90% Disabled Veteran Benefits in Texas: Tax, Tuition, and TDIU

A veteran with a 90% VA disability rating in Texas qualifies for a substantial package of state and federal benefits, though several of the largest state benefits, including a total property tax exemption, remain reserved for veterans rated at 100% or approved for Total Disability Individual Unemployability. The 90 percent disabled veteran benefits in Texas cover monthly tax-free compensation, no-cost VA healthcare, a partial homestead property tax exemption, free vehicle registration, toll and license fee waivers, discounted state home loans, free hunting and fishing licenses, state park entry, tuition under the Hazlewood Act, and state hiring preference.

Monthly VA Disability Compensation at 90%

Compensation is tax-free and paid monthly, with the amount scaled to dependents. As of December 2025, the base rate for a 90%-rated veteran with no dependents is $2,362.30. A veteran with a spouse and no children receives $2,559.30, and a veteran with a spouse and one child receives roughly $2,704.¹ Each additional child under 18 adds about $98 per month, and each school-age child over 18 adds roughly $317. A spouse who qualifies for Aid and Attendance adds another $181.²

Texas Property Tax Exemption at 90%

Under Texas Tax Code Section 11.22, a 90% rating falls into the 70% to 99% bracket, which reduces the taxable value of the veteran’s homestead by $12,000.³ On a home appraised at $300,000, taxes are calculated on $288,000 rather than the full value. Veterans aged 65 or older with at least a 10% rating, and those who are blind or have lost the use of a limb, also receive the $12,000 exemption regardless of their specific percentage.⁴

This is a meaningful gap from what a 100%-rated veteran receives. Tax Code Section 11.131 exempts the homestead of a 100%-rated (or TDIU) veteran from all property taxes.⁵

How to Claim the Exemption

File Form 50-135 with the appraisal district in the county where the property is located. Attach a copy of the veteran’s driver’s license or state ID and official VA documentation showing the disability percentage.⁴ The filing window is January 1 through April 30, with late applications accepted up to one year after the tax delinquency date. Once granted, the exemption generally does not require annual renewal unless ownership or qualification changes.⁶

Interest-Free Installment Plan

Veterans who qualify for the Section 11.22 exemption may pay their homestead property taxes in four equal, interest-free installments under Tax Code Section 31.031. Submit written notice of intent to pay by installment with the first payment before the delinquency date (typically February 1). The remaining payments are due before April 1, June 1, and August 1.⁷ A missed installment triggers a 6% penalty plus 1% interest per month on the unpaid balance.

VA Healthcare and the Dental Gap

A 90% service-connected rating places a veteran in VA Priority Group 1, the top enrollment tier.⁸ Care and prescriptions are provided at no cost, with no enrollment fees, premiums, or deductibles. Outpatient copayments are waived for any service-connected rating of 10% or higher. The first three urgent care visits per calendar year cost nothing; from the fourth visit forward, a $30 copayment applies.⁹

Dental is the notable exception. Comprehensive VA dental under Class IV requires a 100% rating or TDIU, so a 90%-rated veteran does not automatically qualify unless a separate service-connected dental condition or another specific eligibility class applies.¹⁰ Reduced-cost coverage is available for purchase through the VA Dental Insurance Program (VADIP).

Vehicle Registration, Plates, and Parking

Texas Transportation Code Section 504.202 lets a veteran with a service-connected disability of at least 50% who receives federal compensation register one personal vehicle with no registration fee. The first set of Disabled Veteran specialty license plates costs $3, and any additional sets are free.¹¹ The vehicle must be owned by the veteran and weigh 18,000 pounds or less, or be a motor home. Standard registration and local fees apply to any additional vehicles.¹²

Vehicles displaying DV plates also park free at meters operated by non-federal governmental authorities.¹³

Toll Road Waivers

Vehicles with Disabled Veteran plates travel free on TxDOT-managed toll roads under the TxDOT Veterans Discount Program, in effect since 2012. Eligible roads run through the Austin, Houston, and Dallas-Fort Worth regions and include portions of SH 130, the SH 99 Grand Parkway, and select TEXpress lanes. Privately managed facilities such as the LBJ TEXpress and North Tarrant Express lanes are not covered.¹⁴

Regional authorities run their own programs. The Central Texas Regional Mobility Authority, for example, allows DV-plated vehicles to use roads such as the 183A Toll, 290 Toll, and 45SW Toll for free, but excludes demand-priced express lanes. Enrollment is not automatic; the veteran must register and display a properly installed electronic toll tag.¹⁵

Driver’s License Fee Waiver

Texas waives driver’s license and state ID card fees for honorably discharged veterans with a service-related disability of at least 60% who receive federal compensation for the disability. Commercial driver’s licenses are not covered. Adding the “Veteran” designation does not trigger a duplicate license fee.¹⁶ Bring a signed VA disability status letter or equivalent official documentation to a driver’s license office.

Discounted VLB Home and Home Improvement Loans

The Texas Veterans Land Board offers loan programs to Texas veterans regardless of rating, but a service-connected rating of 30% or higher lowers the interest rate.

The Veterans Housing Assistance Program provides fixed-rate loans up to $832,750 with terms of 15 to 30 years for a primary Texas residence. The standard rate is 5.9%, and the discounted rate at 30%+ disability is 5.4%.¹⁷ The veteran must occupy the property within 60 days of closing and keep it as a primary residence for at least three years.

The Veterans Home Improvement Program lends up to $50,000 for repairs and improvements on an existing primary residence. The standard rate is 6.35%, dropping to 5.85% at 30%+ disability, with no down payment required.¹⁸ The VLB also runs a land loan program with below-market rates and a 5% minimum down payment; whether the disability discount applies to that specific program is not confirmed here.¹⁹

Hunting, Fishing, and State Parks

At 50% or higher, a Texas veteran can obtain the free Disabled Veteran Super Combo Hunting and All-Water Fishing Package from Texas Parks and Wildlife. It bundles resident hunting and fishing licenses with endorsements for archery, freshwater fishing, saltwater fishing (including a red drum tag), upland game birds, and migratory game birds. The Federal Duck Stamp is not included.²⁰ Pick it up in person at a license retailer with VA proof of disability issued within the last 12 months, or a Texas driver’s license carrying the Disabled Veteran designation.

A 60% or greater service-connected rating also earns the Disabled Veterans Parklands Passport, which gives the veteran and one companion free entry to Texas state parks. Present valid photo ID at any state park along with a VA award letter, DV plate receipt, or tax exemption letter.²¹

Hazlewood Act Tuition

The Hazlewood Act exempts eligible Texas veterans from tuition and most fees for up to 150 credit hours at Texas public colleges and universities. It does not cover living expenses, books, or supply fees. Eligibility requires at least 181 days of active-duty service (excluding training), an honorable or general discharge, a Texas connection at entry into service, and current Texas residency.²²

A 90% rating does not affect the veteran’s own eligibility, but it changes what dependents can receive. Only veterans rated 100% permanently and totally disabled (or approved for TDIU) can qualify their spouse and children for independent 150-hour exemptions with no age limit. At 90%, a veteran can still transfer unused hours to one child through the Hazlewood Legacy program, but that child must be 25 or younger, and only one child at a time may use the benefit.²²

State Employment Preference

Chapter 657 of the Texas Government Code gives veterans preference for state agency jobs. When a position has six or fewer interviewees, at least one must be a qualified veteran. When more than six are interviewed, at least 20% must be qualified veterans. Between two finalists who are equally qualified, the veteran gets the offer.²³ The preference does not guarantee an interview or a hire, and applicants must meet the position’s minimum qualifications.

The preference extends to spouses of veterans with a total disability rating of at least 70% (or individual unemployability) when the spouse is the primary source of household income.²⁴

License to Carry Discount

Honorably discharged veterans pay $25 for a Texas License to Carry a handgun rather than the standard $40 fee. Disability rating does not affect eligibility for this discount.²⁵

What 90% Does Not Get You

Several significant benefits sit behind a 100% (or TDIU) threshold. A veteran planning around a 90% rating should know which doors stay closed:

Total property tax exemption on the homestead under Section 11.131.⁵
CHAMPVA health coverage for a spouse and dependents, which requires the veteran sponsor to be rated permanently and totally disabled at 100%.²⁶
Comprehensive VA dental care under Class IV.¹⁰
Independent Hazlewood eligibility for a spouse or child without the Legacy program’s age and one-child-at-a-time restrictions.

TDIU: The Pathway to 100% Benefits

A veteran rated at 90% who cannot maintain substantially gainful employment because of service-connected disabilities may qualify for Total Disability Individual Unemployability. TDIU does not change the underlying rating, but it pays at the 100% rate.²⁷ Texas treats TDIU as the equivalent of a 100% rating for the total property tax exemption, and TDIU also opens the door to CHAMPVA and full VA dental care. For a 90%-rated veteran, a TDIU determination is the single most consequential step toward the benefits still out of reach.

Surviving Spouse Carryover

An unremarried surviving spouse of a veteran who held the partial exemption at 10% to 99% continues to receive the same exemption amount. A surviving spouse of a 90%-rated veteran keeps the $12,000 homestead exemption. Surviving spouses of 100%-rated or TDIU veterans receive the total exemption and may port it to a new homestead so long as they do not remarry.²⁸

Under Hazlewood, surviving spouses of veterans who died from a service-connected cause, were killed in action, or were rated 100% disabled may qualify for their own 150-hour tuition exemption. Additional benefits may include Dependency and Indemnity Compensation from the VA, VA-backed home loans, burial in a Texas State Veterans Cemetery, and TVC employment assistance.²⁹

Where to Get Help

The Texas Veterans Commission employs VA-accredited benefits advisors across the state, all of them veterans, and services are free. They handle disability compensation claims, VA appeals, and reviews for additional benefits a veteran may qualify for.³⁰ TVC also partners with Veterans County Service Offices for local access, and its employment services division provides job coaching, resume help, and interview preparation, with priority for veterans facing significant employment barriers, including those with disabilities.³¹

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