How much does the Texas disabled veteran property tax exemption save on a home near Fort Hood?
If the VA rates you 100% disabled or pays you at the 100% rate through individual unemployability, Texas exempts the entire appraised value of your homestead from property tax, so a $300,000 home in Killeen, Harker Heights, Belton, or Copperas Cove owes no property tax on that value. Ratings from 10% to 99% take $5,000 to $12,000 off the taxable value instead, which saves far less. You apply through the Bell or Coryell County appraisal district after you own and live in the home, and the exemption can start partway through the year you buy.
By Stephen Harris, Good Life Team | October 25, 2026
At a 100% VA rating, the property tax line on your Texas homestead can drop to zero.
That one line changes how much house your monthly payment supports. It’s also one of the most misunderstood benefits we walk our VA buyers through, mostly because the rules come from Texas, the rating comes from the VA, and the savings depend on a tax rate set by your city, county, and school district. Nobody hands you all three pieces in one place.
VA loans are a big part of this market. About 56% of home sales in Killeen, Harker Heights, Copperas Cove, Nolanville, Belton, and Temple over the last 12 months closed with VA financing, and in Nolanville it was 78%. A lot of those buyers carry a disability rating. Here’s how the exemption works, what it’s worth on a $300K home, and where buyers get tripped up.
What the exemption is worth at each VA rating
Texas has two separate disabled veteran exemptions, and they work very differently.
- 100% rating or individual unemployability (Tax Code Section 11.131): the full appraised value of your residence homestead is exempt. It applies to every taxing unit on the bill.
- 10% to 99% rating (Tax Code Section 11.22): a fixed amount comes off the taxable value of one property you own. 10% to 29% gets $5,000. 30% to 49% gets $7,500. 50% to 69% gets $10,000. 70% and up gets $12,000. A veteran 65 or older with at least a 10% rating can also qualify for the $12,000 amount.
- Every homeowner: the general Texas homestead exemption takes $140,000 off your value for school district taxes. Homeowners 65 and older or disabled get an additional $60,000 off for school taxes.
Those amounts come from the Texas Comptroller’s disabled veteran exemption FAQ and the 100% disabled veteran exemption FAQ. Your rating letter from the VA is what the appraisal district looks at.
Now the math. Property tax in Texas is quoted per $100 of taxable value, and your combined rate is the city, county, school district, and any special district rates added together. We use $2.00 per $100 below only to show how the numbers work. Your actual rate depends on the exact address, so look it up on the appraisal district site before you trust any estimate, including ours.
- 100% rating, $300,000 homestead: $300,000 exempt. At $2.00 per $100, that’s $6,000 a year, or $500 a month, off your payment.
- 70% rating, same home: $12,000 off the taxable value. At $2.00 per $100, that’s $240 a year, or $20 a month.
- A quick rule of thumb: on a $300,000 home, every $0.10 of combined rate is $300 a year.
The gap between 70% and 100% is large. A buyer at 90% and a buyer at 100% can look at the same house in Harker Heights, where the median sale price was $314,000 over the last 12 months, and see very different monthly payments.
Where the exemption trips up buyers
The benefit is simple on paper. The timing is where buyers get surprised. These are the points we cover in every VA buyer’s Smart Buyer Plan call.
1. Your first escrow is usually set on the full tax bill
Your lender collects property tax in an escrow account and sets that amount at closing. The tax history on the house reflects the seller’s exemptions, and your exemption isn’t on file yet. Ask your lender how they’ll set your initial escrow and how they’ll treat the exemption when they qualify you. Once the appraisal district applies your exemption, the lender’s annual escrow review catches up, which can lower your payment and return any surplus.
2. You apply after you own and live in the home
The exemption follows your homestead, so it starts once the house is yours and you live there. File the Application for Residence Homestead Exemption (Comptroller Form 50-114) with the appraisal district where the home sits. The partial 10% to 99% exemption uses Form 50-135. Killeen, Harker Heights, Nolanville, Belton, and Temple are in Bell County, so that’s the Bell County Appraisal District. Most of Copperas Cove is in Coryell County, which uses the Coryell Central Appraisal District. Check the county on your title commitment if you’re near a line.
The usual deadline is April 30, and late applications can be filed up to five years after the tax delinquency date. Per the Comptroller, a veteran who qualifies partway through a year gets the 100% exemption for the applicable portion of that year. Tax is still owed for the days before it started.
3. Closing proration doesn’t include your exemption
Texas doesn’t have a transfer tax, but at the title company you and the seller split the current year’s property tax by the days each of you owns the home. That proration is based on the tax bill as it stands at closing. Our post on buyer closing costs on a $250K home in Bell County walks through how prorations and escrow setup show up on your closing statement.
4. PID assessments are a separate line
Many newer subdivisions sit inside a MUD (Municipal Utility District) or a PID (Public Improvement District). Both show up in the disclosures you get before you buy. A PID charges an assessment, which is billed differently from a property tax. Before you write an offer in a PID community, ask the PID administrator in writing whether your exemption reduces the assessment. Don’t assume it does.
5. The exemption stays with the homestead when you PCS
If you leave Fort Hood and the house stops being your homestead, the Comptroller says tax is due for the part of the year after the exemption ends. If you plan to rent the home out after your next PCS, run the rental numbers with the full tax bill. Our post on keeping your Fort Hood home as a rental or selling after PCS covers that decision. Talk to the appraisal district before you move out so you know exactly where you stand.
One more related benefit: veterans who receive VA disability compensation are generally exempt from the VA funding fee. Confirm your status on VA.gov’s funding fee page and make sure your lender has it right on your Loan Estimate.
How we use this when you’re buying near Fort Hood
Most listing sites estimate the monthly payment with a full tax bill. For a 100% rated buyer, that estimate can be off by hundreds of dollars a month, which can push homes you can comfortably afford out of your search. Ratings below 100% shift the payment much less, and it’s worth knowing that up front too.
So we run the payment both ways: with the full tax bill your lender may escrow at first, and with the exemption once it posts. We pull the actual combined rate for each address you’re considering, flag MUD and PID notices before you’re under contract, and make sure your lender and the title company have what they need. That’s the job. The listing agent works for the seller and the builder’s rep works for the builder. We sit on your side of the table.
If you’re still out of state with PCS orders, our Fort Hood PCS buyer guide covers timing, and the Smart Buyer Plan page lays out how we work from first showing to closing.
Frequently Asked Questions
Do 100% disabled veterans pay property tax in Texas?
Not on their residence homestead. A veteran with a 100% service-connected VA rating, or who is paid at the 100% rate through individual unemployability, can have the full appraised value of the homestead exempted under Tax Code Section 11.131. Other property the veteran owns is still taxed.
Can I get the exemption the same year I buy a home near Fort Hood?
Yes. The Texas Comptroller says a qualifying veteran can receive the 100% exemption for the applicable portion of the year once the new home qualifies as a homestead. File Form 50-114 with the Bell County Appraisal District or the Coryell Central Appraisal District after you close and move in.
What does a 70% VA rating save on property taxes in Texas?
A 70% to 99% rating takes $12,000 off the taxable value of one property. On a combined rate of $2.00 per $100, that’s about $240 a year. Your actual savings depend on the tax rates at your address.
Does a surviving spouse keep the 100% disabled veteran exemption?
A surviving spouse who hasn’t remarried can keep it on the home that was the homestead when the veteran died, as long as it stays their homestead. If the spouse moves, the exemption on the new home is limited to the dollar amount of the exemption on the former home in its last year, so it may not be a full exemption.
Does the exemption lower my VA loan payment right away?
Often not on day one. Your lender usually sets the first escrow before the appraisal district applies the exemption, and the payment adjusts at the next escrow review. Ask your lender how they’ll set the escrow and qualify you before you make an offer.
The short version: a 100% rating can take the property tax off your homestead entirely, partial ratings take off a smaller fixed amount, and the timing at closing is where most buyers get surprised. Know your number before you set your budget.
If you’re buying in the Fort Hood area with a VA loan, whether you have PCS orders, you’re retiring here, or you’re buying your first home, book a free Smart Buyer Plan call with our team. In 30 minutes we’ll walk through your budget, your timeline, and the areas that fit, and show you how we protect you from the first showing to the closing table. No pressure, no pitch. Book your call here, text or call 256-226-2757, or email stephen@mygoodlifeteam.com.
About Stephen Harris & The Good Life Team
Stephen Harris is a Texas Real Estate Broker (TX license 677386, All City Real Estate) and leads the Good Life Team, a Central Texas team that represents home buyers in Killeen, Harker Heights, Copperas Cove, Belton, Temple, Nolanville, Hutto, Pflugerville, and Round Rock. The team specializes in relocation buyers, Fort Hood PCS moves, VA loans, and new-construction representation, with roughly 500 closings and about $100M in volume. Their Smart Buyer Plan is built around one idea: who represents you matters, and our job is to protect you.
Sources: Texas Comptroller of Public Accounts, Disabled Veteran Exemption FAQ (Tax Code Sections 11.22 and 11.131) and 100% Disabled Veteran Exemption FAQ; Office of the Texas Governor, Homestead Exemptions presentation (December 2025); U.S. Department of Veterans Affairs, VA funding fee guidance. Market figures: CTXMLS closed sales, October 7, 2025 through October 6, 2026, for Killeen, Harker Heights, Copperas Cove, Nolanville, Belton, and Temple, compiled by the Good Life Team. The $2.00 per $100 rate is an illustration only and is not the rate for any specific property. Exemption amounts and rules can change; confirm with your appraisal district. This article is general information, not tax, lending, or legal advice; Stephen Harris is a real estate broker, not a lender or tax professional. Material relationships: this article names no builder, lender, title company, or inspector. The Good Life Team is not affiliated with or endorsed by the U.S. Department of Veterans Affairs, the Department of Defense, or any Texas appraisal district. Texas law requires all license holders to provide the Information About Brokerage Services form. TREC Consumer Protection Notice. Equal Housing Opportunity.