California disabled veteran property tax exemption (2026)
Basic exemption $180,671 at 100% or IU. The low-income exemption of $271,009 applies when household income is $81,131 or less (2026), and VA pay counts toward that income. New buyers are taxed on the purchase price (about 1% plus local bonds, typically 1.1–1.3%), not the lower average long-time owners pay.
Changing in 2027: under SB 296, starting with the 2027–28 tax bill, veterans rated 100% or paid at 100% for IU can exempt 50% of their home’s value (up to $1 million), or all of it if household income is $83,474 or less. It runs through 2031. Read SB 296 ↗
See your true monthly cost in California →
Free. Applies your rating, VA pay and this exemption to any home.
Property tax break by VA rating
| VA rating | Property tax break | Saves / yr* |
|---|---|---|
| 10–90% | No statewide exemption | — |
| 100% or IU | $180,671 of value exempt Or, if household income $81,131 or less, VA pay counts: $271,009 of value exempt | $1,987 up to $2,981 |
*Example: a $400,000 home at California's average property tax rate of 1.10%, about $4,400 a year before any exemption. Your bill depends on your county and home. IU means paid at the 100% rate for individual unemployability. P&T means permanent and total. Exemptions aren't automatic: you apply with your county assessor after you buy.
Military retirement pay
Military retirement partly taxed. First $20,000 excluded when AGI is under $125,000 (single) or $250,000 (joint), tax years 2025–2030.
VA disability pay is tax-free in every state.
Home loan and down payment help
- For veterans: CalVet Home Loans ↗
- California Housing Finance Agency (CalHFA) ↗ (state housing agency: first-time buyer and down payment programs)
Programs change often. Check income limits, first-time buyer rules and whether they can be combined with a VA loan.
Get help in California
- California Department of Veterans Affairs (CalVet) ↗: free help with state veteran benefits.
- Your county assessor's office handles the property tax exemption application.