Texas
Military Benefits

Military pay

Active duty · all taxable military pay

Texas is one of nine states with no state income tax. This applies to 100% of your military base pay, special pays, allowances that are taxable at the federal level, bonuses, and reenlistment bonuses. There is no form to file, no exemption to claim, no threshold to hit, Texas simply does not tax income. For an E-7 with 12 years of service, this can be worth $2,000 to $4,000 per year compared to states with a 4 to 6% income tax rate.

Nothing to file in Texas

Military retirement

Retirees · CRSC and CRDP included

Military retirement pay, including retired pay, Combat-Related Special Compensation (CRSC), and Concurrent Retirement and Disability Pay (CRDP), is fully exempt from Texas state tax because Texas has no income tax. Retirees drawing a full colonel's or senior NCO retirement can save $5,000 to $12,000 per year compared to high-tax states. This is a major reason Texas is consistently ranked among the top states for military retirees.

No Texas return on retired pay

VA disability

Veterans · 10% through 100%

VA disability compensation, whether at 10% or 100%, is not subject to any Texas state income tax. Combined with the federal exemption, disabled veterans in Texas pay zero income tax on their disability payments at any level of government.

Automatic with federal exemption

SBP annuity

Surviving spouses and dependents

Survivor Benefit Plan (SBP) annuity payments to surviving spouses and dependents are not subject to Texas state income tax. Surviving military spouses in Texas keep 100% of their SBP annuity, no state income tax withheld, no state return required.

No Texas withholding

Spouse wages

Working spouses · any domicile election

Military spouses who work in Texas, whether maintaining another-state domicile under VBTA 2018 or establishing Texas domicile, pay no Texas income tax on their wages because no such tax exists. Spouses with high-earning careers (medical, law, engineering, tech) see the most financial benefit from this during Texas tours.

Automatic while working in Texas

Franchise tax

Business owners, not W-2 employees

Texas has a business franchise tax (sometimes called a margin tax) that applies to taxable entities, not to W-2 employees. For the 2026 report year, the no-tax-due threshold is $2.65 million in annualized total revenue (up from $2.47 million). Below that threshold you owe $0 franchise tax, though you may still need to file a Public Information Report. New veteran-owned businesses that qualify under Texas Tax Code § 171.0005 are not required to file franchise tax reports for their first five years.

Veterans: 5-year filing break if you qualify

100% disabled homestead

100% schedular or IU · primary residence

Texas Constitution Article VIII, § 1-b and Texas Tax Code § 11.131 provide a complete property tax exemption on the primary residence (homestead) for veterans with a 100% VA disability rating, either 100% schedular or Individual Unemployability (IU). This exemption applies to all local property taxes including school district, county, city, and special district levies. On a $350,000 home with a 2.3% combined tax rate, this saves approximately $8,050 per year.

File 50-114 and 50-135 with your county

Partial disability

10–99% VA rating · homestead

Veterans with partial VA disability ratings receive a sliding-scale exemption on their primary residence under Texas Tax Code § 11.22: 10 to 29% disability = $5,000; 30 to 49% = $7,500; 50 to 69% = $10,000; 70 to 99% = $12,000. A veteran age 65 or older with at least a 10% rating qualifies for the $12,000 amount. These reduce taxable value rather than wiping out the bill. Apply through your county appraisal district.

Apply at the county appraisal district

Surviving spouse

Unremarried spouse still in the home

The surviving spouse of a 100% disabled veteran retains the full homestead exemption if the property was the couple's primary residence at the time of the veteran's death, the spouse has not remarried, and the spouse continues to occupy the property as their primary residence. Texas Tax Code § 11.131(c) protects surviving spouses explicitly. Separately, Tax Code § 11.133 gives the surviving spouse of a servicemember killed or fatally injured in the line of duty a 100% homestead exemption, and that dollar amount can transfer to a later homestead if the spouse has not remarried.

File with the county · KIA uses § 11.133

How to claim it

Veteran and survivor homeowners

To claim any veteran disability property tax exemption in Texas, file Form 50-114 (Residence Homestead) and Form 50-135 (Disabled Veteran's or Survivor's Exemption) with your county appraisal district. Bring your VA award letter showing your disability rating and your Texas ID or driver's license. Applications are processed by the county. Major military county offices include Bexar County (San Antonio): (210) 224-8511; Bell County (Fort Hood/Killeen): (254) 939-5841; El Paso County: (915) 780-2131.

Standard homestead

Any Texas primary residence

Every Texas homeowner who occupies the property as a primary residence may claim the general homestead exemption. Proposition 13 (November 2025) raised the mandatory school-district exemption from $100,000 to $140,000, effective for the 2026 tax year. Homeowners 65 or older or disabled get an additional $60,000 off school taxes, for $200,000 total. Active duty owners may keep the homestead on a Texas primary residence even if temporarily stationed elsewhere. The $140,000 cut applies only to the school-district portion of the bill, typically the largest slice, not automatically to city, county, or MUD taxes.

Claim homestead · +$60,000 if 65+ or disabled

Registration fee

50%+ disability · or 40% lower-extremity amputation

Texas Transportation Code § 504.202 lets a veteran with a 50% or greater service-connected disability (or 40% due to lower-extremity amputation) register one owned vehicle of 18,000 pounds or less with no registration fee, other than the plate fee. This is not limited to a 100% rating. Apply at your county tax assessor-collector with your VA award letter. The Disabled Veteran plate includes the letters "DV."

County tax office with your VA award letter

Veteran plates

DV, Purple Heart, Medal of Honor, and related plates

Texas offers several specialty disabled veteran license plates at no annual fee for qualifying veterans, including "Disabled Veteran," "Pearl Harbor Survivor," "Purple Heart," "Medal of Honor," and "Legion of Valor" plates. Apply at your county tax assessor-collector with documentation of the qualifying award or disability. Specialty plates with logos or symbols beyond the standard veteran designs may carry a small one-time fee.

Apply at the county tax assessor-collector

Keep home-state plates

Active duty stationed in Texas

Active duty servicemembers stationed in Texas are not required to register their vehicle in Texas under SCRA. Home-state plates and registration remain valid for the duration of your orders. Texas DPS and law enforcement honor SCRA, present orders with home-state registration if questioned. Texas does not have a personal property tax on vehicles, so there is no hidden tax liability for keeping out-of-state registration.

Carry orders with home-state registration

Driver’s license

Active duty and dependents

Texas driver's licenses for active duty servicemembers and their dependents are extended while on active duty orders. A Texas license that expires during active duty remains valid for up to two years from the expiration date or upon return from active duty, whichever is first. Renew at dps.texas.gov. Separately, Transportation Code § 521.426 waives driver's license and ID fees for veterans with a 60% or greater service-connected disability who receive VA compensation.

State hiring preference

Veterans and surviving spouses

Texas Government Code § 657.003 provides a hiring preference for veterans and surviving spouses of veterans in Texas state government employment. Qualified veterans are given preference points in the hiring process. This applies to most state agency positions and some local government roles. For transitioning servicemembers looking at civilian careers in Texas, state employment preference is a meaningful advantage.

Claim it on the state job application

Practice on your current license

Military spouses and the servicemember

Texas Occupations Code § 55.0041 lets a military spouse (and the servicemember) practice in Texas without obtaining a Texas license if they hold a current license in good standing from a jurisdiction with substantially equivalent requirements. The agency must verify that status within 30 days of receiving the required documents. Practice is allowed for the period the member is stationed in Texas, not to exceed three years from confirmation. Covered professions include nursing, real estate, engineering, architecture, cosmetology, physical therapy, pharmacy, social work, teaching, and hundreds of others.

Board verifies in 30 days · Occupations Code § 55.0041

Texas license

Military spouses who want a full Texas credential

If you want a full Texas license instead of (or after) the 55.0041 recognition, Occupations Code § 55.005 requires the licensing agency to issue the license within 30 days of a complete application under the alternative-licensing rules in § 55.004. The license must confer the same rights as any other Texas license, not a lesser provisional credential. Agencies may not charge extra fees for military-spouse issuance under § 55.0041.

Unemployment after PCS

Spouses who leave a job to follow orders

Texas Labor Code § 207.045 provides that military spouses who leave employment to accompany their servicemember on a PCS move are eligible for Texas unemployment benefits. They are not considered to have voluntarily quit without good cause. File a claim through the Texas Workforce Commission at twc.texas.gov within 30 days of job separation.

Teacher certification

Spouses with a valid out-of-state certificate

The Texas Education Agency processes military-spouse teacher certification under Occupations Code Chapter 55. Military spouses holding a valid teaching certificate in another state can receive expedited Texas certification. Texas has significant teacher demand, especially near San Antonio, Killeen, and El Paso. Contact TEA Educator Certification at (512) 463-9734.

Spouse paycheck

Working spouses in Texas

Regardless of domicile election under VBTA 2018, military spouses who work in Texas pay no Texas income tax on their earnings, because no such tax exists. A military spouse earning $75,000/year saves approximately $3,750 to $4,500 compared to a state with a 5 to 6% income tax rate. Combined with Texas's strong job market, this makes Texas one of the most financially favorable states for dual-income military families.

Automatic · no extra form

Break a Texas lease

PCS orders or 90+ day deployment

You can terminate any Texas residential lease with 30 days' written notice after receiving PCS orders or a deployment of 90+ days. Deliver written notice and a copy of orders to the landlord. Termination is effective 30 days after the next rent due date. Texas landlords cannot charge early termination fees to servicemembers exercising SCRA rights, any such clause in a Texas lease is unenforceable against active duty servicemembers.

Written notice + orders · no early-termination fee

Pre-service debt

Active duty · debt from before service

Debt incurred before entering active duty, mortgage, car loan, credit card, student loan, must be reduced to 6% interest upon written request with a copy of orders. Submit by certified mail. The excess above 6% is forgiven, not deferred. Texas lenders near installations (Killeen, San Antonio, El Paso, Fort Worth) are generally familiar with this requirement. JAG offices can write demand letters on your behalf if a lender refuses.

Certified mail with orders · excess interest is forgiven

Foreclosure stay

Active duty homeowners

Texas courts cannot foreclose on a servicemember's primary residence during active duty or for 1 year after separation without a court order. Texas uses a non-judicial (deed of trust) foreclosure process by default, SCRA forces any foreclosure involving an active duty servicemember through the judicial process instead, providing substantially more time and opportunity to respond.

Eviction stay

Active duty families · rent under ~$10,542.60/mo

Texas landlords cannot evict an active duty servicemember or their family from a primary residence without a court order while on active duty. The protection applies when rent is under the SCRA threshold (approximately $10,542.60/month in 2026). JP (Justice of the Peace) courts in Texas counties near installations are experienced with military eviction stays.

JP court cannot evict without a hearing

Civil court stay

Active duty who cannot appear

Texas courts must grant at least a 90-day stay of civil proceedings when a servicemember cannot appear due to military duties. This applies to JP courts, county courts, and district courts. Courts cannot enter a default judgment against an active duty servicemember without appointing an attorney to represent their interests at the court's expense.

Tell the court · no default without an appointed attorney

Hazlewood tuition

Texas connection at entry + live in Texas now

The Texas Hazlewood Act (Texas Education Code § 54.341) provides eligible veterans with up to 150 semester credit hours of tuition and most required fees at Texas public colleges and universities, including UT Austin, Texas A&M, Texas Tech, UTSA, UT El Paso, and Texas community colleges. It does not cover books, living expenses, or most supply fees. To qualify, a veteran must currently reside in Texas and, at the time of entry into active duty, have been a Texas resident, entered service in Texas, or designated Texas as Home of Record. Honorable or general-under-honorable discharge, at least 181 days of active duty (excluding training), and not being in default on a student loan also apply. Simply PCSing to Texas later does not, by itself, create Hazlewood eligibility.

Hazlewood Legacy

Child is a Texas resident · generally through age 25

The Hazlewood Legacy Benefit (Texas Education Code § 54.341) lets an eligible veteran assign unused Hazlewood hours to a child. The child must be classified as a Texas resident by the institution and is generally eligible through age 25. Hours can be split across more than one child. The veteran still has to meet the entry-into-service Texas connection (Home of Record, entered in Texas, or Texas resident at entry) and currently reside in Texas, unless out of state solely on military orders. Confirm current Legacy rules with the Texas Veterans Commission at tvc.texas.gov/education/hazlewood/.

In-state tuition

Active duty assigned to Texas, spouses, and children

Active duty servicemembers assigned to duty in Texas, their spouses, and children are entitled to resident tuition and fees at Texas public colleges and universities under Texas Education Code § 54.241, with no waiting period. Honorably discharged veterans who move to Texas, and their spouses and dependents, can also qualify for resident rates by filing a letter of intent to establish Texas residency. In-state tuition at major Texas universities is typically far below out-of-state rates. Combined with GI Bill, many active duty families pay little or nothing out of pocket.

Education Code § 54.241 · tell the registrar

Stack with GI Bill

Chapter 33 or VR&E students

You may stack Hazlewood with federal veteran education benefits. If you use a federal program that pays tuition and fees (Post-9/11 GI Bill Chapter 33 or VR&E Chapter 31), those federal dollars apply first. Hazlewood then covers remaining eligible tuition and fees, and the combined total cannot exceed 100% of tuition and fees for the term. Bring a VA Certificate of Eligibility when you apply. Hazlewood still does not pay for room, board, or books.

Federal dollars first · bring your COE

GI Bill + Yellow Ribbon

Private-school students using Chapter 33

All Texas public universities and most private universities participate in GI Bill. Major Yellow Ribbon participants include Rice University, Baylor University, TCU (Texas Christian University), and SMU. Combined with Hazlewood at public schools for remaining tuition after Chapter 33, many eligible Texas veterans attend public universities at little or no out-of-pocket cost for tuition.

School VA certifying official

VLB home loan

Texas resident veterans · 30%+ DV rate discount

The Texas Veterans Land Board Home Loan Program (Veterans Housing Assistance Program) provides fixed-rate first-lien mortgages to eligible Texas veterans and military members buying a primary residence in Texas. As of 2026 the maximum loan amount is $832,750, with 15, 20, 25, or 30 year terms. Veterans with a VA service-connected disability rating of 30% or greater still qualify for a discounted VLB interest rate. VLB does not refinance existing mortgages and does not provide a down-payment grant. You can pair a VLB loan with a VA-backed loan through a participating lender for little or no down payment and no PMI. Contact VLB at (800) 252-8387.

VLB land loan

1 net acre in Texas · 5% down typical

The VLB Land Loan Program is unique among the states. Eligible Texas veterans and military members can borrow up to $200,000 to buy land in Texas, typically with 5% down, on a fixed-rate 30-year term. Two eligible veteran spouses buying the same tract can borrow up to $275,000. The tract must be entirely in Texas and at least one net acre (not five acres). Limits rose to these amounts in February 2026. The land cannot be for commercial use. This is a separate loan from the VLB home loan, you can have one active land loan and one active home loan at the same time.

Home improvement loan

Existing loans continue · home and land still open

The VLB Home Improvement Loan has historically financed up to $50,000 in primary-residence improvements (roofing, HVAC, accessibility, additions) on terms of 2 to 20 years, and could supplement a VA Specially Adapted Housing grant. Effective April 30, 2026, the Veterans Land Board placed a temporary moratorium on new home-improvement applications while it reviews program rules. Existing loans already funded or in process continue. Home and land loans are not affected. Confirm current status at glo.texas.gov/veterans before planning a project around this product.

Who can use VLB

18+ · currently serving or qualifying veteran

To use VLB programs you must be a bona fide Texas resident at application, at least 18, and either currently serving or a veteran with qualifying service (generally 90 days of active duty unless discharged sooner for disability, or Guard/Reserve with 20 qualifying years). Character of service must be honorable, general, or medical. You cannot have a prior VLB default. Active duty members stationed in Texas can establish residency with orders, you do not need to have lived in Texas before this PCS.

Stationed in Texas counts · you do not need prior Texas years

State veterans cemeteries

Eligible veterans, spouses, and dependent children

The VLB currently operates four Texas State Veterans Cemeteries, in Killeen (Central Texas), Corpus Christi (Coastal Bend), Mission (Rio Grande Valley), and Abilene, with a fifth cemetery in Lubbock (West Texas) scheduled to open in 2026. Burial is at no charge for eligible veterans, spouses, and dependent children. Texas also has VA national cemeteries in Dallas-Fort Worth, San Antonio (Fort Sam Houston), Houston, and El Paso (Fort Bliss).

4 open now · Lubbock opens 2026

TEFA private school

Approved private-school students · $1B biennium cap

Governor Abbott signed Senate Bill 2 in 2025, creating Texas's first Education Savings Account program. The Texas Comptroller administers it as Texas Education Freedom Accounts (TEFA), with Odyssey as the certified educational assistance organization. School choice did not pass in 2023. For 2026-27, TEA set the private-school award at $10,474 (85% of statewide average state and local funding per student). Homeschool participants are capped at $2,000. Funds pay approved expenses such as tuition, fees, tutoring, curriculum, and certain therapies through the program marketplace. The first biennium is capped at $1 billion, so an award is not automatic.

TEFA disability award

Students with disabilities · then lower-income households

Students with disabilities can receive the base award plus their special-education allotment, capped at $30,000 per year under SB 2. When applications exceed funding, statute prioritizes students with disabilities and lower-income households (up to 500% of the federal poverty level) before remaining seats. The 2026-27 application window ran February 4 through March 31, 2026, and is now closed. Sign up for 2027-28 notices at educationfreedom.texas.gov. EFMP families should keep the current IEP ready, TEA used the APEX-ESA system for IEP uploads during the 2026 window.

Charter schools

No TEFA application needed

Texas has one of the largest charter sectors in the nation, with hundreds of campuses. Major networks include KIPP Texas (San Antonio, Dallas, Houston), YES Prep (Houston), Harmony Public Schools (statewide), and Great Hearts (San Antonio and Dallas area). Charter schools are tuition-free public schools, no TEFA application required. MIC3 enrollment protections apply. Military families often use charters as a bridge while permanent school placement is arranged.

Apply to the campus · MIC3 still applies

MIC3 compact

Military children in public schools

Texas is a member of the Interstate Compact on Educational Opportunity for Military Children, administered by the Military Interstate Children's Compact Commission (MIC3). Public schools must honor compact rules on enrollment timing, immunization grace periods, credit transfer, and athletic eligibility. Many private schools near San Antonio, Killeen, and El Paso informally follow the same flexibility. Present PCS orders to admissions offices early.

Hand PCS orders to the registrar early

Private schools near bases

Families using TEFA or paying tuition

San Antonio (Fort Sam Houston, Lackland, Randolph): Central Catholic High School, Antonian College Prep, Providence Catholic School, and Cornerstone Church Academy. Killeen/Fort Hood area: multiple faith-based K to 12 schools. El Paso/Fort Bliss: Sacred Heart Academy, Cathedral High School, and Loretto Academy. Fort Worth (NAS JRB): Fort Worth Christian, Trinity Valley School, and All Saints Episcopal School. Most of these schools have established military family enrollment processes given the installation proximity.

Call admissions with orders in hand

Homeschool

Families on a short tour or mid-year PCS

Texas homeschool law (Leeper v. Arlington ISD) places virtually no state oversight requirements on homeschooling families. No registration required, no testing mandates, no curriculum approval process. Military families choosing to homeschool in Texas during a short tour or difficult PCS transition have full legal protection to do so without bureaucratic barriers. Texas also has a robust homeschool co-op network near every major installation, including faith-based and secular options.

Legal under Leeper · $2,000 TEFA homeschool cap if awarded

Keep your home-state vote

Stationed in Texas, domicile elsewhere

Being stationed in Texas does not change your legal domicile. You may continue to vote in your home state via absentee ballot under UOCAVA. Submit a Federal Post Card Application (FPCA) at FVAP.gov. Your installation's Voting Assistance Officer (VAO) can help you complete and submit the FPCA at no charge.

Switch to Texas domicile

Servicemembers leaving a high-tax home state

If you want to vote in Texas and claim it as your home state, register at votetexas.gov. Given Texas has no income tax, changing domicile to Texas from a high-tax state (California, New York, New Jersey, Maryland) can result in immediate and permanent tax savings. The domicile change requires: obtaining a Texas driver's license or ID, registering your vehicle in Texas (if you choose), and maintaining a physical Texas address. Your JAG office can provide a domicile change counseling appointment.

Spouse domicile

Spouses under VBTA 2018

Military spouses may independently choose Texas as their domicile under VBTA 2018, even if the servicemember maintains a different home state. Given Texas has no income tax, a military spouse choosing Texas domicile never owes state income tax on their wages in any state they subsequently live in while following their servicemember on orders.

Choose Texas even if the member stays elsewhere

Vote while deployed

UOCAVA voters · Texas accepts electronic ballots

Texas accepts the FPCA as a combined registration and absentee ballot request for deployed servicemembers. Ballots are transmitted electronically to UOCAVA voters. Texas accepts fax return of ballots from overseas voters. Request your ballot at least 45 days before any election. Texas Secretary of State Voter Assistance: (800) 252-8683.