09/29/2026
SB 296 is officially law. This is a big win for California’s disabled veterans and their families. 🇺🇸
Governor Newsom signed it September 28, 2026. Here’s what changes:
Starting with the January 1, 2027 lien date, eligible homeowners can receive:
✅ A 50% exemption on the first $1 million of their home’s taxable value.
A 100% exemption on that first $1 million if household income is $83,474 or less.
Dollar limits adjust for inflation. Some lower-value homes keep the existing exemption instead. This expansion covers 2027–2031 lien dates and expires January 1, 2032 unless extended.
Who qualifies?
Veterans with a 100% service-connected disability, including qualifying veterans paid at 100% through individual unemployability. Service-connected blindness in both eyes or loss of use of two or more limbs can also qualify, as can certain unmarried surviving spouses.
The home must be your primary residence.
Being rated 100% doesn’t automatically qualify you for the full exemption. Household income matters, and VA disability benefits count toward that income test—even though they’re tax-free.
What could this mean in dollars?
On a $600,000 assessed value, using ONLY the 1% base tax:
• 50% exemption = $3,000/year saved.
• 100% exemption = $6,000/year saved.
That’s $250–$500 a month compared with NO exemption. Additional savings are smaller if you already receive an exemption.
Mello-Roos, special assessments and other direct charges can remain.
“100% exemption” doesn’t always mean a $0 tax bill.
Existing homeowners can benefit too. Contact your county assessor about claiming it with your VA documentation and required income verification. It replaces—not stacks with—your existing exemption. Have your lender confirm how and when it can affect your payment and qualification.
If you’re a 100% disabled veteran and buying a home has been on your mind, this could be a major opportunity to revisit the numbers. You could save thousands annually, depending on your eligibility and the property.
