Can a Disabled Veteran Get a 100% Property Tax Exemption in Texas If the Home Is in Their Spouse’s Name?

If you or your spouse is a 100% disabled veteran living in Texas, you may be eligible for a complete (100%) property tax exemption on your primary residence. But what if the home is titled only in your spouse’s name? Can the exemption still apply?

At Mike Massey Law, we often get questions like this from couples in Travis County and across Texas, especially when one spouse purchased the home before marriage and it’s still titled in their individual name.

Here’s what you should know — and why ownership matters when it comes to claiming the Texas disabled veteran homestead exemption.

Understanding the 100% Disabled Veteran Exemption in Texas

Texas law allows veterans who are 100% disabled (as determined by the VA) to receive a 100% exemption from property taxes on their residence homestead. This exemption can result in thousands of dollars in annual savings.

However, there’s a catch: the veteran must have a qualifying ownership interest in the property — even if they live there full time.

➤ Common Scenario:

• Jane purchased the home before marriage using her separate property funds.

• The deed is in her name only.

• John is a 100% disabled veteran and they both live in the home as their homestead.

Result? In most cases, John would not qualify for the 100% exemption — or would only get a partial exemption (e.g., 50%) — because he does not legally own the home.

How to Fix It: Converting to Community Property or Adding Ownership

There are two common ways to correct this and potentially qualify for the full exemption:

1. Execute a Community Property Conversion Agreement

Under Texas law, a married couple can convert separate property into community property through a written and signed agreement. Once the home becomes community property, John may qualify for the full exemption even though he wasn’t originally on the deed.

2. Transfer the Home into a Joint Living Trust

Another option is to transfer the property into a revocable living trust where both spouses are co-grantors and beneficiaries. The trust must be structured carefully to preserve John’s beneficial ownership and right to occupy the home, which are required for the exemption.

But What If There’s a Prenup?

If you have a prenuptial agreement that designates the home as the purchasing spouse’s separate property, a community property conversion or trust transfer could conflict with that agreement.

✅ In these cases, you might:

• Draft a Postnuptial Agreement to clarify that:

  • The home is now community property;

  • The spouse who paid the original down payment (e.g., $50,000) will be reimbursed if the couple ever divorces;

  • All other proceeds from a future sale would be split 50/50.

This preserves fairness, honors the original prenup, and helps unlock the full property tax exemption for the disabled veteran spouse.

So here are some items to discuss with your attorney:

✅ Convert property from separate property to community via  a conversion agreement

✅ Then use Warranty Deed to move it into a joint trust

✅ Have qualifying language in the trust for use of home and homestead

✅ Have the spouses as the lifetime beneficiaries

✅ Then update the home insurance

✅ Then talk to title insurance company

✅ Make sure to file the deeds with the county clerk

✅ Create an appropriate postnup with the prenup in mind

✅ etc.

Don’t Risk Losing Thousands: Talk to a Texas Property Exemption Lawyer

Property tax exemptions in Texas — especially those tied to disability ratings, VA benefits, homestead use, and marital property law — are nuanced and fact-specific.

At Mike Massey Law, we’ve helped countless families in Austin, Houston, and across Texas navigate the legal steps needed to protect their homes and maximize property tax savings.

📌 Final Disclaimer:

This blog post is for informational purposes only and is not legal advice. Every property tax exemption case involves its own unique facts and laws. You should not rely on this content without speaking to a qualified attorney. Contact Mike Massey Law today to schedule a consultation tailored to your situation.

📞 Ready to Maximize Your Exemption?

Call Mike Massey Law at www.mytxwills.com to discuss how we can help you secure your 100% Texas disabled veteran homestead exemption — the right way.