Property tax exemptions for disabled veterans, VA healthcare access in Austin and San Antonio, and why the Austin-San Antonio corridor is one of the strongest military retiree markets in the country
Texas combines no state income tax on all military retirement pay with one of the most generous disabled veteran property tax exemption structures in the country. For 100% service-connected disabled veterans, Texas provides a complete property tax exemption on a primary residence — eliminating the $4,000–$10,000/year in property taxes that is the most common financial concern for buyers considering Texas communities.
San Antonio is also home to Joint Base San Antonio (JBSA) — the largest military installation in the world by population — giving the Austin-San Antonio corridor the largest active military and veteran community of any region covered by Nova55Living. Veterans moving to Kissing Tree in San Marcos (50 miles from JBSA) or Sun City Texas in Georgetown (50 miles from JBSA) maintain easy access to JBSA facilities, the Brooke Army Medical Center, and the deep veteran social community in the region.
| Disability Rating | Exemption Amount | Effect on $500K Home |
|---|---|---|
| 10–29% service-connected | $5,000 off appraised value | Modest reduction — ~$90–$110/yr savings |
| 30–49% service-connected | $7,500 off appraised value | ~$135–$165/yr savings |
| 50–69% service-connected | $10,000 off appraised value | ~$180–$210/yr savings |
| 70–99% service-connected | $12,000 off appraised value | ~$216–$252/yr savings |
| 100% service-connected (or TDIU) | FULL exemption — no property tax on primary residence | Saves $4,500–$10,000+/yr on all property taxes |
| Surviving spouse of 100% disabled vet | Full exemption maintained if not remarried, same property | Same as veteran during lifetime |
The 100% disabled veteran exemption is one of the most powerful financial benefits in any state for qualifying veterans. A veteran with a $500,000 Sun City Texas home pays $0 in property taxes as a primary resident — saving $4,500–$10,000/year that a non-veteran neighbor pays. Over 20 years, this represents $90,000–$200,000 in cumulative savings.
The Olin E. Teague Veterans' Medical Center in Temple (45 minutes from Georgetown/Sun City) is the primary VA medical center serving veterans in the Austin corridor. The Austin VA Outpatient Clinic provides primary care and select specialty services closer to the city. For Georgetown/Sun City residents, Temple is the nearest full-service VA facility.
The Audie L. Murphy VA Medical Center in San Antonio is one of the largest VA facilities in the country — 50–60 miles from Kissing Tree in San Marcos. San Antonio's status as a major military hub means the VA system there has exceptional staffing and specialty coverage. Veterans at Kissing Tree who are enrolled in VA healthcare have access to one of the most comprehensive VA systems in the South.
Eligible military retirees and their dependents can access care at BAMC — one of the DoD's premier medical centers and the only Level I trauma center in the DoD system. For veterans with TRICARE Prime Remote or TRICARE For Life, BAMC and associated JBSA facilities provide comprehensive care 50–60 miles from Kissing Tree.
Texas has no state income tax on military retirement pay. This means every dollar of military pension — whether 20-year career, disability retirement, or PDRL — is fully state-tax-exempt in Texas. For a military retiree receiving $40,000–$70,000/year in retirement pay, this is $1,600–$3,500/year in state income tax savings compared to a state with a 4–5% income tax rate.
Combined with the veteran property tax exemption (up to full exemption for 100% disabled), Texas provides one of the strongest combined benefit packages for military retirees of any state in the country.
File Form 50-135 (Disabled Veterans Exemption) with your county appraisal district — Williamson CAD for Georgetown/Sun City Texas, Hays CAD for San Marcos/Kissing Tree. Include your VA disability letter or rating decision confirming your service-connected disability rating. File by April 30 for the current tax year. The 100% exemption applies to your primary residence only — investment or rental properties do not qualify.
We can help you understand property tax exemptions and VA healthcare access for communities in both Williamson and Hays Counties.
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