Texas State Veterans Benefits

Many veterans are aware of the numerous benefits offered through the federal Department of Veterans Affairs (VA) such as disability compensation, home loans, and education assistance. But fewer vets may be familiar with the benefits available from their state government, many of which are tailored specifically for the needs of veterans residing in that state. For example, one service provided by the state of Texas helps veterans buy and improve land at discounted rates.

According to data from the U.S. Census Bureau, about 1.5 million veterans live in Texas. Whether you've been out of the service for many years or you're recently discharged from active duty, it's important to know about the full range of benefits afforded to you and your family so that you can make sure your needs as a veteran continue to be met well into the future.

Who Provides Veteran Benefits in Texas?

The Texas Veterans Commission is the veterans' affairs department for the state of Texas. Headquartered in Austin, the Commission administers programs involving educational benefits, employment preferences for veterans, mortgage assistance, and property tax exemptions. Issues concerning land sales and home loan assistance for veterans are covered by the Veterans Land Board.

You can contact the Commission by calling (512) 463-6564, or you can email them at info@tvc.texas.gov. The Land Board is available to answer your questions between 7:30 a.m. and 5:30 p.m., Monday through Friday, at (800) 252-8387 or VLBinfo@glo.texas.gov.

Texas Veteran Land Board Loans and Housing Assistance

Veterans living in Texas can take advantage of three land loan and housing assistance programs offered by the Land Board. Additionally, Texas offers land sales three times a year exclusively for veterans where they have the opportunity to bid on properties and purchase tracts of land in their desired counties.

Veterans Land Loan Program

The only benefit of its kind in the country, the Texas Veterans Land Loan Program allows veterans to borrow up to $150,000 to purchase land at favorable interest rates. (If two veterans are married to each other, they may borrow up to $225,000.) The program typically requires a minimum five percent down payment for tracts of one acre or more. In 2025, the current land loan interest rate for veterans is 7.25%.

Veterans Housing Assistance Program (VHAP)

The Veterans Housing Assistance Program (VHAP) helps eligible Texas veterans purchase a home with a low-interest loan and little or no down payment. Qualifying veterans can receive up to $806,500 on a fixed-rate loan for a term of 15, 20, 25, or 30 years. In order to be eligible for VHAP, you'll need to meet the following criteria:

• The house you're buying is your primary residence in Texas.
• The property is a single-family attached or detached house, townhouse, or condominium.
• If the property is a duplex, it must have been constructed at least five years before the loan closing date.
• New construction must be energy efficient, as established by Energy Star certification or an Energy Rating/HERS index score of 75 or less.
• You'll occupy the home within 60 days after loan closing and use it as your primary residence for at least three years.

Veterans must also be legal residents of dates on the date they apply for the loan and must have served at least 90 days on active duty, unless discharged sooner due to a service-connected disability. (Dishonorably discharged veterans aren't eligible for VHAP.)

For 2025, the VHAP base interest rate is 6.08%. Veterans who have a VA service-connected disability rating of at least 30% can get a discounted interest rate of 5.58%.

Veterans Home Improvement Loans

The Texas Veterans Home Improvement Program (VHIP) provides below-market interest rate loans of up to $50,000 to eligible veterans so that they can make repairs and improvements to their existing homes. (As with VHAP loans, veterans with at least a 30% rated disability can get a further discounted interest rate.) In order to qualify for VHIP, you must meet the following criteria:

• The house you're repairing is wholly located in the state of Texas and is your primary residence.
• If you're improving a duplex, triplex, or four-plex, it must be at least five years old.
• An inspection is required to make sure that no work has been done and no materials have been delivered before getting the loan.
• You must secure a general contractor, and you can't advance funds.
• For loans over $25,000, the Land Board must be in a first lien position. A current appraisal report may be required to determine the amount of equity in the home.

Funds from a VHAP loan can be used to make eligible improvements only and must comply with building codes and standards. The Land Board maintains a list of eligible and ineligible home improvements for your reference, so it's a good idea to double check before you start construction.

Texas Veteran License Plates

The Texas Department of Motor Vehicles issues special license plates to veterans in honor of their service. There are 119 different license plates available to commemorate military branches, major events, medal awards, and service badges, with an additional 101 plates exclusive to disabled veterans. These plates are offered at no extra cost to veterans, but you'll still need to pay vehicle registration and inspection fees. For more information—including a veteran license plate brochure and steps on how to apply—visit https://www.txdmv.gov/motorists/for-our-troops.

Veteran Educational Benefits in Texas

Under the Hazelwood Act, veterans and their dependent family members can get up to 150 hours exempt from tuition at public colleges and universities in Texas. The exemption applies to most fees but doesn't include other costs, such as books and living expenses. In order to be eligible for the tuition exemption, you'll need to meet the following requirements:

• You were a resident of Texas, indicated Texas as the "home of record," or entered the service in Texas at the time of entry into active duty in the U.S. Armed Forces.
• You received either an honorable discharge or a general discharge under honorable conditions.
• You served on active duty for at least 181 days (excluding training).
• You have no VA education benefits or you have no VA educational benefits that exceed the amount of the Hazelwood tuition exemption.
• You aren't in default on a student loan provided or guaranteed by the state of Texas.
• You're enrolled in classes from a college that receives tax support (unless the college board allows veterans to take the Hazelwood benefit while taking non-funded courses).
• You maintain a GPA sufficient to qualify as "satisfactory academic progress" as determined by the school's financial aid policy and don't attempt excessive credit hours.

In order to receive Hazelwood funds, you must first get accepted by a public university or college in Texas. (Visit Apply Texas for application information.) Obtain your DD-214 to verify your military service and type of discharge, then contact the VA to ask for a letter showing whether or not you are eligible for federal education benefits.

After you have completed the above steps, complete the Hazelwood application form and submit it along with the above documentation to the financial aid office of the school you've been accepted to. The financial aid office should let you know whether your application for Hazelwood benefits has been accepted. The office may send you an email or a letter—or simply deposit the funds into your school account.

Employment Support for Veterans

Veterans who are seeking work, starting a business, or learning new skills can enjoy several employment benefits provided by the state of Texas. These include a state hiring preference for veterans, job counseling, and vocational assistance.

Veterans Preference for Texas Government Jobs

Texas veterans, as well as surviving spouses and children of service members killed during active duty, receive hiring preference for jobs with Texas state offices and agencies. This means that if two applicants are being considered for the same position and they are equally qualified, the agency will hire the veteran over the civilian. (Tex. Gov't. Code § 657.001).

You're eligible for preferential hiring if you were honorably discharged from service in the Army, Navy, Air Force, Coast Guard, Marine Corps, United States Public Health Service under 42 U.S.C. 201, the Texas military forces (as defined by Tex. Gov't. Code § 437.001) or an auxiliary service of one of these branches of the armed forces. Texas state agencies have an established goal of having 20% of their employees be veterans.

Employment and Business Assistance

Texas' Veterans Employment Services is a good source of information about state programs dedicated to helping veterans find work. The website updates frequently and includes a calendar showing upcoming hiring events and job fairs. For veterans who would like to start their own businesses, the Veteran Entrepreneur Program can assist in getting funding and other training resources.

Texas Property Tax Exemption for Veterans

Disabled veterans (as well surviving spouses and dependent children of service members who died while on active duty) are eligible for state property tax exemptions. The exact amount of the exemption depends on your VA disability rating.

In order to receive the property tax exemption, submit your official VA disability award letter to your county's tax appraisal office.

Additional Resources for Texas Veterans

The Texas Veterans Portal provides information on veterans' benefits and resources in a wide range of categories, including opportunities to connect with other Texas vets. TexVet.org also contains useful links as well as a calendar of veteran-centered events, and the Texas State Bar has put together a comprehensive pamphlet addressing potential legal issues facing veterans. (You can check out our article on VA lawyers to learn more about when to hire an attorney.)