The charity sold me the house for 40% of its value. Do I qualify?

On the statutory test, yes — the payment has to be no more than 50 percent of the charity's good-faith market value estimate. Take the donation paperwork showing both figures.

Does it pass to my spouse?

Yes. §11.132(c) carries the same percentage to an unmarried surviving spouse.

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Exemption for a Donated Home of a Partially Disabled Veteran

If a charity donated your home, or sold it to you for no more than half its market value, you are exempt from a share of the tax equal to your disability rating.

Verified August 17, 2026

What this benefit is

If a charity donated your home to you, or sold it to you for no more than half its market value, you are exempt from a share of the property tax equal to your disability rating.

A 70 percent rating exempts 70 percent of the appraised value.

What it's worth: A share of your tax bill equal to your disability rating

A 70 percent rating exempts 70 percent of the appraised value.
It passes to an unmarried surviving spouse under §11.132(c) at the same percentage.

Who is entitled to it

A veteran with a disability rating below 100 percent,
whose residence homestead was donated by a 501(c)(3) charitable organisation, or sold by one to the veteran for no more than 50 percent of its good-faith market value at the date of donation.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

The thing most people get wrong

The 50 percent test is measured against the charity's estimate, at the time

The threshold is what you paid against the charity's own good-faith estimate of market value AS AT the date of the donation — not against a later appraisal, and not against what the district thinks the house is worth now. If the charity never recorded that estimate in writing, the district has nothing to measure your payment against. Ask the organisation for the estimate in writing when the donation happens. Groups like Homes For Our Troops and Operation Finally Home build these homes; they are used to the request.

How to claim it

Deadline: April 30

1Get the donation paperwork from the charity showing what you paid, if anything, against their good-faith estimate of market value.
2File Form 50-114 with your county appraisal district.

Form: 50-114
File with: Your county appraisal district
Documents you will need: va disability award letter · charity donation documentation · proof of title
Stays in place once granted: Re-file when you move. Tell the district when your VA rating changes.; A district may ask you to re-apply periodically to confirm you still qualify. Answer that letter.

Common mistakes that cost people this benefit

Assuming a donated home is automatically fully exempt. The exempt share equals your rating, not 100 percent.
Not getting the charity's market value estimate in writing at the time of the donation.
Claiming this at a 100 percent rating instead of §11.131, which exempts the whole value.

Known gapThe 50 percent test is measured against the charity's own good-faith estimate of market value at the date of the donation, not against a later appraisal. If the charity did not record that estimate, the district has nothing to measure against — ask them for it in writing at the time.

Questions people ask

The charity sold me the house for 40% of its value. Do I qualify?: On the statutory test, yes — the payment has to be no more than 50 percent of the charity's good-faith market value estimate. Take the donation paperwork showing both figures.
Does it pass to my spouse?: Yes. §11.132(c) carries the same percentage to an unmarried surviving spouse.

Sources

authority · statuteTex. Tax Code §11.132
operating · published policyTexas Comptroller — Property Tax Exemptions

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.