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Tax Exemptions

Find information on key laws and resources for Texans with disabilities who qualify for tax exemptions. This page provides information on both resources and contacts that can help when looking for tax exemptions in the state. Additionally, this page includes a summary of laws by topic that relate to tax exemptions for people with disabilities. This section is not intended to be used for legal advice.

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Resources

Contacts

Additional Resources

Federal and State Law

Federal Income Taxes

Special assistance is available for persons with disabilities. If you are unable to complete your tax return because of a disability, you may be able to obtain assistance from an IRS office or the Volunteer Income Tax Assistance or Tax Counseling for the Elderly Programs sponsored by IRS.

The IRS also has some federal tax benefits for people with disabilities. Check to see if you qualify.

Texas Sales Tax Exemptions (Texas Tax Code 151.313) 

To document that the sale is exempt from sales tax, the purchaser must give the seller a prescription or a tax exemption certificate available from the Texas Comptroller of Public Accounts for the following items:

Medical Supplies

  • a drug or medicine, other than insulin, if prescribed or dispensed for a human or animal by a licensed practitioner of the healing arts
  • insulin
  • a drug or medicine that is required to be labeled with a "Drug Facts" panel in accordance with regulations of the federal Food and Drug Administration (FDA), without regard to whether it is prescribed
  • a hypodermic syringe or needle
  • a brace; hearing aid or audio loop; orthopedic, dental, or prosthetic device; ileostomy, colostomy, or ileal bladder appliance; or supplies or replacement parts for the listed items
  • a therapeutic appliance, device, and any related supplies specifically designed for those products, if prescribed, when those items are purchased and used by an individual for whom the items listed were dispensed or prescribed
  • corrective lens and necessary and related supplies, if dispensed or prescribed by an ophthalmologist or optometrist
  • hospital beds
  • blood glucose monitoring test strips;
  • intravenous systems, supplies, and replacement parts designed or intended to be used in diagnosis or treatment
  • a wound care dressing

Communication Equipment for the Deaf and Hard of Hearing 

  • hearing aid or audio loop, including supplies and replacement parts (also listed under medical supplies)
  • specialized printing or signalling equipment used by people who are deaf for the purpose of enabling them to communicate through the use of an ordinary telephone and all materials, paper, and printing ribbons used in that equipment
  • a light signal and device to adapt items such as telecommunication devices for the deaf (TDDs), telephones, doorbells, and smoke alarms
  • adaptive devices or adaptive software for computers used by persons who are deaf

Assistive Technology and Equipment for Vision Loss 

  • corrective lens and necessary and related supplies, if dispensed or prescribed by an ophthalmologist or optometrist (also listed under medical supplies)
  • a braille wristwatch, braille writer, braille paper and braille electronic equipment that connects to computer equipment, and the necessary adaptive devices and adaptive computer software
  • each of the following items if purchased for use by people who are blind to enable them to function more independently: a slate and stylus, print enlarger, light probe, magnifier, white cane, talking clock, large print terminal, talking terminal, or harness for guide dog

Independent Living Supports 

  • an adjustable eating utensil used to facilitate independent eating if purchased for use by a person, including a person who is elderly or physically disabled, has had a stroke, or is a burn victim, who does not have full use or control of the person's hands or arms
  • an adult or a children's diaper
  • baby wipes

Vehicles and Modifications  (Texas Tax Code 152.086)

To receive this exemption, the purchaser must complete the Title Application Tax/Affidavit Form, available from the Texas Comptroller of Public Accounts.

Taxes do not apply to the sale or use of a motor vehicle that:

  • has been or will be modified before the second anniversary of the date of purchase for operation by, or for the transportation of, a person with a mobility disability;  and
  • is driven by or used for the transportation of an individual with a mobility disability

The seller of a motor vehicle may not collect the tax from the purchaser of the motor vehicle if the purchaser:

  • signs at the time of the purchase an exemption certificate that is on a form designated by the comptroller; and
  • contains all information the comptroller considers reasonable to establish qualification for the exemption at the time of sale, and presents any other documentation or information the comptroller requires.

If the comptroller finds that the motor vehicle is not used primarily for the purposes specified above ,or that the exemption should not have been granted, the comptroller shall assess the tax in an amount that would have been due had the exemption not been granted.

Property Tax Exemptions (Texas Property Tax Code 11.13)

There are several types of exemptions people with disabilities or individuals over 65 can apply for with their tax appraisal district:

  • School district taxes: All residence homestead owners are allowed a $100,000 homestead exemption from their home's value for school district taxes.
  • County taxes: If a county collects a special tax for farm-to-market roads or flood control, a residence homestead owner is allowed a $3,000 exemption for this tax. If the county grants an optional exemption for homeowners age 65 or older or disabled, the owners will receive only the local-option exemption.
  • Age 65 or older and disabled exemptions: Individuals age 65 or older or disabled residence homestead owners may qualify for an additional $10,000 homestead exemption for school district taxes. If the owner qualifies for both 65+ and disability exemptions, the owner can only choose one or the other for school district taxes. The owner cannot receive both exemptions.
  • Optional percentage exemptions: Any taxing unit, including a city, county, school or special district, may offer an exemption of up to 20 percent of a residence homestead's value. No matter what the percentage is, the amount of an optional exemption cannot be less than $5,000. Each taxing unit decides if it will offer the exemption and at what percentage. This percentage exemption is added to any other homestead exemption under Tax Code Section 11.13 for which an owner qualifies.  
  • Optional age 65 or older or disabled exemptions: Any taxing unit may offer an additional homestead exemption amount of at least $3,000 for taxpayers age 65 or older or disabled.

To be eligible for a tax exemption as a person with a disability, an individual must:

  • Qualify to receive disability benefits under the Federal Old-Age, Survivors and Disability Insurance Program administered by the Social Security Administration.
  • Disability benefits from any other program do not automatically qualify a person for a property tax exemption.
  • To prove eligibility, an individual may need to provide the appraisal district with information on their disability. Contact the local appraisal district for information on what documents are required to prove eligibility.

Tax ceiling for people with disabilities and individuals over 65:

  • If an individual qualifies their residence homestead for an age 65 or older or disabled person homestead exemption for school district taxes, the school district taxes on that homestead cannot increase as long as they own and live in that home.

Property Tax Exemption for Texas Veterans (Texas Property Tax Code 11.13)

This requires an exemption of the total appraised value of homesteads of Texas veterans who received 100 percent compensation from the U.S. Department of Veterans Affairs (VA) due to a 100 percent disability rating or determination of individual unemployability by the VA. This exemption can only be applied to a residence homestead of a disabled veteran.

A disabled veteran who owns property other than a residence homestead may apply for a different disabled veteran’s exemption under Tax Code Section 11.22 that applied according to the veteran’s disability rating of 10 percent or higher.

An individual must apply to their local appraisal district between Jan. 1 and April 30. Download and print Form 50-114, Application for Residence Homestead Exemption from the Comptroller’s website.

Surviving spouses of veterans who qualified for this exemption or who would have qualified for this exemption if it had been in effect at the time of the veteran's death are eligible if:

  • the surviving spouse has not remarried;
  • the property was the surviving spouse's residence homestead at the time of the veteran's death; and
  • the property remains the surviving spouse's residence homestead.

Deferred Property Tax Payments

Texans may postpone paying current and delinquent property taxes on their homes by signing a tax deferral affidavit at their appraisal district office if they are:

• age 65 or older;

• disabled as defined by law;

• qualified disabled veterans, their unmarried surviving spouses, or their unmarried children under age 18, if no surviving spouse; or

• unmarried surviving spouses of U.S. armed service members killed on active duty and their unmarried children under age 18.

Once the affidavit is on file, taxes are deferred — but not cancelled — as long as the owner continues to own and live in the home. Taxes accumulate with 5 percent interest per year. The law extends the tax deferral to the surviving spouse of the person who deferred taxes on the homestead if the surviving spouse was at least 55 years old when the deceased spouse died.

A filed tax deferral affidavit keeps homeowners from losing their homesteads because of delinquent property taxes. A pending sale to foreclose on the homestead’s tax lien will also cease as a result of filing a tax deferral affidavit. In addition, no taxing unit can start or continue a lawsuit to collect delinquent taxes once an affidavit is filed. There are no penalties on delinquent taxes during the deferral period; however, a tax deferral does not cancel penalties that were already due. All deferred taxes and interest become due when the homeowner or surviving spouse no longer own and live in the home. If the tax debt remains unpaid at that time, penalties may be imposed and taxing units may take legal action to collect the past due amount.