax exemptions based on your VA disability rating — from $5,000 off assessed value up to a complete 100% exemption for fully disabled veterans.
| VA Rating | Exemption Amount | Annual Savings (est.) |
|---|---|---|
| 10–29% | $5,000 off assessed value | ~$100–250/yr |
| 30–49% | $7,500 off assessed value | ~$150–375/yr |
| 50–69% | $10,000 off assessed value | ~$200–500/yr |
| 70–99% | $12,000 off assessed value | ~$240–600/yr |
| 100% or TDIU | FULL EXEMPTION — entire property value | $3,000–$15,000+/yr |
* 100% disabled veterans or those rated Individual Unemployability (TDIU) receive full exemption on their primary residence. Surviving spouses may also qualify to maintain the exemption.
Apply at Texas Comptroller →
File with your county appraisal district · Requires VA rating letter
Vehicle Registration & License Plates
Free Specialty Plate
Texas offers one free disabled veteran specialty license plate for veterans rated 50% or more, or who have a service-connected disability affecting mobility.
Disabled Veteran License Plate (Free)
One free set of license plates per eligible veteran — all fees waived including registration fee, inspection fee, and state taxes
Save $70–$200/yr
Eligibility
Must have a service-connected disability. Any rating may qualify; 50%+ or ambulatory disability is often required for the full waiver
Apply at TxDMV →
Requires VA disability letter or DD-214
Driver's License
Free for 100% Disabled
Texas waives the driver's license fee for veterans with a 100% service-connected disability rating.
Free Driver's License / ID Card
100% service-connected disabled veterans receive a free Texas driver's license or ID card. All renewal fees also waived.
Save $33+/renewal
Veteran Designation on License
Any honorably discharged veteran can add a "VETERAN" designation to their Texas driver's license for free with DD-214
State Income Tax
No State Income Tax
Texas has NO state income tax — one of only 9 states without one. All VA disability compensation, military retirement pay, and other income are 100% free from Texas state income tax.
VA Disability Pay — 100% State Tax Free
VA disability compensation is already exempt from federal income tax. In Texas, it's also exempt from state tax because Texas has no state income tax at all.
$0 state tax
Military Retirement — 100% State Tax Free
Military retirement pay, Survivor Benefit Plan (SBP), and reserve pay all avoid state taxation in Texas.
$0 state tax
Hunting & Fishing License
Free at 50%+
Texas Parks and Wildlife provides free combination hunting and fishing licenses for veterans with a service-connected disability rating of 50% or higher.
Free Combination License (50%+ SC disability)
Resident combination hunting and fishing license — includes freshwater/saltwater fishing, all legal hunting, and state trout stamp
Save $68/yr
Discounted License for All Veterans
Honorably discharged veterans with any service-connected disability may qualify for reduced rates — contact TPWD for current pricing
Apply at Texas Parks & Wildlife →
Requires VA rating letter showing 50%+ SC disability
Hazlewood Act — Free College Tuition
Up to 150 Credit Hours Free
The Hazlewood Act is one of the best state education benefits in the country — it waives tuition and most fees at Texas public colleges for eligible veterans and can be transferred to dependents.
Veteran Benefit (Hazlewood Act)
Up to 150 credit hours of exemption from tuition and fees at Texas public universities and community colleges. Must have entered service in Texas or have been a TX resident at entry.
Save $30,000–$80,000
Hazlewood Legacy Act (Transfer to Dependents)
Veterans who have exhausted their own Hazlewood hours, OR who have a 100% disability rating, can transfer unused hours to dependent children. Children have until age 25 to use them.
Save $50,000+/child
Qualifying Institutions
All Texas public universities (UT, Texas A&M, Texas Tech, etc.) and community colleges. Does NOT cover private schools or out-of-state schools.
Apply via Texas Higher Education Coordinating Board →
Apply each semester at your institution's registrar
Texas Veterans Land Board — Home Loans
Below-Market Rates
The Texas Veterans Land Board (VLB) offers below-market interest rate home loans, land loans, and home improvement loans exclusively for Texas veterans.
VLB Home Loan
Low fixed interest rate for first-lien mortgages. As of 2026, rates are typically 0.5–1.5% below conventional rates. Maximum loan: $726,200 (conforming limit). Veterans with 30%+ disability get an additional interest rate reduction.
Save $10,000–$50,000 lifetime
VLB Land Loan
Finance up to $150,000 to purchase Texas land at a below-market rate. 5-acre minimum, must be used for personal use.
VLB Home Improvement Loan
Borrow up to $50,000 for home improvements at reduced rates. No appraisal required for loans under $25,000.
Apply at Texas VLB →
Must be a Texas resident and honorably discharged
State Employment Preference
Hiring Preference
Texas state government gives preference to veterans in state employment hiring and promotion, particularly for veterans with service-connected disabilities.
Veterans Employment Preference
Veterans who pass all requirements for a state job must be placed at the top of the hiring list. Texas state agencies are required to give preference.
Additional Preference for Disabled Veterans
Veterans with a service-connected disability receive an enhanced preference and are placed before non-disabled veterans in hiring pools.
Texas Veterans Commission — Emergency Assistance
Grants Available
The Texas Veterans Commission (TVC) administers several emergency assistance programs for veterans in financial crisis.
TVC Fund for Veterans' Assistance
Grants to veterans organizations that provide direct services — including emergency financial assistance for rent, utilities, food, and medical expenses. Apply through local VSOs.
Up to $3,000
Texas Veterans + Family Alliance (TVFA)
Network of nonprofits providing emergency financial assistance, housing, mental health, and employment services to veterans and families
TVC Helpline: 1-512-463-6564
Free benefits counseling and referrals from Texas Veterans Service Officers across the state
Related Resources
Ready to File Your VA Disability Claim?
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