If you are a veteran with a service-connected disability, you are sitting on one of the most powerful financial benefits in the country. In 2026, following recent legislative updates, these exemptions are more valuable than ever, significantly increasing your homebuying power and long-term financial stability.
1. The 2026 Baseline: Stacking Your Exemptions
Before we even look at your disability rating, 2026 brought a massive win for all Texas homeowners. The mandatory school district homestead exemption has increased to $140,000.
As a disabled veteran, you can “stack” your veteran exemptions on top of this homestead base, creating a massive reduction in your home’s taxable value.
2. The Rating-Based Exemption (DV Exemption)
This benefit applies to any property you own and designate (it doesn’t have to be your homestead). The amount of value removed from your tax assessment depends on your VA disability rating.
2026 Exemption Levels:
- 10% – 29% Disability: $5,000 off appraised value
- 30% – 49% Disability: $7,500 off appraised value
- 50% – 69% Disability: $10,000 off appraised value
- 70% – 100% Disability: $12,000 off appraised value
Pro Tip: If you are 65 or older and have at least a 10% disability rating, you automatically qualify for the maximum $12,000 partial exemption.
3. The “Total Freedom” Benefit: 100% Disability
If you are rated 100% disabled or receive 100% compensation due to Individual Unemployability (IU), the state of Texas provides a total property tax exemption on your residence homestead.
What this means:
- ❌ No School Taxes
- ❌ No City or County Taxes
- ❌ No MUD or Special District Taxes
- Result: Your property tax bill is $0.
In neighborhoods like Castlegate or Miramont, this can save a veteran between $8,000 and $15,000+ per year.
4. Protecting the Family: Surviving Spouse Benefits
Texas law ensures that your service continues to protect your family even after you’re gone.
- 100% Rating: If a 100% disabled veteran passes away, the surviving spouse keeps the 100% exemption, provided they do not remarry and the home remains their primary residence.
- Portability: If the surviving spouse moves to a new home, they can often “transfer” the dollar amount of the original exemption to the new property.
5. How to Apply in Brazos County (2026 Update)
These benefits are not automatic; you must file with the Brazos Central Appraisal District (BCAD).
What you need:
- Form 50-114: The standard Residence Homestead Exemption Application.
- VA Disability Letter: A current letter from the VA showing your percentage.
- Texas ID: Your Driver’s License address must match the property address.
- Deadline: The typical filing window is between January 1 and April 30, but for 100% disability, you can actually file mid-year as soon as you qualify.
6. Impact on Your Buying Power
This is where it gets exciting for buyers. When a lender calculates your “Debt-to-Income” ratio, a 100% tax exemption removes the “T” from your PITI (Principal, Interest, Taxes, Insurance) payment.
The Math: A veteran with a 100% exemption can often qualify for a home priced $60,000 to $100,000 higher than a civilian with the same income because their monthly “out-of-pocket” is so much lower.
Final Takeaway: You’ve Earned the Right to Save
Texas honors its veterans by ensuring that “home” remains affordable. Whether you’re at 10% or 100%, these exemptions represent a significant return on your service.
Do you know exactly how much your disability rating will save you on a specific home in B-CS? I can run a “Tax-Adjusted Monthly Payment” report for any house you’re interested in. Would you like to see how much more home you can afford with your 2026 exemptions applied?