California Disabled Veterans Property Tax Exemption 2026 Explained

2026 California Veterans Property Tax Exemption: Full Guide

The 2026 California Disabled Veterans’ Property Tax Exemption provides $180,671** in tax-free assessed value for the basic exemption and **$271,009 for the low-income exemption, with an income limit of $81,131 for the higher tier . These amounts are adjusted annually for inflation and apply to the primary residence of a 100% service-connected disabled veteran or their unmarried surviving spouse. For 2026, several legislative proposals—including SB 296 and AB 2022—are advancing through the California legislature to potentially provide full property tax exemptions for qualifying disabled veterans .

Quick Facts: 2026 California Veterans Property Tax Exemption

What Is the California Disabled Veterans’ Property Tax Exemption?

The California Disabled Veterans’ Property Tax Exemption is a state program that reduces the property tax bill on the primary residence of a qualifying disabled veteran or their unmarried surviving spouse . The exemption is authorized by the California Constitution and implemented through Revenue and Taxation Code Section 205.5 .

How It Works

The exemption removes a set amount from the assessed value of your home before property taxes are calculated. For 2026, the basic exemption removes $180,671** from your home’s assessed value, and the low-income exemption removes **$271,009 . These amounts are adjusted annually based on the California Consumer Price Index (CCPI) .

Two Exemption Levels

Important: The exemption amount may never exceed the assessed value of the property. If your home’s assessed value is less than the exemption amount, your entire property tax bill could be eliminated .

Who Qualifies for the 2026 California Veterans Property Tax Exemption?

Eligibility Requirements for Veterans

To qualify, you must meet the following criteria:

1. Veteran status: You must be a veteran who served in the U.S. military and received an honorable or other-than-dishonorable discharge .

2. Disability rating: You must have a 100% disability rating from the U.S. Department of Veterans Affairs (VA), or be rated 100% unemployable due to a service-connected condition .

3. Disabling condition: The disability must be the result of a service-connected injury or illness. Qualifying conditions include:

   • Blindness in both eyes

   • Loss of use of two or more limbs

   • Total disability (100% rating) 

4. Property ownership: You must own the property, and it must be your principal place of residence .

5. Residency: You must be a California resident on January 1 of the year for which you apply .

Eligibility for Surviving Spouses

Unmarried surviving spouses may also qualify if:

• The veteran was 100% disabled and qualified for the exemption during their lifetime

• The veteran died from a service-connected injury or disease (regardless of their rating at death)

• The veteran died on active duty due to a service-connected injury or disease

• The spouse has not remarried 

Additional documents for surviving spouses:

• Marriage certificate 

• Veteran’s death certificate or Report of Casualty 

• VA Dependency and Indemnity Compensation (DIC) letter (if applicable) 

Character of Service

The veteran’s character of service must be under other than dishonorable conditions . You can prove this with your DD-214 or other VA documentation .

What Documents Do I Need to Apply?

You must submit the following to your county assessor’s office:

1. Completed Claim for Disabled Veterans’ Property Tax Exemption (BOE-261-G) 

2. VA Rating Decision Letter showing:

   • The 100% disability rating

   • The effective date of the rating 

3. DD-214 or other proof of character of service 

4. Disabled Veterans Low-Income Worksheet (if applying for the low-income exemption) 

For surviving spouses, also include:

• Marriage certificate 

• Death certificate or Report of Casualty 

Note: If you do not have your VA Rating Decision Letter or DD-214, contact the VA at 1-800-827-1000 to request copies .

How to Apply for the 2026 Exemption

Step-by-Step Instructions

Step 1: Confirm eligibility. Verify that you meet all the qualification criteria above. If your VA rating has changed, you may need to reapply .

Step 2: Gather required documents. Collect your VA Rating Decision Letter, DD-214, and any supporting documents for dependents or spouses .

Step 3: Complete the claim form. Fill out BOE-261-G (Claim for Disabled Veterans’ Property Tax Exemption). For low-income applicants, also complete the Disabled Veterans Low-Income Worksheet .

Step 4: File with your county assessor. Submit the completed claim form and supporting documents to the assessor’s office in the county where the property is located .

Step 5: File by the deadline. For the full exemption on the annual tax bill, file by December 31 of the tax year. For supplemental assessments, file within 30 days of receiving the Notice of Supplemental Assessment .

Step 6: Reapply annually for low-income. If you qualify for the low-income exemption, you must file a new claim every year by February 15 .

Where to Apply

Applications are filed with your county assessor’s office. Contact your local assessor for specific instructions and forms. The State Board of Equalization provides the forms statewide .

Filing Deadlines for 2026

Late filings: Claims received after December 31 may still qualify, but at a reduced amount for the initial filing .

Retroactive filings: California law allows for retroactive filings in some cases, up to a total of eight years .

2026 Legislative Updates: Full Exemption Proposals

Several bills moving through the California legislature in 2026 could significantly expand the disabled veterans’ property tax exemption.

SB 296 (Archuleta) – Full Property Tax Exemption

Status: Passed Senate May 29, 2025; Assembly hearing scheduled August 5, 2026 .

What it would do:

• Exempt 50% of the full assessed value for all qualifying disabled veterans 

• Exempt 100% of the full assessed value for low-income qualifying veterans (household income under $83,474, adjusted for inflation) 

• Applies to property tax lien dates on or after January 1, 2027, through January 1, 2032 

• Available to unmarried surviving spouses under the same terms 

Expected revenue impact: Estimated $192 million in revenue losses to local governments .

AB 2022 – Full Exemption Regardless of Income

Status: In committee .

What it would do:

• Provide a full property tax exemption on the assessed value of the primary residence for 100% disabled veterans 

• Would remove the income distinction entirely—full exemption for all qualifying veterans regardless of income 

• Extends to unmarried surviving spouses 

• Applies January 1, 2027, through January 1, 2032 

Support: California Association of Realtors supports the bill, stating it “helps deliver the dignity, security, and support that our most severely disabled veterans have earned” .

SB 888 (Seyarto) – Excluding Disability Payments from Household Income

Status: Passed Senate May 22, 2026 (33-0); now in Assembly .

What it would do:

• Exclude VA service-connected disability payments from the definition of household income for the low-income exemption 

• This means more veterans would qualify for the higher $271,009 exemption tier 

• Effective until January 1, 2037 

Important: These bills are not yet law. Check with your county assessor for current exemption amounts and eligibility.

What Veterans Should Do Next

1. Apply for the current exemption. Do not wait for legislative changes—apply now for the 2026 exemption using current law .

2. Check your VA rating. If you have a 100% rating but haven’t applied, do so immediately. If your rating has changed, reapply .

3. File by the deadline. Submit your claim by December 31, 2026, to receive the full exemption on the annual tax bill .

4. Update dependent information. If you are a surviving spouse or have dependents, ensure your records are current .

5. Watch for legislative changes. SB 296, AB 2022, and SB 888 could change exemption amounts. Monitor official sources for updates.

6. Contact your county assessor. For specific questions about your property, reach out to your local assessor’s office .

Common Mistakes to Avoid

Mistake 1: Missing the Filing Deadline

Filing after December 31 means you may receive a reduced exemption for that tax year . File early to avoid this.

Mistake 2: Not Reapplying Annually for Low-Income

Unlike the basic exemption, the low-income exemption requires an annual filing by February 15 . Many veterans lose the higher exemption tier by forgetting to reapply.

Mistake 3: Assuming the Exemption Applies Automatically

The exemption is not automatic. You must file a claim with your county assessor .

Mistake 4: Not Updating Your Rating

If your VA rating increases to 100%, you must reapply to receive the exemption. A previous denial does not prevent you from applying with a new rating .

Mistake 5: Not Including All Required Documents

Incomplete applications will be delayed. Ensure you submit your VA Rating Decision Letter, DD-214, and any supporting documents .

Mistake 6: Confusing This with the Homeowners’ Exemption

The Disabled Veterans’ Exemption is instead of the standard Homeowners’ Exemption—not in addition to it .

How the Exemption Amounts Are Calculated

The exemption amounts are adjusted annually for inflation based on the California Consumer Price Index (CCPI) .

2026 Calculation

For the 2026 assessment year, the California Department of Industrial Relations determined that the CCPI increased from 338.496 in February 2024 to 348.871 in February 2025—a 3.065% increase (factor of 1.03065) .

Common Questions

What is the 2026 California veterans property tax exemption amount?

The 2026 basic exemption is $180,671**, and the low-income exemption is **$271,009. The income limit for the low-income exemption is $81,131 .

Who qualifies for the California disabled veterans property tax exemption?

Veterans with a 100% service-connected disability rating (or 100% unemployable) who own and occupy their primary residence in California. Unmarried surviving spouses of qualifying veterans may also qualify .

Do I need to apply every year for the exemption?

The basic exemption is a one-time filing. However, the low-income exemption requires annual filing by February 15 .

What is the deadline to apply for the 2026 exemption?

File by December 31, 2026, for the full exemption on the annual tax bill .

Does the exemption apply to all property taxes?

It applies to the property tax bill on your primary residence. The exemption removes a set amount from the assessed value before taxes are calculated .

Can I get both the Homeowners’ Exemption and the Disabled Veterans’ Exemption?

No. The Disabled Veterans’ Exemption is instead of the Homeowners’ Exemption, not in addition to it .

What if my home is worth less than the exemption amount?

If your home’s assessed value is less than the exemption amount, your entire property tax bill may be eliminated. The exemption may never exceed the assessed value .

What is SB 296?

SB 296 is a proposed California law that would exempt 50% of the full assessed value (or 100% for low-income veterans) starting January 1, 2027. It passed the Senate and is pending in the Assembly .

What is AB 2022?

AB 2022 is a proposed California law that would exempt 100% of the full assessed value for qualifying disabled veterans regardless of income, effective January 1, 2027 .

What is SB 888?

SB 888 would exclude VA service-connected disability payments from household income calculations, helping more veterans qualify for the low-income exemption. It passed the Senate and is in the Assembly .

Key Takeaways

• The 2026 California Disabled Veterans’ Property Tax Exemption provides $180,671** (basic) or **$271,009 (low-income) of assessed value exempt from property taxes .

• The 2026 low-income household income limit is $81,131 .

• Eligibility requires a 100% service-connected disability rating and ownership of the primary residence .

• The basic exemption requires one-time filing; the low-income exemption requires annual filing by February 15 .

• File by December 31 for the full exemption on the annual tax bill .

• SB 296, AB 2022, and SB 888 are pending in the California legislature and could significantly expand the exemption in 2027 and beyond .

• The exemption applies to unmarried surviving spouses of qualifying veterans .

• Contact your county assessor to file a claim; forms are available from the State Board of Equalization .

Official Resources

• California State Board of Equalization: BOE.ca.gov

• Disabled Veterans’ Exemption Information: BOE.ca.gov/proptaxes/disabled_veterans_exemption.shtml

• VA Disability Compensation: VA.gov

• California Legislative Information: LegInfo.legislature.ca.gov

• USA.gov Veterans Benefits: USA.gov

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