If you're a California Veteran homeowner rated 100% disabled by the VA, you could be saving thousands of dollars annually on property taxes through an exemption you might not know exists. California's Disabled Veterans' Exemption can reduce your home's assessed value by up to $262,950 for 2025 if you meet income requirements, translating to significant annual tax savings.
If you qualify, understanding how to apply can put money back in your pocket every year.
How California's Disabled Veterans Property Tax Exemptions Work
The Disabled Veterans' Exemption has two tiers based on your household income, both reducing the assessed value of your principal residence. For 2025:
- Basic exemption: $175,298 reduction for all qualifying 100% disabled Veterans
- Low-income exemption: $262,950 reduction if household income is below $78,718
The low-income tier simply provides a higher benefit level for Veterans who meet the income threshold.
Who Qualifies for the Disabled Veterans' Exemption
The Disabled Veterans' Exemption applies to your principal residence and requires meeting specific service and disability criteria.
Service and Disability Requirements:
You must have served in the U.S. military and received a discharge under conditions other than dishonorable. Qualifying service includes:
- Service during wartime, OR
- Service during peacetime in a campaign or expedition for which Congress issued a medal, OR
- Release from active duty during peacetime due to a service-connected disability
Your VA rating must show one of the following:
- 100% service-connected disability rating
- Compensation at the 100% rate due to individual unemployability (TDIU)
- Blindness in both eyes (visual acuity of 5/200 or less)
- Loss of use of two or more limbs
If the VA has rated you at 100% disabled, county assessors accept this rating without requiring additional medical documentation. An 80% or 90% rating doesn't qualify, even though you're severely disabled. The law requires 100% for this exemption.
Residence and Ownership Requirements:
The property must be your principal residence. You may own it individually, jointly, or via your spouse. Temporary stays in hospitals or care facilities do not affect eligibility, as long as the property is not rented out.
Surviving Spouse Eligibility:
An unmarried surviving spouse of a qualifying disabled Veteran may claim the exemption. This applies whether the Veteran qualified during their lifetime or died from a service-connected cause. A surviving spouse must occupy the home as their principal residence to remain eligible.
How to Apply: Step-by-Step Guide
Applying for California's property tax exemptions requires gathering documents and filing with your county assessor.
Step 1: Identify Your Exemption
- Disabled Veterans' Exemption (basic or low-income): For 100% disabled Veterans
- Standard Veterans' Exemption: Only if you don't own a home and meet asset limits
Step 2: Get the Correct Forms
Contact your county assessor's office. Most counties provide forms on their websites.
Step 3: Understand Filing Deadlines
- Basic Disabled Veterans' Exemption: File between the date you qualify and the following January 1, or within 90 days of qualification. Late filing reduces the first year's exemption to 85%.
- Low-income exemption: Refile annually between January 1 and February 15 to confirm income eligibility. Missing the deadline drops you to the basic exemption for that year.
- Standard Veterans' Exemption: Annual filing by February 15 is required.
Step 4: Gather Required Documentation
- VA rating letter showing 100% disability or TDIU
- DD-214 or other proof of discharge
- Proof of ownership and principal residence (deed, property tax bill)
- Household income documentation for low-income claims
- Surviving spouses: marriage certificate, death certificate, and proof of service-connected death if applicable
Common Mistakes That Cost Veterans Money
There are a few missteps that commonly cost Veterans money.
Missing the Initial Filing or Renewal Deadlines
Filing after the optimal deadline costs you money. Late initial filings reduce your first year's exemption to 85% instead of 100%. For the low-income exemption, missing the February 15 annual deadline drops you to the basic level.
Failing to Report Changes
If you move, sell your home, or your eligibility changes (like a surviving spouse remarrying), you must notify your county assessor. Failing to report ineligibility can trigger back taxes, penalties, and interest. Your county assessor should mail you annual notices to verify your continued eligibility. Respond to these notices.
Assuming Automatic Enrollment
Your VA rating doesn't automatically trigger the property tax exemption. You must file a claim with your county assessor. Getting your 100% VA rating is just step one; applying for the exemption is step two.
Not Checking Retroactive Rights
If the VA took years to process your disability rating, you might be entitled to retroactive exemptions. Under Revenue and Taxation Code section 276.1, if you file within 90 days of receiving a delayed disability rating (or by the next January 1, whichever is later), you can receive refunds of taxes paid during the period from your rating's effective date forward, subject to an eight-year statute of limitations.
Refund amounts vary by county based on the property’s assessed value at the time.
Key Resources
California State Board of Equalization publishes annual exemption amounts, income limits, and statewide program rules. This is your source for current-year figures.
Your County Assessor's Office administers these programs locally. Find contact information on the Board of Equalization county contacts page. County assessors provide forms, answer questions about your specific situation, and process your applications.
California Department of Veterans Affairs (CalVet) offers general information about property tax exemptions and connects Veterans with local resources. CalVet operates county Veteran service offices throughout California that can help you navigate the application process.
For more information about VA home loans in general, check out these other topics.
FAQs
Can I get the Disabled Veterans' Exemption if I'm rated 90% disabled?
No. The exemption requires a 100% disability rating or compensation at the 100% rate due to unemployability.
What if I move to a new house in California?
You must file a new claim for your new principal residence and notify the assessor at your former home that the exemption should terminate.
Does my VA disability compensation count as income for the low-income exemption?
Yes. All VA benefits, including disability compensation, count as household income when determining eligibility for the low-income exemption tier.
Can my spouse and I both get the exemption on the same house?
If both of you are 100% disabled Veterans living in the same home you co-own, you each receive the exemption based on your ownership share. The total exemption cannot exceed the home's assessed value, but two qualifying Veterans can each claim their portion.
What happens if I get the exemption and then my income goes above the limit?
For the low-income exemption, you must file annually to verify income eligibility. If your income exceeds the limit in any year, you drop to the basic exemption level ($175,298 instead of $262,950 for 2025). You don't lose the exemption entirely; you just receive the lower basic amount. If your income drops below the threshold in a future year, you can reapply for the low-income tier.
