Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What tax exemption is granted to veterans with a 100% disability in Texas?

1. Sales tax

2. Income tax

3. Property tax

4. Capital gains tax

The correct answer is: Property tax

Veterans in Texas who have a 100% disability rating are entitled to a property tax exemption. This exemption significantly reduces or eliminates the property taxes they are required to pay on their primary residence, providing considerable financial relief. The rationale behind this benefit is to honor the service and sacrifices made by disabled veterans, aiding them in achieving some stability and security in their housing situation. While sales tax, income tax, and capital gains tax are important forms of taxation, they do not offer specific exemptions tied to veteran disability status in the state. Texas does not levy an income tax, and although veterans may receive certain benefits related to sales tax or capital gains tax, these do not equate to the robust property tax relief available specifically to those with a 100% disability rating. Thus, the property tax exemption stands out as a vital financial support for qualifying veterans in Texas.