El Paso Disabled Veteran Property Tax Exemption: Complete VA Rating Guide

The amount of your disabled veteran property tax exemption in Texas depends entirely on your VA disability rating percentage. The Department of Veterans Affairs assigns a disability rating between 10 percent and 100 percent based on the severity of your service‑connected conditions. Texas law uses this rating to determine how much of your property's assessed value is exempt from taxation. The higher your rating, the larger your exemption. This is a straightforward, tiered system that rewards veterans proportionally based on the degree of disability they sustained during military service.

Under Texas Tax Code Section 11.22, disabled veterans with ratings below 100 percent receive a partial exemption that removes a specific dollar amount from their property's taxable value. This is often referred to as the standard disabled veteran exemption. The exemption amounts are set by state law and apply uniformly across all Texas counties, including El Paso. Many veterans ask what is a $12,000 property tax exemption in Texas, and the answer is that it represents the maximum partial exemption available to veterans with disability ratings between 70 and 100 percent under the standard program. Here is the complete breakdown of exemption amounts by VA rating.

It is critically important to understand that the $12,000 exemption under Section 11.22 is separate from the total exemption available under Section 11.131. Veterans who are rated 100 percent disabled or who are classified as unemployable due to service‑connected disabilities qualify for a completely different and far more valuable benefit. Under Section 11.131, the 100 percent disabled veteran property tax exemption removes your entire property value from taxation. You pay zero property taxes on your homestead. In El Paso, where the combined property tax rate exceeds 2.5 percent, this can mean savings of $5,000, $7,000, or even $10,000 or more per year depending on your home's value.

Veterans with a 90 disabled veteran property tax exemption Texas rating receive the $12,000 standard exemption under Section 11.22 unless they also qualify for Total Disability based on Individual Unemployability, commonly known as TDIU. If the VA has determined that your service‑connected disabilities prevent you from maintaining substantially gainful employment, you are treated as 100 percent disabled for property tax purposes even if your combined rating is technically 90 percent or lower. This distinction is enormously important because it can mean the difference between a $12,000 reduction and a complete elimination of your property tax bill. If you believe you may qualify for TDIU, consult with a Veterans Service Officer at Fort Bliss or the El Paso County Veterans Service Office to explore your options.

The disabled veteran exemption also applies to veterans who have lost the use of one or more limbs, who are totally blind in one or both eyes, or who are paraplegia patients. These conditions may qualify you for the 100 percent exemption regardless of your official VA combined rating. Texas law recognizes that certain catastrophic injuries warrant complete property tax relief, and the application process for these situations follows the same general steps outlined later in this guide. The key is providing the correct medical documentation from the VA that confirms your specific condition and its connection to your military service.

The 100 percent disabled veteran property tax exemption is the single most powerful property tax benefit available in the state of Texas. Under Texas Tax Code Section 11.131, a veteran who has a disability rating of 100 percent or who is determined to be unemployable by the VA receives a total exemption on the appraised value of their homestead. This means your entire home value is removed from the tax rolls, and you owe absolutely nothing in property taxes to any taxing entity, including school districts, the City of El Paso, El Paso County, the hospital district, El Paso Community College, and all special districts. The savings are immediate, permanent as long as you maintain eligibility, and apply to your primary residence regardless of its value.

To put this in perspective with real El Paso numbers, consider a veteran who owns a home appraised at $250,000. With the combined El Paso County tax rate of approximately 2.69 percent, this veteran would normally owe roughly $6,725 per year in property taxes. With the 100 percent disabled veteran property tax exemption, that bill drops to zero. Over a ten‑year period, that represents $67,250 in savings. Over twenty years, the savings exceed $134,000. For veterans on fixed incomes or those dealing with the financial challenges that often accompany severe disabilities, this exemption can be the difference between keeping their home and facing foreclosure due to unpaid property taxes.

The 100 percent exemption applies only to your homestead, which is the property you own and occupy as your primary residence. If you own additional properties such as rental homes, vacant land, or investment properties, those properties do not receive the exemption. However, your homestead can include up to 20 acres of land if it is used for residential purposes. This is particularly relevant for veterans who own larger properties in the outskirts of El Paso, such as in the Lower Valley, Canutillo, or the far east side near Montana Vista.

One of the most common questions veterans ask is whether the 100 percent disabled veteran property tax exemption affects their homestead exemption protections under Texas law. The answer is no. The disabled veteran exemption and the standard homestead exemption are separate programs. When you qualify for the 100 percent disabled veteran exemption, it supersedes the standard homestead exemption for tax calculation purposes because your entire value is already exempt. However, you retain all of the legal protections associated with the homestead designation, including the creditor protection that prevents forced sale of your primary residence and the ten percent appraisal cap that limits annual increases in your taxable value.

Veterans who currently receive the standard $12,000 partial exemption and later receive an increased VA rating to 100 percent or receive a TDIU determination should immediately contact EPCAD to update their exemption status. The upgrade from a $12,000 partial exemption to a complete exemption represents an enormous increase in savings. For a $200,000 home in El Paso, the difference is approximately $5,060 per year. Do not wait until the next tax year to file. Contact EPCAD as soon as you receive your updated VA determination letter, and they will process the change as quickly as possible, potentially applying it retroactively.

Using a disabled veteran property tax exemption Texas calculator is straightforward once you understand the formula. Your savings depend on three variables: your VA disability rating, your home's appraised value, and the combined tax rate of all taxing entities that levy taxes on your property in El Paso County. The combined effective tax rate in El Paso typically ranges from 2.50 percent to 2.80 percent depending on your exact location and which special districts apply to your property. For the examples below, we use an average combined rate of 2.69 percent, which is representative of most El Paso neighborhoods.

The basic formula for calculating your savings with a partial exemption under Section 11.22 is simple. Take your exemption amount based on your VA rating, multiply it by the combined tax rate, and divide by 100. The result is your annual savings. For the 100 percent disabled veteran property tax exemption under Section 11.131, the calculation is even simpler: your entire assessed value multiplied by the combined tax rate divided by 100 equals your total savings, because you pay nothing.

These numbers demonstrate why the 100 percent disabled veteran property tax exemption is so extraordinarily valuable. A veteran with a $250,000 home in El Paso saves nearly $6,725 every single year. Over a 20-year period, that totals $134,500 in savings. Even the partial exemptions provide meaningful relief. A veteran with a 50 percent rating saves $269 per year, which adds up to $2,690 over a decade. Every dollar counts, especially for veterans managing medical expenses and other costs associated with their service-connected disabilities.

It is worth noting that these calculations assume the standard El Paso combined tax rate. Your actual rate may vary slightly depending on your specific location within the county. Properties in the City of El Paso have different rates than properties in unincorporated areas or in the Town of Anthony, Horizon City, or other municipalities. You can find your exact tax rate by looking up your property on the El Paso County Tax Assessor-Collector payment portal or by contacting EPCAD directly. The principle remains the same regardless of your exact rate: the disabled veteran exemption reduces your taxable value, and the higher your combined rate, the more you save.

For veterans who also qualify for the standard residential homestead exemption, the savings stack together. If you have a 40 percent VA rating and you also have the general homestead exemption, your taxable value for school district purposes is reduced by $100,000 from the homestead exemption plus $7,500 from the disabled veteran exemption, for a total reduction of $107,500. For other taxing entities, the homestead exemption amounts vary, but the disabled veteran exemption applies across all entities. Filing for both exemptions simultaneously through your El Paso homestead exemption application ensures you receive the maximum possible savings.

The Texas disabled veteran property tax exemption form you need depends on which exemption you are applying for. The Texas Comptroller of Public Accounts provides standardized forms that are used by all appraisal districts across the state, including EPCAD in El Paso. Understanding which form to use and what supporting documents to gather before you begin will streamline the process and help you avoid delays caused by incomplete applications.

For the standard partial disabled veteran exemption under Section 11.22, you will use the Texas Comptroller Form 50-135, officially titled Application for Disabled Veteran's or Survivor's Exemption. This is the same form used for all disability rating levels from 10 percent through 100 percent under the standard program. The form asks for your personal information, property details, VA disability rating, and requires you to attach supporting documentation from the Department of Veterans Affairs.

For the 100 percent disabled veteran property tax exemption under Section 11.131, you will also use Form 50-135 but will check the specific box indicating that you are applying for the total exemption based on a 100 percent disability rating or TDIU determination. Some appraisal districts, including EPCAD, may also accept the general homestead exemption application Form 50-114 with the disabled veteran section completed. However, using Form 50-135 is recommended because it is specifically designed for disabled veteran exemptions and ensures all required information is captured.

The most critical document in your application is the VA Disability Rating Letter, also known as the VA Benefits Summary Letter. This letter confirms your disability rating percentage and indicates whether your disabilities are service-connected. You can obtain a current copy of this letter by logging into your VA.gov account, calling the VA at 1-800-827-1000, or visiting the Fort Bliss VA clinic. EPCAD requires this letter to verify your eligibility, and it must be current. An outdated letter showing a previous rating will not be accepted if your rating has changed.

Your DD-214 is your official military discharge document that proves you served in the armed forces. If you do not have a copy of your DD-214, you can request one from the National Personnel Records Center through the National Archives website or by submitting Standard Form 180. Many veterans who served decades ago may have misplaced this document, but it is essential for the exemption application. The El Paso County Veterans Service Office can also assist you in obtaining a replacement copy.

How do I apply for disabled veterans property tax exemption in Texas? The process begins with gathering these documents and completing the appropriate form. You can download Form 50-135 from the Texas Comptroller's website or pick up a copy at the EPCAD office located at 5801 Trowbridge Drive in El Paso. Once you have all documents assembled, you can submit your application in person, by mail, or in some cases electronically. The next section provides the complete step-by-step application process specific to El Paso County.

The disabled veteran property tax exemption application process in El Paso is straightforward when you have all your documents prepared. EPCAD has made the process as veteran-friendly as possible, and their staff is experienced in handling military exemption applications. Here is the exact step-by-step process for how to apply for disabled veterans property tax exemption in Texas through the El Paso Central Appraisal District.

The entire process from gathering documents to receiving confirmation typically takes four to six weeks. If you submit your application early in the year, well before the April 30th deadline, you give EPCAD ample time to process it and apply the exemption to your current tax year. Veterans who miss the deadline can still apply, but the exemption may not take effect until the following tax year. There is no fee to apply for the disabled veteran property tax exemption, and you only need to apply once unless your disability rating changes or you move to a different property.

Texas law provides important property tax protections for the surviving spouses of disabled veterans. If your spouse was a disabled veteran who qualified for the property tax exemption at the time of their death, you may be eligible to continue receiving the same exemption on your homestead. The specific rules depend on which exemption your spouse held and whether you continue to occupy the same property. Understanding these provisions is essential for military families in El Paso who want to preserve the financial benefits their veteran earned through service.

For surviving spouses of veterans who held the 100 percent disabled veteran property tax exemption under Section 11.131, Texas Tax Code Section 11.131(b) allows the surviving spouse to continue receiving the total exemption on the same property as long as they do not remarry and continue to occupy the home as their primary residence. This means the surviving spouse continues to pay zero property taxes on the homestead. If the surviving spouse later moves to a different property in Texas, they may transfer the exemption to the new homestead, but the exemption amount is capped at the dollar value of the exemption on the original property. This transfer provision ensures that surviving spouses are not forced to remain in a home that no longer meets their needs simply to preserve their tax benefit.

For surviving spouses of veterans who held the partial exemption under Section 11.22, the rules are slightly different. The surviving spouse can continue to receive the same partial exemption amount that the veteran was receiving, provided they do not remarry and continue to reside in the homestead. If the veteran had a $12,000 exemption based on a 70 to 100 percent rating, the surviving spouse continues to receive the $12,000 exemption. This benefit transfers to a new homestead if the surviving spouse moves within Texas.

There is also a separate and distinct exemption for surviving spouses of military members who were killed in action or who died in the line of duty. Under Texas Tax Code Section 11.133, the surviving spouse of a member of the armed forces who was killed or fatally injured in the line of duty receives a total property tax exemption on their homestead, regardless of whether the deceased service member had any prior disability rating. This exemption is equivalent to the 100 percent disabled veteran exemption and eliminates all property taxes on the surviving spouse's homestead. Given the significant military presence at Fort Bliss and the El Paso military community, this provision is particularly relevant for Gold Star families in our area.

If you are a surviving spouse who needs to transfer the property into your name through the Texas probate process or through an affidavit of heirship, you should file for the surviving spouse exemption simultaneously. EPCAD can process both the ownership transfer documentation and the exemption application together, which prevents any gap in your tax-exempt status. If you are dealing with Texas community property laws affecting your inherited home, consult with an estate attorney who understands both military benefits and Texas property law.

The application process for surviving spouses follows the same general steps as the disabled veteran application. You will use Form 50-135 and check the surviving spouse section. In addition to the standard documents, you will need to provide a certified copy of the veteran's death certificate and documentation showing that the veteran was receiving the disabled veteran exemption at the time of death. EPCAD staff are trained to handle these sensitive situations with compassion and can guide you through the process if you visit their office in person.

One of the most common questions veterans ask when comparing locations is how the disabled veteran property tax exemption works in different Texas counties. The good news is that the exemption amounts under Sections 11.22 and 11.131 are set by state law and apply uniformly across all 254 Texas counties. Whether you live in El Paso, Harris County, Bexar County, Dallas County, or any other jurisdiction, the exemption dollar amounts and eligibility requirements are identical. A veteran with a 50 percent rating receives a $10,000 exemption in El Paso just as they would in Houston. A 100 percent disabled veteran pays zero property taxes in El Paso just as they would in San Antonio.

However, the actual dollar savings differ significantly between counties because property tax rates vary. The Harris County disabled veteran property tax exemption provides the same exemption amounts, but because Harris County's combined tax rate is different from El Paso's, the annual savings in dollars will differ. El Paso's combined rate of approximately 2.69 percent is higher than many Texas counties, which means the disabled veteran exemption actually saves El Paso veterans more money in absolute terms than veterans in lower-tax areas. This is one of the few situations where El Paso's high property tax rates work in a veteran's favor, because the exemption removes value that would otherwise be taxed at a higher rate.

As the table shows, El Paso veterans with the 100 percent disabled veteran property tax exemption save more per year than veterans in most other major Texas counties simply because El Paso's tax rate is higher. A 100 percent disabled veteran in El Paso with a $250,000 home saves $6,725 per year compared to $5,775 in Harris County. Over a decade, that difference amounts to nearly $9,500 more in savings for the El Paso veteran. This is an important consideration for military retirees choosing where to settle after leaving active duty at Fort Bliss.

The application process is also consistent across counties. Whether you are filing with EPCAD in El Paso or the Harris County Appraisal District in Houston, you use the same state forms and provide the same documentation. The only difference is where you submit your application. If you are relocating from El Paso during a PCS move to another Texas location, you will need to file a new exemption application with the appraisal district in your new county. Your exemption does not automatically transfer between counties, so make this a priority item on your moving checklist.

After years of helping veterans navigate the property tax system in El Paso, we have identified the most common mistakes that delay or prevent approval of disabled veteran property tax exemption applications. Avoiding these pitfalls will save you time and ensure you start receiving your benefits as quickly as possible.

If you have already been paying property taxes that you should not have been paying because you did not know about the disabled veteran exemption, you may be able to recover some of those overpayments. Texas law allows you to apply retroactively for up to two years of missed exemptions. Contact EPCAD to discuss your specific situation and determine whether you are eligible for a refund of property taxes you may have overpaid. The refund process requires filing the exemption application with a note requesting retroactive application, and EPCAD will coordinate with the El Paso County Tax Assessor-Collector to process any refund you are owed.

The disabled veteran property tax exemption applies exclusively to your homestead, which is the property you own and occupy as your primary residence. However, many veterans in El Paso own additional properties or face unique circumstances that raise questions about how the exemption interacts with their broader real estate portfolio. Understanding these special situations will help you make informed decisions about your property and your tax obligations.

If you own a rental property in addition to your homestead, the rental property does not qualify for the disabled veteran exemption. Only your primary residence receives the benefit. This is true regardless of your disability rating, even if you hold the 100 percent exemption. Your rental property will be taxed at its full assessed value with no veteran-related reductions. If you are considering whether to keep or sell a rental property in El Paso, factor in the full property tax burden on that investment when calculating your returns. Some veterans find that the tax savings on their homestead allow them to comfortably absorb the taxes on a rental property, while others prefer to simplify their portfolio.

Veterans who have inherited a home they do not want to keep face a different set of considerations. If you inherit a property and move into it as your primary residence, you can apply for the disabled veteran exemption on that property. However, you must first complete the determination of heirship or probate process to transfer the property into your name. EPCAD requires that you be the legal owner of record before they will process an exemption application. If you inherit a property but do not plan to live in it, the disabled veteran exemption does not apply to that property.

When you sell your homestead and purchase a new home in El Paso, you must file a new disabled veteran property tax exemption application for the new property. The exemption on your old property will be removed once the sale is recorded and the new owner takes possession. There is no automatic transfer. If you are working with a cash home buyer in El Paso for a quick sale, make sure to file your exemption application for your new home as soon as possible after closing to avoid any gap in coverage. Veterans who need to sell their El Paso house quickly should coordinate the timing of their exemption applications to minimize any period where they are paying full taxes on a new property.

Veterans who are struggling with mortgage payments should know that the disabled veteran property tax exemption can significantly reduce your monthly escrow payment if your lender collects taxes through escrow. Once your exemption is approved, contact your mortgage servicer and request an escrow analysis. The reduction in your annual tax bill should result in a lower monthly mortgage payment. For a 100 percent disabled veteran, this reduction can be $400 to $800 per month or more, which can make the difference between keeping your home and facing financial hardship.

Veterans who own property with outstanding property liens should be aware that the disabled veteran exemption does not eliminate existing tax liens. If you owe back taxes from years before your exemption was applied, those debts remain. The exemption only affects current and future tax years. If you have accumulated delinquent taxes that could lead to tax foreclosure, contact the El Paso County Tax Assessor-Collector to discuss payment plans and deferral options for the outstanding balance while your exemption prevents new taxes from accruing.

Beyond the property tax exemption, disabled veterans in El Paso Texas have access to several additional benefits that can reduce the cost of homeownership and improve their quality of life. These benefits are often overlooked, and combining them with your property tax exemption creates a comprehensive package of financial support that honors your military service.

The Fort Bliss Soldier and Family Assistance Center provides comprehensive support for disabled veterans transitioning out of active duty or dealing with service-connected disabilities. Their staff can help you navigate the VA claims process, connect you with local resources, and ensure you are receiving every benefit you have earned. The El Paso County Veterans Service Office, located at 500 East San Antonio Avenue, also provides free assistance with VA claims, exemption applications, and benefit counseling. Both offices are staffed by trained professionals who understand the unique challenges facing disabled veterans in El Paso Texas.

Veterans who are considering purchasing a home in El Paso should factor the disabled veteran property tax exemption into their home buying budget. The elimination or reduction of property taxes effectively increases your purchasing power. A 100 percent disabled veteran who would normally pay $6,725 per year in property taxes on a $250,000 home can redirect that money toward a higher mortgage payment, allowing them to afford a more expensive home or simply enjoy lower monthly housing costs. When combined with the VA home loan's zero down payment and no PMI requirements, disabled veterans have significant advantages in the El Paso real estate market.

If you need assistance with the application process, the El Paso County Veterans Service Office provides free help to all veterans regardless of discharge status. Their counselors can review your VA documentation, help you complete the forms, and even contact EPCAD on your behalf if issues arise. Many veterans find it helpful to visit the Veterans Service Office first to ensure all their paperwork is in order before submitting to EPCAD.

For veterans who prefer to handle everything from home, the EPCAD website offers online property search tools, downloadable forms, and contact information for their exemption department. You can also call EPCAD directly at (915) 780-2131 to speak with a staff member who can answer specific questions about your application status or eligibility.