The California property tax exemption for 100% disabled veterans
Starting in 2027, California exempts half of your home's assessed value from property tax, or all of it for lower-income households, up to the first $1 million. Here is who qualifies, what it is worth, and exactly how to file.
What changed
California has offered a Disabled Veterans' Exemption for years, but it was capped at a fixed dollar amount (about $186,000 of value for the basic exemption and about $279,000 for the low-income version). With home prices where they are, that often covered only a small slice of the bill. SB 296, signed by the Governor on September 28, 2026, raises the exemption to a percentage of your home's value instead.
- Half of your home's assessed value is exempt, up to the first $1 million of value
- No income limit
- File once; it stays in place while you own and live in the home
- The first $1 million of assessed value is fully exempt
- Household income of $83,474 or less for 2027 (adjusted in later years)
- Must be re-filed every year between January 1 and February 15
Timing: the new amounts apply to property tax lien dates from January 1, 2027 through 2031. The law sunsets January 1, 2032 unless lawmakers extend it.
What it could save you
California's base property tax rate is 1% of assessed value, and most counties land between about 1.1% and 1.25% once local voter-approved bonds are added. Here is a simple example on a home assessed at $700,000, using a 1.1% total rate:
| Scenario | Exempt value | Taxable value | Est. annual tax |
|---|---|---|---|
| No exemption | $0 | $700,000 | $7,700 |
| Old basic exemption (2026) | about $185,900 | about $514,100 | about $5,655 |
| New standard exemption (50%) | $350,000 | $350,000 | $3,850 |
| New low-income exemption (100%) | $700,000 | $0 | $0 on ad valorem tax |
Illustration only. Your actual tax depends on your county, your assessed value and any fixed charges on your bill. Parcel taxes, Mello-Roos and other direct assessments are not based on assessed value, so the exemption does not remove them.
Why this matters when you buy: property tax is part of the monthly payment used to qualify you for a loan. A lower tax bill can lower your payment and your debt-to-income ratio. If you are rated 100% and buying in California, bring this up early so we can plan your payment with it in mind.
Who qualifies
The veteran has one of these
- A 100% service-connected disability rating from the VA or their branch of service
- Payment at the 100% rate because of individual unemployability (TDIU)
- Service-connected blindness in both eyes
- Service-connected loss of use of two or more limbs
And all of these
- Discharged under conditions other than dishonorable
- The home is the primary residence: a house, condo, townhome, manufactured home or co-op (a care-facility stay still counts if the home is not rented out)
- The home is owned by the veteran, the spouse, or both
- California homes only
Surviving spouses: an unmarried surviving spouse qualifies if the veteran had, or would have qualified for, the exemption, or if the veteran died from a service-connected injury or disease.
How much could you save?
Enter a few numbers from your property tax bill to estimate your exemption under SB 296, starting in 2027.
Your estimate is ready
Tell me where to send it and your results unlock right away.
Where should I send your estimate?
Fill this out and you'll come right back here with your results unlocked.
Estimate only, for lien dates 2027 through 2031. Uses SB 296: 50% of the first $1,000,000 of assessed value, or 100% of the first $1,000,000 if household income is $83,474 or less (2027 limit, adjusted yearly). Special assessments, bonds and fixed charges on your bill (like Mello-Roos) are not reduced. Your county assessor makes the final determination. This is not tax or legal advice.
How to file
- Check the list aboveMake sure you meet the rating and residence requirements.
- Get your VA letterDownload your Benefit Summary Letter from va.gov. It shows your combined rating or that you are paid at the 100% rate.
- Grab your DD-214This is your proof of service and honorable discharge. Surviving spouses also need a marriage certificate and the veteran's death certificate.
- File Form BOE-261-GGet the Claim for Disabled Veterans' Property Tax Exemption from the assessor in the county where the home is. Each county issues its own official copy. Find your county assessor or preview a sample of the form.
- Beat the deadlineStandard: within 90 days of qualifying or by the next January 1, whichever is later, for the full exemption. Low-income: every year between January 1 and February 15. Late filings receive a reduced exemption.
- Get free helpYour County Veterans Service Office (CVSO) will walk you through it at no cost.
Who gets 100%? Households with income of $83,474 or less (the 2027 limit, adjusted each year) can exempt 100% of the first $1 million of home value. Everyone else who qualifies gets 50%. Veterans paid at the 100% rate due to unemployability (TDIU) qualify too, not just those with a 100% rating.
Already have the old exemption? Call your county assessor and confirm you will receive the new amount for 2027. If your home is valued at about $371,778 or less and your income is over the low-income limit, you can stay on the existing exemption if it works out better for you.
Common questions
Can I combine this with the Homeowners' Exemption?
No. Only one exemption applies per property, and the Disabled Veterans' Exemption is worth far more than the $7,000 Homeowners' Exemption.
Does it cover my whole property tax bill?
It reduces the tax based on assessed value. Fixed charges such as parcel taxes, Mello-Roos and other special assessments still apply.
My home is worth more than $1 million. Do I still qualify?
Yes. The exemption applies to the first $1 million of value. With the standard exemption, that means up to $500,000 of value is exempt; with the low-income exemption, up to $1 million.
When does it start?
It applies to the January 1, 2027 lien date, which is the 2027-28 property tax bill, and runs through the 2031 lien date.
I am buying a home now. When should I file?
File as soon as you close and move in. To get the full exemption, the standard claim must be filed within 90 days of qualifying or by the next January 1, whichever is later.
Does this apply outside California?
No. SB 296 is a California law. Many other states offer their own property tax relief for disabled veterans, with different rules.
Planning to buy with a 100% rating?
I'll build this exemption into your numbers from day one, so you see your real monthly payment before you make an offer.
Sources: California SB 296 (Archuleta), signed 9/28/2026; California State Board of Equalization, Disabled Veterans' Exemption (boe.ca.gov). Applies to lien dates 2027 through 2031. One exemption per property. Income limits and exemption rules are set by the State and may change; your county assessor makes the final determination. This page is informational only and is not tax or legal advice.