California Veterans Property Tax Exemption: Amounts and Deadlines

The California veterans’ property tax exemption comes in two very different forms. The basic version knocks $4,000 off the assessed value of a qualifying veteran’s property, but an asset cap puts it out of reach for most homeowners. The disabled veterans’ exemption is the one that actually moves the needle: for the 2026 assessment year, it reduces assessed value by $180,671, or by $271,009 if household income stayed under $81,131 the prior year.¹ Both are filed with your county assessor, and both have deadlines that cost you money if you miss them.

The Basic $4,000 Veterans’ Exemption

Any California veteran with an honorable discharge can claim a $4,000 reduction in assessed value, but only if their total real and personal property stays under $5,000 (single) or $10,000 (married). At California property values, almost no homeowner clears that bar, which is why this exemption rarely does real work.²

Service has to meet one of three conditions: wartime service, a peacetime campaign for which Congress issued a medal, or a release from active duty for a service-connected disability. You must be a California resident on the January 1 lien date, and the claim is due by February 15 for the full exemption that tax year.²

If you qualify for the disabled veterans’ exemption below, ignore this one. You can’t claim both on the same property, and the disabled version is worth dramatically more.³

Who Qualifies for the Disabled Veterans’ Exemption

Revenue and Taxation Code Section 205.5 sets the rules. The exemption is for veterans who are blind in both eyes, have lost the use of two or more limbs, or are totally disabled from an injury or disease that occurred during military service.⁴ In practical terms, a 100% disability rating from the U.S. Department of Veterans Affairs meets the standard.

Veterans rated below 100% schedular can still qualify if the VA grants Total Disability based on Individual Unemployability (TDIU). TDIU applies when service-connected disabilities keep a veteran from steady work even though no single rating hits 100%. TDIU recipients are paid at the 100% rate, and California treats them the same as schedular 100% veterans for this exemption.⁴

Beyond the disability itself, three further conditions apply:

Discharge was under other than dishonorable conditions.
The property is your principal place of residence, and you are a California resident when you file.
The home is owned by you, your spouse, or both of you jointly.

An unmarried surviving spouse can continue claiming the exemption on the same home after the veteran’s death. Remarriage ends that eligibility, which is worth planning around.⁴

How Much Is the Exemption Worth in 2026?

For the 2026 assessment year, every qualifying disabled veteran gets a Basic Exemption of $180,671 off assessed value, regardless of income. The Low-Income Exemption raises that to $271,009, but only if total household income for the prior calendar year was below $81,131.¹ All three figures adjust each year with the California Consumer Price Index.⁴

Household income counts everything coming in: wages, Social Security, pensions, investment returns, the lot. If your income exceeds the limit in a given year, you drop to the Basic Exemption that year and can move back to the Low-Income tier the next year if income falls back under.

How to Apply

The form is BOE-261-G, “Claim for Disabled Veterans’ Property Tax Exemption.” File it with the county assessor in the county where your home is located. The form asks for the parcel number, the date you acquired and moved into the home, and a certification that it’s your primary residence.⁵

Submit it with:

Your DD-214, showing discharge under other than dishonorable conditions.
A current VA letter confirming your 100% disability rating or TDIU status.
Income documentation for the Low-Income tier: Social Security statements, pension records, tax returns covering the prior calendar year.

Assemble everything before you file. Missing documents are the main reason claims stall, and a stall can push you past a deadline that trims the benefit.

Filing Deadlines and Late-Filing Reductions

Deadlines work differently for first-time claims and for the annual Low-Income renewal.

First-Time Claims

When you first become eligible, through a new disability rating, a home purchase, or a move into a new primary residence, file between the date of the qualifying event and the following January 1, or within 90 days of the event, whichever is later. Filing in that window gets you 100% of the exemption. File after it and you receive 85% for the first year.³

The Basic Exemption is a one-time filing. Once approved, it stays in place as long as you remain in the same home and keep your disability rating. No annual renewal.

Annual Low-Income Renewal

The Low-Income Exemption has to be reclaimed every year to verify income. The annual claim is due between January 1 and February 15. File by December 10 after missing February 15 and you get 90% of the exemption; file after December 10 and you get 85%.³ Revenue and Taxation Code Section 276 sets those late-filing reductions.⁶

Forget the annual renewal entirely and you don’t lose everything. You default to the Basic Exemption, which doesn’t require renewal. But the gap between tiers is large enough that February 15 belongs on the calendar.

Moving to a New Home

The exemption doesn’t follow you automatically. Two filings are required: a BOE-261-GNT with the assessor in the county of your old home to terminate the exemption there, and a new BOE-261-G with the assessor in the county of your new home. The exemption on the new property starts the day you move in; the old one ends the day it stops being your primary residence.³

Veterans moving between counties often forget one half of this. Delay filing on the new property and the late-filing reductions above apply, so handle both forms as soon as you close.

You Can Only Claim One Exemption Per Property

California allows one property tax exemption per property. A veteran who qualifies for the disabled veterans’ exemption cannot also claim the $4,000 basic veterans’ exemption or the standard homeowners’ exemption on the same home, even if a co-owner would independently qualify.³ The disabled veterans’ exemption is the most valuable option in every case, so there’s no scenario where picking another one makes sense.

1
California Department of Tax and Fee Administration. LTA 2025/014 – Disabled Veterans’ Exemption Increases for 2026
2
California Department of Tax and Fee Administration. Veterans’ Exemption
3
California Department of Tax and Fee Administration. Disabled Veterans’ Exemption
4
California Legislative Information. California Code Revenue and Taxation Code 205.5
5
California Department of Tax and Fee Administration. Claim for Disabled Veterans’ Property Tax Exemption – BOE-261-G
6
California Legislative Information. California Code Revenue and Taxation Code 276