Property taxation: exemption: disabled veteran homeowners

The law reduces property taxes on up to $1 million of a qualifying home’s assessed value, with a full exemption for lower-income households. It applies to lien dates from January 1, 2027, through January 1, 2031.

What the law does ​

• Exempts 50% of a qualifying principal residence’s value up to $1 million for veterans who are totally service-connected disabled, blind in both eyes, or have lost the use of at least two limbs.
• Exempts 100% of that value for eligible veteran or surviving-spouse households with income at or below $83,474, adjusted annually.
• Extends equivalent relief to qualifying unmarried surviving spouses, including spouses of veterans who died from a service-connected injury or disease.
• Requires claimants to provide county assessors disability-rating documentation from the United States Department of Veterans Affairs or the relevant military service.
• Replaces other real-property-tax exemptions for the same claimant and residence, except that eligible veteran co-owners may each claim relief for their ownership share.
• Requires the State Board of Equalization to annually collect available county data and report exempted assessed value and recipient counts to the Legislature through 2031.
• Does not reimburse local agencies for property-tax revenue lost because of the exemption.

Who it affects ​

• Qualifying disabled veterans who own and live in their California principal residence.
• Eligible unmarried surviving spouses of qualifying deceased veterans.
• County assessors that review exemption claims and supply available data.
• Local agencies that lose property-tax revenue from the exemption.

Context ​

The law expires on January 1, 2032, and preserves the existing exemption instead for higher-income qualifying households whose home value does not exceed the lower statutory threshold.