California Disabled Veteran Property Tax Exemption Calculator

The statute’s starting figures are $100,000 for the basic exemption, $150,000 for the low-income exemption and $40,000 for the household income limit. Section 205.5 has them compounded each year by a California Consumer Price Index factor, and the Board of Equalization announces the new amounts in a Letter To Assessors. For the 2026 lien date the factor was 1.03065, and for 2027 it is 1.02888.

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

  “Applying this factor to the 2025 exemption amounts of $175,298 and $262,950 results in 2026 exemption amounts of $180,671 for the basic exemption and $271,009 for the low-income exemption. Applying this factor to the 2025 household income limit of $78,718 results in a 2026 household income limit of $81,131 for those claiming the low-income exemption.”

• For 2027 the Section 205.5 amounts are $185,889 for the basic exemption and $278,836 for the low-income exemption, with a household income limit of $83,474 for the low-income exemption.

  “Applying this factor to the 2026 exemption amounts of $180,671 and $271,009 results in 2027 exemption amounts of $185,889 for the basic exemption and $278,836 for the low-income exemption. Applying this factor to the 2026 household income limit of $81,131 results in a 2027 household income limit of $83,474 for those claiming the low-income exemption.”

• The larger exemption applies to an eligible veteran whose household income does not exceed the income limit; the amount and the limit are each as adjusted for the relevant assessment year.

  “The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (i), in the case of an eligible veteran whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (h).”

SB 296 was approved September 28, 2026 and adds Section 205.5.1 for property tax lien dates from January 1, 2027 to before January 1, 2032. For those years it replaces the 205.5 exemption, except where subparagraph (C) sends a property back to 205.5, and it is repealed January 1, 2032. The veteran test is the same as in 205.5: blind in both eyes, loss of the use of two or more limbs, or totally disabled (rated 100 percent, or compensated at 100 percent because of unemployability).

The $371,778 equals twice the 2027 basic exemption of $185,889 and the $83,474 equals the 2027 income limit in LTA 2026/019, and the statute says all three are "as adjusted for the relevant assessment year", so later years follow the 205.5 adjustments. That letter lists no adjusted figure for the $1,000,000, so this page uses $1,000,000 as written and says so. The Board of Equalization’s claim page saved for this review describes the 205.5 exemption and does not mention 205.5.1, and the Board’s claim page saved for this review describes the 205.5 exemption and does not mention 205.5.1. Ask your county assessor how 205.5.1 will be applied and which claim form to use.

Section 205.5.1(a)(2) contains only the care-facility rule. Its text does not include the disaster rule that Section 205.5 now has (see Who qualifies), and this page does not assume that rule carries over from 2027.

• In lieu of the Section 205.5 exemption, except as provided in subparagraph (C), for lien dates on or after January 1, 2027 but before January 1, 2032, 50 percent of the part of the full value that does not exceed $1,000,000, as adjusted for the relevant assessment year, is exempt if both of the following conditions are met: the property is the principal place of residence of the veteran (owned by the veteran, the veteran’s spouse or both), and the veteran meets the blind, limb or total disability test.

  “In lieu of the property exemption in Section 205.5, except as provided in subparagraph (C), for property tax lien dates occurring on or after January 1, 2027, but occurring before January 1, 2032, 50 percent of that part of the full value of the property that does not exceed one million dollars ($1,000,000), as adjusted for the relevant assessment year as provided in subdivision (i) of Section 205.5 shall be exempt from taxation if both of the following conditions are met:”

• For an eligible veteran whose household income does not exceed $83,474, as adjusted, the exemption is on 100 percent of the part of the full value that does not exceed $1,000,000, as adjusted.

  “In the case of an eligible veteran whose household income does not exceed the amount of eighty-three thousand four hundred seventy-four dollars ($83,474), as adjusted for the relevant assessment year as provided in subdivision (h) of Section 205.5, the exemption under subparagraph (A) shall be on 100 percent of that part of the full value of the property that does not exceed one million dollars ($1,000,000), as adjusted for the relevant assessment year as provided in subdivision (i) of Section 205.5.”

• The property shall instead be eligible for the Section 205.5 exemption if both of the following conditions are satisfied: the property does not exceed $371,778 of full value, as adjusted, and the household income of the eligible veteran exceeds $83,474, as adjusted.

  “The property shall instead be eligible for the property exemption pursuant to Section 205.5 if both of the following conditions are satisfied: (i) The property does not exceed three hundred seventy-one thousand seven hundred seventy-eight dollars ($371,778) of the full value, as adjusted for the relevant assessment year as provided in subdivision (i) of Section 205.5. (ii) The household income of the eligible veteran exceeds eighty-three thousand four hundred seventy-four dollars ($83,474), as adjusted for the relevant assessment year as provided in subdivision (h) of Section 205.5.”

• An exemption under 205.5.1 is in lieu of the veteran’s exemptions in the California Constitution, Section 205.5 and any other real property tax exemption to which the claimant may be entitled.

  “An exemption granted to a claimant pursuant to this section shall be in lieu of the veteran’s exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution, Section 205.5 of this code, and any other real property tax exemption to which the claimant may be entitled.”

• Section 205.5.1 remains in effect only until January 1, 2032, and as of that date is repealed.

  “This section shall remain in effect only until January 1, 2032, and as of that date is repealed.”

The home must be the principal place of residence and owned by the veteran, the veteran’s spouse, or both. If the veteran is confined to a hospital or other care facility, the home still counts as the principal residence unless it is rented or leased to a third party (a family member who lives there is not a third party). The veteran must have been discharged under other than dishonorable conditions and must also meet the service-period test in the statute’s definition of a veteran: service in time of war, or in time of peace in a campaign or expedition for which Congress issued a medal, or release from active duty in peacetime because of a service-connected disability, and a VA determination that the veteran is eligible for federal veterans’ health and medical benefits. The Board of Equalization says the 205.5 exemption is in lieu of the Veterans’ Exemption and the Homeowners’ Exemption, and that if you qualify it should be claimed instead of either of those two.

• The principal place of residence of a veteran is exempt on the part of its full value that does not exceed the adjusted $100,000 figure (the 2026 basic amount is $180,671), as adjusted for the relevant assessment year, if the veteran is blind in both eyes, has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service.

  “Property that constitutes the principal place of residence of a veteran, that is owned by the veteran, the veteran’s spouse, or the veteran and the veteran’s spouse jointly, is exempted from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (i), if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service.”

• A veteran is a person who is serving in or has served in and has been discharged under other than dishonorable conditions from the Army, Navy, Air Force, Marine Corps, Space Force or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans’ health and medical benefits. Section 205.5.1(c)(4)(A) uses the same definition.

  “A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans' health and medical benefits.”

• The Board of Equalization says the veteran must have served during one of the time periods listed in Revenue and Taxation Code section 205.5, subdivision (b)(1)(A).

  “The veteran must have served during one of the time periods listed in Revenue and Taxation Code section 205.5, subdivision (b)(1)(A).”

• Since October 10, 2025 (SB 663), Section 205.5 also treats a property as the veteran’s principal place of residence if a dwelling on it was completely destroyed in a disaster for which the Governor proclaimed a state of emergency and all of the following apply: it qualified as the principal residence before the disaster began, ownership has not changed since, the veteran intends to rebuild and live there when possible, and a veteran on the low-income exemption keeps meeting any annual filing requirement. Section 205.5.1(a)(2) contains only the care-facility rule; its text does not include the disaster rule, and this page does not assume it carries over from 2027.

  “A dwelling on the property was completely destroyed in a disaster for which the Governor proclaimed a state of emergency and all of the following apply:”

• Totally disabled means the VA or the military service rated the disability at 100 percent, or rated the disability compensation at 100 percent because the veteran is unable to secure or follow a substantially gainful occupation (individual unemployability).

  “being totally disabled means that the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.”

• The Disabled Veterans’ Exemption is more advantageous than the Veterans’ Exemption and the Homeowners’ Exemption, so if a claimant qualifies, it should be claimed instead of either of those two.

  “This Disabled Veterans' Exemption is a more advantageous exemption than both the Veterans' Exemption and the Homeowners' Exemption. Thus, if a claimant qualifies, the Disabled Veterans' Exemption should be claimed on the property instead of either of those two exemptions.”

A spouse who remarries no longer qualifies, regardless of age, according to the Board of Equalization. The BOE page lists the documents a surviving spouse attaches to the 205.5 claim (marriage certificate, death certificate or report of casualty, and, when the veteran did not qualify during life, proof that the death was service-connected).

From the 2027 lien date, 205.5.1 gives the unmarried surviving spouse the same amount under similar conditions, and adds that the property is the spouse’s principal place of residence only if it was the veteran’s principal place of residence when the veteran died, and that the veteran was a resident of California on January 1 of the year of death.

• Under 205.5 the unmarried surviving spouse’s principal residence is exempt up to the same adjusted amounts, provided that either the deceased veteran qualified for the exemption during their lifetime or the veteran died from a disease that was service connected as determined by the VA.

  “Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (i), in the case of a veteran who was blind in both eyes, had lost the use of two or more limbs, or was totally disabled provided that either of the following conditions is met:”

• An unmarried surviving spouse of a veteran who died from a service-connected injury or disease may be eligible even though the veteran was not eligible during life.

  “In the case of an unmarried surviving spouse of a veteran who died from a service-connected injury or disease, the unmarried surviving spouse may be eligible for the exemption even though the veteran was not eligible for the exemption during their lifetime.”

• Under 205.5.1, property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran only if the property was the principal place of residence of the veteran when they died.

  “Property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran only if the property was the principal place of residence of the veteran when they died.”

For the 2026 lien date, file Claim for Disabled Veterans’ Property Tax Exemption (BOE-261-G) with your county assessor (get the form from the assessor’s office or website). Attach proof of the disability, usually a VA letter, and proof that service was under other than dishonorable conditions, such as a DD-214. For the basic exemption you file once. For the low-income exemption you file every year, because the household income test is checked each year.

Filing late costs a share of the 205.5 exemption: 85 percent for a late initial claim, and for a late annual low-income claim 90 percent if filed from February 16 to December 10 and 85 percent after December 10. The percentage applies to the eligible exemption, the lesser of the amount and the value of the home. The calculator applies it for the 2026 lien date, and for 2027 only where 205.5 applies. Section 205.5.1 says nothing about late claims, so ask your assessor how a 2027 claim is handled.

Section 205.5.1 requires the claimant to give the county assessor documentation, including a letter from the VA or the military service showing the veteran’s disability rating.

• To receive the exemption the claimant shall provide the county assessor documentation, including a letter from the VA or the military service demonstrating the veteran’s disability rating, sufficient to demonstrate eligibility.

  “In order to receive the exemption provided in this section, the claimant shall provide the county assessor documentation, including a letter from the United States Department of Veterans Affairs or the military service from which the veteran was discharged demonstrating the veteran’s disability rating, sufficient to demonstrate the claimant’s eligibility for the exemption.”

• To receive 100 percent of the exemption from the date you qualify, file the initial claim within 90 days of the qualifying event or by the following January 1, whichever is later.

  “To receive 100 percent of the basic or low-income exemption as of the date the claimant or the property qualifies, the initial claim must be filed within 90 days of the date of the qualifying event (see below) or by the January 1 following the date of the qualifying event, whichever is later.”

• A late initial claim is eligible for 85 percent of the exemption for the initial qualifying year.

  “Claims filed after this period are eligible for 85 percent of the exemption for the initial qualifying year.”

• If filing for the first time for multiple prior years, 85 or 90 percent of the eligible exemption may be granted, depending upon the claimant’s filing date, and the exemption is prorated as of the date of qualification to the remainder of the fiscal year, so the first year’s amount can be lower than the full figure.

  “If filing for the first time for multiple prior years, 85 or 90 percent of the eligible exemption may be granted, depending upon the claimant's filing date. The exemption is prorated as of the date of qualification to the remainder of the fiscal year.”

• The basic exemption needs no annual filing; it continues until the claimant or the property no longer qualifies, and the assessor must be notified if there has been a change in eligibility.

  “Basic Exemption: There is no annual filing requirement for the basic Disabled Veterans' Exemption. After the basic exemption has been granted, the claimant will continue to receive the basic exemption on the property until the claimant, or the property, no longer qualifies. The assessor must be notified if there has been a change in eligibility for the exemption.”

• The low-income exemption requires annual filing so the assessor can check the household income limit; the claim must be filed between January 1 and February 15.

  “Low-Income Exemption: The low-income Disabled Veterans' Exemption requires annual filing to ensure that the claimant continues to meet the annual household income limit restriction. The claim form must be filed annually between January 1 and on or before February 15.”

• Annual claims filed after February 15 but on or before December 10 are eligible for 90 percent of the exemption for that year; claims filed after December 10 are eligible for 85 percent.

  “Annual claims filed after February 15, but on or before December 10 of the same year, are eligible for 90 percent of the eligible exemption for that year and claims filed after December 10 are eligible for 85 percent of the eligible exemption.”

• BOE-261-G must be used for the initial claim and for any annual filings the exemption requires.

  “BOE-261-G, Claim for Disabled Veterans' Property Tax Exemption, must be used when claiming the exemption, both for the initial filing and any subsequent annual filings required.”