If you’re a disabled veteran buying in Killeen, Harker Heights, or anywhere in Bell County, this is one of the most valuable — and most overlooked — benefits I talk buyers through. Texas doesn’t just waive sales tax on your car or give you a break on vehicle registration. Depending on your VA disability rating, it can wipe out your property tax bill entirely.
Let me walk through exactly how it works.
If you’re rated 100% disabled (or IU), your property tax bill goes to zero
Under Texas Tax Code 11.131, a veteran who receives 100% disability compensation from the VA — either a 100% schedular rating or a determination of Individual Unemployability (IU) — is fully exempt from property tax on their residence homestead. Not a discount. Zero, every year, on every taxing unit: city, county, school district, all of it.
There’s no income limit and no cap on home value. I’ve had clients ask if this only applies to modest homes — it doesn’t. A 100% P&T veteran with a $600,000 home in Harker Heights owes the same $0 in property tax as one with a $200,000 home in Killeen.
The catch: it only applies to your primary residence, not a rental or a second property. If you’re weighing VA loan options for your next home here, this is worth factoring into your monthly budget planning early — it can meaningfully change what you can afford.
If you’re rated below 100%, you still get a real reduction
Ratings from 10% up to 99% qualify for a tiered exemption under Tax Code 11.22 — a fixed dollar amount knocked off your home’s assessed value before taxes are calculated:
- 10–29% rating: $5,000 off assessed value
- 30–49% rating: $7,500 off
- 50–69% rating: $10,000 off
- 70–99% rating: $12,000 off
This isn’t a percentage-of-tax discount — it’s a flat reduction to the number your tax bill is calculated from. And unlike the 100% exemption, this one isn’t tied strictly to your homestead — you can assign it to any one property you own and designate.
Extra exemption for veterans 65 and older
If you’re 65+ with at least a 10% rating — or you’re totally blind in one or both eyes, or you’ve lost the use of one or more limbs — you qualify for an additional $12,000 exemption on top of whatever your rating already gets you. That’s a maximum combined exemption of $24,000 for a senior veteran with a qualifying rating.
Surviving spouses keep the benefit
If you’re a veteran’s unremarried surviving spouse and you continue living in the home as your primary residence, you keep the exemption. If you later move, you can carry the same dollar-amount exemption to your new Texas homestead. This is one of the more generous surviving-spouse provisions in the country, and it’s worth knowing about even if it’s not something you need today.
How to actually apply
You’ll file with your county appraisal district — for most of my clients, that’s the Bell County Appraisal District. You’ll need:
- Form 50-114 (Residence Homestead Exemption Application) if you qualify for the full 100% exemption
- Form 50-135 (Disabled Veteran’s Exemption Application) for the tiered partial exemption
- A current VA disability letter confirming your rating or IU status
- A Texas driver’s license or ID showing the same address as the property
The standard filing deadline is April 30, though appraisal districts generally allow some late filing beyond that — I’d confirm your exact window directly with BCAD rather than assume, since the allowed late-filing period can vary.
Why this matters when you’re house hunting
This exemption changes real numbers — your monthly PITI, what you qualify for, what “affordable” actually means for your family. If you’re comparing neighborhoods in Killeen, Harker Heights, or Copperas Cove, I’d factor your exemption into the comparison before you fall in love with a price point that doesn’t account for it. And if you’re still working out timing on your move, my PCS Toolkit has the rest of what you need in one place.
A quick note: I’m not a tax professional, and exemption rules can shift by legislative session — this is general information, not tax advice. Confirm your specific situation with Bell County Appraisal District or a qualified tax advisor before you file.
Questions about how this plays into your home search? Reach out here or call/text me directly.
📞 Call or text me: 737-203-0360
