Texas Homestead Exemption & Disabled Veteran Property Tax Savings

What Is the Texas Homestead Exemption?

The Texas homestead exemption reduces the taxable value of your primary residence for property tax purposes. The state-mandated general homestead exemption removes $100,000 from your home's appraised value for school district taxes — meaning if your home is appraised at $350,000, you're only taxed on $250,000 for school purposes.

Most counties, cities, and special districts also offer their own additional exemptions on top of the state amount. In Bexar County (San Antonio), Guadalupe County (Schertz/Cibolo), and Comal County (Bulverde), local taxing entities commonly stack additional percentage-based exemptions, which can reduce your taxable value by tens of thousands of dollars more.

Beyond the dollar reduction, the homestead exemption also caps how much your appraised value can increase each year. Once you have a homestead exemption in place, your home's taxable value cannot rise more than 10% per year — no matter how fast the market moves. In a hot market like San Antonio, this cap alone can save homeowners thousands annually.

Who Qualifies for the General Homestead Exemption?

To qualify, you must own the property and use it as your principal residence as of January 1 of the tax year. You can only claim a homestead exemption on one property. The home must be in Texas, and you must be an individual owner — not a corporation or LLC.

You do not need to be a Texas native or long-time resident. If you purchased your home and moved in before January 1, you can file for the exemption that same year. If you moved in after January 1, you'll file for the following tax year — but you may be eligible for a prorated exemption in the year of purchase depending on your county.

Manufactured homes qualify if the owner also owns the land and the home is used as a primary residence. Renters do not qualify — the exemption applies to the property owner only.

How to File: Form 50-114

Filing is free and done through your county appraisal district. You'll complete Texas Form 50-114 (Application for Residence Homestead Exemption) and submit it along with a copy of your Texas driver's license or state ID showing your home address. The address on your ID must match the property address.

The deadline to file is April 30 of the tax year, but late applications are accepted through the end of the year with a penalty. Once approved, the exemption automatically renews each year — you don't need to refile unless your ownership or residency status changes.

You can file online, by mail, or in person at your county appraisal district office. Bexar County homeowners file with the Bexar Appraisal District (bcad.org). Guadalupe County homeowners file with the Guadalupe Appraisal District (guadalupead.org). Comal County homeowners file with the Comal Appraisal District (comalad.org).

Disabled Veteran Exemptions: A Tiered Benefit

Texas offers a separate, stackable property tax exemption for veterans with a service-connected disability rating from the VA. The exemption amount is tied directly to your disability rating — the higher your rating, the more of your home's value is exempt from taxation.

The tiers are: 10–29% disability rating — $5,000 exemption; 30–49% — $7,500 exemption; 50–69% — $10,000 exemption; 70–99% — $12,000 exemption. Veterans with a 100% disability rating — or those rated individually unemployable (IU) — receive a full exemption on their primary residence, meaning they pay zero property taxes on that home regardless of its value.

This 100% exemption is one of the most powerful financial benefits available to Texas veterans. On a $400,000 home in Bexar County with an effective tax rate around 2.3%, that's roughly $9,200 per year in savings — every year, for as long as you own and occupy the home.

Surviving Spouse Benefits

If a veteran who qualified for the 100% disabled veteran exemption passes away, the surviving spouse may continue to receive the exemption — provided the spouse has not remarried and continues to occupy the property as their primary residence.

Additionally, surviving spouses of veterans killed in action are entitled to a 100% property tax exemption on their primary residence, regardless of the veteran's disability rating at the time of death. This benefit is permanent as long as the spouse remains unmarried and continues to live in the home.

How to File for the Disabled Veteran Exemption: Form 50-135

File Texas Form 50-135 (Application for Disabled Veteran's or Survivor's Exemption) with your county appraisal district. You'll need to include documentation of your VA disability rating — a copy of your VA award letter or benefits summary letter is typically accepted.

The deadline is the same as the general homestead exemption: April 30, with late filing accepted through year-end. If your disability rating increases, you should refile to capture the higher exemption tier. The exemption applies to your primary residence only — not investment properties or vacation homes.

You can stack the disabled veteran exemption on top of the general homestead exemption. They are not mutually exclusive. A 100% disabled veteran who also has a homestead exemption benefits from both the full value exemption and the 10% annual appraisal cap.

Don't Leave Money on the Table

Many Texas homeowners — including veterans — miss out on these exemptions simply because they don't know they exist or assume someone else filed on their behalf. No one files for you automatically. It is your responsibility to apply, and the savings begin the year you file.

If you purchased your home in a prior year and never filed, you may be able to file a late application and receive a refund for up to two prior tax years. Contact your county appraisal district to ask about retroactive filing options.

As a Military Relocation Professional (MRP), I help veterans and military families navigate every financial advantage available to them in the Texas real estate market — from VA loan benefits to property tax exemptions. If you have questions about your eligibility or need help getting started, I'm happy to point you in the right direction.