Texas
Military Benefits

Military Pay & State Income Tax, Texas Has None

Texas has no state income tax, full stop. Every dollar of military pay, retirement, disability, and survivor benefits is 100% free from state income tax.

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.

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.

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.

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.

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.

Texas has a business franchise tax (sometimes called a gross receipts tax) that applies to businesses. If you are a self-employed military spouse or veteran-owned small business in Texas, the franchise tax may apply above the $2.47 million revenue threshold (2024). Below that threshold, the effective rate is $0. Most military family businesses do not approach this threshold.

Property Tax Exemptions & Discounts

Texas has no income tax but does have relatively high property taxes, which is why the state's generous disabled veteran property tax exemptions are critically important for veteran homeowners.

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.

Veterans with partial VA disability ratings receive a sliding scale property tax exemption on their primary residence under Texas Tax Code § 11.22: 10 to 29% disability = $5,000 exemption; 30 to 49% = $7,500; 50 to 69% = $10,000; 70 to 99% = $12,000. While these are not as dramatic as the 100% exemption, they provide meaningful annual savings. Apply through your county appraisal district.

The surviving spouse of a 100% disabled veteran retains the full property tax exemption as long as 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.

To claim any veteran disability property tax exemption in Texas, you must file Form 50-135 (Residence Homestead Exemption Application) 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 Cavazos/Killeen): (254) 939-5841; El Paso County: (915) 780-2131.

Active duty servicemembers who own a home in Texas may claim the standard homestead exemption ($100,000 off school district appraised value as of 2023 legislation) on their primary Texas residence even if they are temporarily stationed elsewhere. This significantly reduces the school district portion of the property tax, the largest single component in most Texas jurisdictions.

Vehicle Registration & Driver's License

Texas offers free registration for 100% disabled veterans and strong SCRA protections, and no state income tax means the "car tax" burden many other states impose simply does not exist in Texas.

Texas Transportation Code § 502.253 provides that 100% disabled veterans (VA-rated) receive one free vehicle registration annually. The registration waiver covers the standard registration fee for one passenger vehicle or light truck. Apply through the Texas Department of Motor Vehicles (TxDMV) at your county tax assessor-collector's office with your VA award letter showing 100% rating.

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.

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.

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 online at txdps.state.tx.us, Texas DPS accepts online renewals for most license classes.

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.

Military Spouse Employment & Licensing

The Texas Military Spouse License Portability Act provides 30-day expedited license transfers, and with Texas's booming economy and no income tax, military spouses have strong career incentives here.

Texas Occupations Code Chapter 55A (effective 2021) requires Texas licensing authorities to issue a license to a qualifying military spouse within 30 days of receiving a complete application. The applicant must hold a valid license in another state for the same or substantially similar profession, be in good standing, and submit with the servicemember's current Texas orders. Covered professions include nursing, real estate, engineering, architecture, cosmetology, physical therapy, pharmacy, social work, teacher certification, and hundreds of others.

Texas Occupations Code § 55A.003 allows military spouses to apply for a temporary occupational license valid for one year (renewable once) while the full reciprocity license is processed. The temporary license authorizes full practice rights in the profession. This eliminates income gaps during Texas PCS arrivals, critically important for spouses in high-demand fields like nursing and teaching.

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.

The Texas Education Agency (TEA) participates in the Military Spouse License Portability Act for teacher certification. Military spouses holding a valid teaching certificate in another state can receive a Texas Standard Certificate through the expedited process. Texas has significant teacher demand, especially near large installations in San Antonio, Killeen, and El Paso. Contact TEA Educator Certification at (512) 463-9734.

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.

SCRA, Federal Protections That Apply in Texas

Texas courts and landlords must honor all federal SCRA protections. Texas has a large, experienced JAG network across its many installations.

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.

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.

Texas courts cannot foreclose on a servicemember's primary residence during active duty or for 9 months 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.

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 $4,036.20/month in 2024). JP (Justice of the Peace) courts in Texas counties near installations are experienced with military eviction stays.

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.

Education Benefits in Texas, Hazlewood Act & More

Texas offers one of the most powerful veteran education benefits in the nation: the Hazlewood Act provides free tuition at Texas public colleges for veterans AND their dependents through the Legacy Benefit.

The Texas Hazlewood Act (Texas Education Code § 54.341) provides eligible veterans with up to 150 credit hours of free tuition and fees at Texas public colleges and universities, including UT Austin, Texas A&M, Texas Tech, UTSA, UT El Paso, and all 50 Texas community college districts. To qualify: you must be a Texas resident, have served in the U.S. Armed Forces (including Guard and Reserve), have been honorably discharged or released, and not be in default on any federal student loan. This is one of the most generous veteran education benefits in the nation.

The Hazlewood Act Legacy Benefit (Texas Education Code § 54.341(k) to (r)) allows eligible veterans to transfer unused Hazlewood hours to their dependent children. The child must be a Texas resident, under age 25 (or enrolled before age 25 if the veteran died in service), and the veteran must have lived in Texas for at least the 12 months before filing. This is an enormous benefit for military families retiring to or retiring in Texas, children of veterans can attend any Texas public university tuition-free. Unused hours can be split across multiple children.

Active duty servicemembers stationed in Texas, their spouses, and dependents are immediately eligible for in-state tuition at Texas public colleges and universities under Texas Education Code § 54.058. No 12-month waiting period. In-state tuition in Texas averages $9,000 to $12,000 per year at major universities, significantly below the $25,000 to $40,000 out-of-state rate. Combined with GI Bill benefits, most active duty families pay nothing out of pocket.

The Texas Veterans Land Board (VLB) offers below-market-rate home improvement loans that can include energy efficiency upgrades benefiting families with veterans attending school. See the Texas Veterans Land Board section below for full details on VLB programs, the land, home, and home improvement loan programs can free up cash flow for education expenses.

All Texas public universities and most private universities participate in GI Bill. Major Yellow Ribbon participants include Rice University, Baylor University, TCU, SMU, and Texas Christian University. Combined with the Hazlewood Act at public schools (which can cover costs the GI Bill does not), most eligible Texas veterans attend public universities at little to no out-of-pocket cost.

Texas Veterans Land Board, Land, Home & Loan Programs

The Texas Veterans Land Board (VLB) is one of the oldest and best-funded state veterans benefit programs in the nation, offering below-market land, home, and home improvement loans exclusively for Texas veterans.

The Texas Veterans Land Board Home Loan Program provides 30-year fixed-rate mortgages at below-market interest rates to Texas veterans purchasing their primary residence anywhere in Texas. The interest rate is set by the VLB and is typically 0.25% to 0.75% below conventional rates at any given time. Loan amounts up to conforming loan limits (currently $766,550 in most TX counties; higher in high-cost counties). This is separate from and can be stacked with VA Loan benefits, veterans can use VLB for below-rate financing and VA guaranty for zero down payment. Contact VLB at (800) 252-8387.

The VLB Land Loan Program allows Texas veterans to purchase undeveloped land anywhere in Texas with below-market interest rates. Minimum 5 acres, maximum loan amount of $150,000. 30-year term with fixed rates. Texas has millions of acres of rural land near Fort Cavazos, Fort Bliss, and other installations, the land loan program makes purchase accessible for veterans looking to own property outside of urban areas. This is a unique program, most states do not offer dedicated land purchase loan programs for veterans.

The VLB Home Improvement Loan Program provides loans up to $50,000 for improvements to a primary residence owned by a Texas veteran. Interest rates are below market. Terms up to 20 years. Eligible improvements include roofing, HVAC, accessibility modifications, additions, and energy efficiency upgrades. For veterans adapting their home for service-connected disabilities, this loan can supplement VA's Specially Adapted Housing (SAH) grant. Apply at vlb.texas.gov.

To use VLB programs, you must be a Texas resident at the time of application, have served on active duty in the U.S. Armed Forces (including Guard and Reserve with federal activation), and have been honorably discharged or currently serving. You must not have previously defaulted on a VLB loan. Texas residency can be established by active duty servicemembers stationed in Texas, you do not need to have lived in Texas prior to your PCS orders.

The VLB operates seven state veterans cemeteries across Texas at no cost to eligible veterans and their dependents. This is a final benefit worth noting for military retirees settling in Texas, burial in a VLB state veterans cemetery is free for all eligible Texas veterans and their spouses.

Private Schools, Vouchers & School Choice

Texas signed a landmark ESA+ school choice bill in 2023, up to $10,900 per student per year for private school. Combined with the Hazlewood Act for higher ed, Texas is rapidly becoming the top state for military family education benefits.

Governor Abbott signed HB 1 (Texas ESA+) into law in November 2023, one of the most significant school choice expansions in the nation. The program provides Education Savings Accounts (ESAs) of up to $10,900 per student per year for K to 12 students who withdraw from public school to attend private school or be homeschooled. Military families stationed in Texas qualify immediately under the same residency rules as in-state tuition. Funds are distributed quarterly and can be used for tuition, fees, tutoring, curriculum materials, and certain educational therapies. The program launched with a priority enrollment window for students with disabilities.

Texas ESA+ provides additional funding for students with disabilities, students with an IEP or 504 plan may receive a higher ESA award, potentially up to $11,500 or more depending on disability category. EFMP-enrolled military families whose child has an IEP should apply for ESA+ immediately upon arriving in Texas, the disability-priority enrollment window has historically moved faster than the general waitlist. Apply at texaseducationagency.gov.

Texas has one of the largest and most diverse charter school sectors in the nation, with over 900 charter campuses. Major charter networks include KIPP Texas (San Antonio, Dallas, Houston), YES Prep (Houston), Harmony Public Schools (statewide, 65+ campuses), and Great Hearts (San Antonio, Dallas area). Charter schools are tuition-free public schools, no voucher or ESA application required. MIC4 enrollment protections apply. Military families often use charters as a bridge option while permanent school placement is arranged.

Texas is a member of the Interstate Compact on Educational Opportunity for Military Children (MIC4). Public schools must honor MIC4 enrollment timing, immunization grace periods, credit transfer, and athletic eligibility protections. Many Texas private schools near installations, especially in San Antonio, Killeen, and El Paso, informally honor MIC4 enrollment flexibility for military families. Present PCS orders to both public and private school admissions offices early.

San Antonio (Fort Sam Houston, Lackland, Randolph): Central Catholic High School, Antonian College Prep, Providence Catholic School, and Cornerstone Church Academy. Killeen/Fort Cavazos 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.

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.

Voting & Residency Rights

Texas has no income tax, which makes establishing Texas domicile financially attractive for servicemembers from high-tax states. Here's how residency and voting rights work.

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.

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.

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.

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.