It depends on your VA rating. If VA has awarded you 100% disability compensation with a 100% rating or individual unemployability, Texas Tax Code Section 11.131 exempts the full appraised value of your residence homestead, and that includes a brand-new build once you own it and live in it. Lower ratings, starting at 10%, get a smaller exemption of $5,000 to $12,000 off the appraised value under Section 11.22. Here’s how each one works in the year you close on a new build, and what to file.
Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
VA Loan & New Construction Specialist
Also see: VA Loans on New Construction | San Antonio Property Taxes | VA Loan Guide for Military Buyers
Who Qualifies for the 100% Disabled Veteran Exemption?
The Texas Comptroller lists three conditions for the total exemption under Tax Code Section 11.131:
- VA award: You receive 100% disability compensation for a service-connected disability
- Rating: VA rates you 100% disabled or individually unemployable
- Homestead: The home is your residence homestead, meaning you own it and live in it as your principal residence
The exemption covers the home’s full appraised value for every taxing unit on the bill. That includes the county, the school district, the city if you’re in city limits, and special districts. The 2025 bond disclosure for Kendall County WCID No. 3A, the water district for Corley Farms in Boerne, confirms that a veteran rated 100% is entitled to an exemption of the full homestead value from that district too. It does not cover HOA dues, which aren’t property taxes.
An unremarried surviving spouse of a veteran who qualified, or would have qualified, can generally keep the exemption under Section 11.131(c) and (d). On a later homestead, the Comptroller says the amount is capped at the dollar value of the exemption on the former home.
What If Your VA Rating Is Below 100%?
Section 11.22 gives a partial exemption from the appraised value of one property you choose. It doesn’t have to be your homestead, but most buyers put it on their home. The Comptroller lists these amounts:
| VA Disability Rating | Exemption From Appraised Value |
| 10% to 29% | $5,000 |
| 30% to 49% | $7,500 |
| 50% to 69% | $10,000 |
| 70% to 100% | $12,000 |
You also qualify for the $12,000 level if you’re 65 or older with a rating of at least 10%, totally blind in one or both eyes, or have lost the use of one or more limbs. These amounts stack with the general homestead exemption. For example, Kendall Appraisal District’s 2025 rate sheet shows Boerne ISD’s $140,000 homestead exemption alongside the $5,000 to $12,000 disabled veteran amounts.
How Does the Exemption Work in the Year You Close on a New Build?
Texas values property as of January 1. On a new build, that January 1 value often covers only the lot, or a partly built house, because the home wasn’t finished yet. You owe taxes on that value for the part of the year before you qualify.
Under Tax Code Section 11.42(e) and the Comptroller’s 100% disabled veteran FAQ, if you qualify after January 1, the total exemption applies right away for the portion of the year you own and live in the home as your homestead. If you’re moving from another homestead mid-year, the exemption starts on the new home when you qualify it, and tax is due for the part of the year before that.
Here’s what that usually looks like:
- At closing: The title company prorates the year’s taxes, so you and the builder each cover your share of the year
- Your first year: Your share should shrink once the exemption is approved for the months you’ve lived there
- The next January 1: The finished house is valued, and with a 100% exemption the homestead value stays exempt
How Do You Apply, and What Is the Deadline?
File with the appraisal district in the county where the home sits, such as Bexar Appraisal District, Kendall Appraisal District, or Comal Appraisal District. Don’t send it to the Comptroller.
- 100% exemption and general homestead: Form 50-114, the Residence Homestead Exemption Application
- Partial exemption: Form 50-135, the Disabled Veteran’s or Survivor’s Exemption Application
- Proof: Your VA letter showing your rating, plus a copy of your Texas driver’s license or ID with the property address. Form 50-114 says the chief appraiser may waive the address match for certain active duty members and spouses
- Deadline: Generally April 30 of the tax year. Disabled veterans may file a late application for the 11.131 exemption up to five years after the delinquency date
Once the exemption is granted, you generally don’t reapply each year unless the chief appraiser asks you to.
What Happens to Your Escrow After the Exemption Is Approved?
Your lender sets your first escrow payment before the exemption is on record, so the tax portion may be based on taxes you won’t owe. Once the appraisal district approves it, send the notice to your loan servicer and ask for an escrow analysis. Any change to your payment and any refund of a surplus follow the servicer’s escrow review.
Do Disabled Veterans Also Skip the VA Funding Fee?
Often, yes. VA lists these funding fee exemptions:
- Compensation: You receive VA compensation for a service-connected disability, or you’re eligible for it but receive retirement or active duty pay instead
- Pre-discharge rating: You’re on active duty and have a proposed or memorandum rating before closing, based on a pre-discharge claim
- Purple Heart: You’re on active duty and provide proof of a Purple Heart on or before closing
- Surviving spouse: You receive Dependency and Indemnity Compensation
If VA later awards compensation retroactive to before your closing date, you may be due a refund. On a first-use VA purchase with less than 5% down, the fee is 2.15% of the loan, so on a $400,000 loan that’s $8,600 you wouldn’t owe.
I cover what to ask a builder before you sign in 5 Questions You MUST Ask Before Buying a New Construction Home in San Antonio on my YouTube channel.
Frequently Asked Questions: Disabled Veteran Property Taxes on a New Build
Does the 100% disabled veteran exemption apply in the year I buy?
Yes, for the part of the year after you qualify. Under Texas Tax Code Section 11.42(e), a veteran who qualifies for the 100% exemption after January 1 gets it immediately for the applicable portion of that year. Taxes for the period before you owned and occupied the home are still due.
Do I have to reapply for the disabled veteran exemption every year?
Generally no. Once the appraisal district grants it, you don’t need to reapply each year unless the chief appraiser asks you to. You do need to apply again if you buy a new homestead.
Ready to Buy a New Build With Your VA Benefits?
Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran who has helped buyers and sellers close 120+ homes across the San Antonio metro. He helps veterans compare new construction communities, check the taxing units on a lot before signing, and line up a VA lender and title company that handle exemptions and prorations correctly.
- 📞 Call or text: 210-501-5088
- 📧 Email: [email protected]
- 📅 Schedule a free consultation
Also see: How to Use a VA Loan in San Antonio | Using Your VA Loan Again | Kendall County Property Taxes | Guadalupe County Property Taxes
Sources: Texas Comptroller, 100 Percent Disabled Veteran Exemption FAQ; Texas Comptroller, Disabled Veteran Exemption (Section 11.22) FAQ; Texas Comptroller, property tax exemptions; Texas Comptroller, Form 50-114; Texas Tax Code Chapter 11; Kendall Appraisal District, 2025 tax rates and exemptions; Kendall County WCID No. 3A, 2025 Official Statement; VA, funding fee and closing costs.