Senator Archuleta authored SB 296 and chairs the Senate Military and Veterans Affairs Committee (Photo: Bob Archuleta)

California has expanded property tax exemption for qualifying Disabled Veteran homeowners after Gov. Gavin Newsom signed SB 296 on Sept. 28.

SB 296 increases the exemption available to Veterans who are rated 100% disabled because of a service-connected injury or disease. Veterans receiving benefits at the 100% rate through Total Disability based on Individual Unemployability, or TDIU, can also qualify. Certain unmarried surviving spouses are covered as well.

Beginning Jan. 1, 2027, qualifying homeowners can exempt 50% of the first $1 million of their home’s full value from property taxes. A qualifying home valued at $600,000, for example, would receive a $300,000 exemption.

The exemption is larger for lower-income households. Veterans and eligible surviving spouses with household income of $83,474 or less for the 2027 assessment year can exempt 100% of the first $1 million of their home’s full value. The income threshold and property-value limit can be adjusted in future years.

For comparison, the existing basic Disabled Veterans’ Exemption for 2027 would be $185,889. The existing low-income exemption would be $278,836 for qualifying households with income of $83,474 or less.

SB 296 also includes a safeguard for some Veterans with lower-valued homes. If a qualifying home has a full value of $371,778 or less and the Veteran’s household income is above the low-income limit, the homeowner can continue using the existing exemption instead of the new 50% calculation.

The exemption applies to a qualifying Veteran’s principal residence. Veterans and surviving spouses must provide their county assessor with documentation showing they meet the eligibility requirements, including proof of the Veteran’s disability rating. The law is scheduled to expire Jan. 1, 2032 unless lawmakers extend it.

More Veterans Bill Signed in 2026

SB 296 was one of several Veteran and military-related bills Newsom signed on Sept. 28.

AB 2219, known as the Faster Services for Veterans Act, changes how CalVet and County Veterans Service Offices coordinate benefits assistance. The law requires vacant County Veterans Service Officer positions to be filled within 12 months. It also calls for a statewide system by 2029 to distribute appointments, disability claims, appeals, and other work among county offices.

AB 2054 expands California Paid Family Leave eligibility for certain Military Families. It expands covered active-duty situations to include stateside missions, extended training, and certain National Guard or Reserve activations.

AB 2203 expands priority registration for students using the CalVet College Fee Waiver or federal GI Bill benefits. Beginning with the 2028-29 academic year, California State University campuses and community colleges that use priority enrollment systems must provide those students with priority registration. The University of California is requested to do the same.

AB 1346 protects in-state tuition eligibility for qualifying military dependents who leave college and later return. Eligible students can keep California resident tuition status even if their Service Member parent or spouse has transferred out of state or retired from active duty.

Author: Rikki Almanza

Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.