California Veterans Property Tax Exemption

Article XIII of the California Constitution and Revenue and Taxation Code section 205.5 provide a property tax exemption for the home of a veteran — or the home of an unmarried surviving spouse of a veteran — who, because of an injury or disease incurred in military service, is:

• blind in both eyes,
• has lost the use of two or more limbs, or
• is totally disabled — rated 100 percent by the U.S. Department of Veterans Affairs, or compensated at the 100 percent rate because they are unable to work (often called TDIU or Individual Unemployability).

The exemption applies to the property that is owned by and serves as the veteran's principal place of residence — including a home held jointly with a spouse. It does not apply to special taxes or direct levies such as school parcel taxes, and it does not cover vacation homes or rental property.

There are two exemption levels, and both are adjusted annually for inflation by the State Board of Equalization:

• Basic exemption — a fixed dollar amount removed from the home's assessed value. It started at $4,000 when the program was created and is now higher due to annual adjustments. Once granted, it continues automatically — no yearly paperwork — as long as you remain eligible.
• Low-income exemption — a much larger exemption for qualifying households below the annual income limit. This tier requires a new claim form each year, submitted by February 15.

Because the amounts change every year, ask your county assessor or your County Veterans Service Office for the current-year figures when you file.

SB 296, authored by Senator Bob Archuleta and signed by Governor Newsom in 2026, adds a far larger exemption for the biggest cost of homeownership:

• For property tax lien dates on or after January 1, 2027 and before January 1, 2032, 50 percent of the first $1,000,000 of the home's full value is exempt from taxation.
• If the household income is at or below $83,474 (adjusted annually for inflation), the qualifying home receives a 100 percent exemption on that portion — no property tax on the first $1 million of value.
• The exemption applies to a home owned by the veteran, the veteran's spouse, or the two jointly, that serves as the veteran's principal place of residence.
• Qualifying unmarried surviving spouses remain eligible.

In practical terms, a 100% disabled veteran with a $800,000 home would see roughly half of the home's value exempted from the general tax rate under SB 296 — a saving of several thousand dollars a year — and qualifying lower-income households could see that portion of their property tax eliminated entirely.

Read the enrolled text of SB 296 for the full eligibility requirements.

The exemption is claimed locally — not through the VA. File with the county assessor in the county where the home is located:

1. Get a claim form from the BOE-261 series from your county assessor's website or office.
2. Attach proof of eligibility, typically your VA rating or award letter showing the 100 percent rating (or documentation of blindness or loss of limb use).
3. Submit the claim to the county assessor. Filing deadlines vary depending on your situation, so file as soon as you qualify — the assessor's instructions explain the deadlines that apply to you.
4. If you claim the low-income exemption, remember it must be re-filed every year.

If your eligibility ends — for example, you sell the home or your rating changes — you must notify the assessor. State law imposes a 25 percent penalty for failing to do so.

Your County Veterans Service Office (CVSO) will sit down with you, walk through the claim form, and file it with you at no cost. Find your county's office in our resource directory.

• 100% VA Disability Benefits in California — vehicle registration, park passes, tuition waivers, and more.
• How to file a VA disability claim — the first step toward the rating that unlocks these benefits.
• Legislative Hub — track the veteran bills we follow and make your voice heard.