Property Tax Relief in California: Homeowners', Senior and Veterans' Programs and How to Apply
· Buying Process
California's homeowners' exemption cuts $7,000 from a home's taxable value, and there are separate state programs for 100% disabled veterans, homeowners 55 and older who move, and homeowners 62 and older. This article covers who qualifies, which forms to use and the deadlines.
Many readers search for "US property tax relief," but property tax rules differ from state to state. This article covers California only. It walks through the state programs that matter most to owner-occupants, older homeowners and veterans, and which agency handles each one. This is general information. Outcomes depend on your own situation, so for tax or legal questions, please talk with a CPA or an attorney.
The Homeowners' Exemption
According to the California State Board of Equalization (BOE), the California Constitution provides a $7,000 reduction in taxable value for a qualifying owner-occupied home. The home must be the owner's principal place of residence on the lien date, January 1. The savings are modest, but if you qualify, it is worth claiming.
How to apply: the owner files once with the assessor in the county where the property is located. The form is BOE-266, which you can get from the county assessor. If you are filing on a property for the first time, you can file any time after you become eligible. To receive the full exemption for that year, file no later than February 15.
The Los Angeles County Treasurer and Tax Collector says the Assessor's office will mail you an application about three to four months after your deed is recorded. You can also apply on the Assessor's website. If you just bought a home, fill out the form and return it promptly when it arrives.
Tell the assessor when you no longer qualify: people who receive the Homeowners' Exemption are responsible for notifying the assessor once they are no longer eligible. The BOE says December 10 is the last day to end the exemption without a penalty, and the assessor should have your notice by then. If the home is no longer your principal residence, take care of this early.
Taking Los Angeles County as an example, the Treasurer and Tax Collector says that under state law, all property tax bills are mailed no later than November 1. The first installment is due November 1 and becomes delinquent at the close of business on December 10. The second installment is due February 1 and becomes delinquent at the close of business on April 10. An exemption lowers the bill, but paying on time is still the owner's responsibility.
The Disabled Veterans' Exemption
This exemption reduces the property tax on the principal residence of qualified veterans who, because of a service-connected injury or disease, have been rated 100% disabled or are paid at the 100% rate because they cannot work. The unmarried surviving spouse of a qualified veteran may also claim it.
There is a basic exemption and a low-income exemption. The basic exemption, also called the $100,000 exemption, is open to all qualifying claimants, and the amount is compounded each year by an inflation factor. The low-income exemption, also called the $150,000 exemption, is for claimants whose annual household income is at or below a set limit. The basic exemption requires a one-time filing. The low-income exemption must be filed every year to confirm that the claimant still meets the income limit.
The form is BOE-261-G. It is used for the first filing and for any annual filings that follow. The BOE notes that this exemption is worth more than the Veterans' Exemption or the Homeowners' Exemption. No other property tax exemption can be granted on a home that receives the Disabled Veterans' Exemption, so you cannot also claim the Homeowners' Exemption on it.
Keep in mind that these exemptions apply only to ad valorem property taxes, meaning taxes based on property value. Direct levies, special taxes and special assessments are not based on assessed value, are not property taxes under the law, and are not reduced by an exemption.
Veterans without a disability rating can look at the general Veterans' Exemption. According to the BOE, a veteran who owns limited property ($5,000 or less if single, $10,000 or less if married) may qualify for it, and it exempts up to $4,000 of value.
Age 55 and Older: Moving Your Tax Base Under Proposition 19
For older homeowners, the biggest worry about moving is often that the new home will be reassessed at market value. Proposition 19's base year value transfers took effect April 1, 2021. According to the BOE, Proposition 19 allows three transfers for homeowners who are over age 55 or physically and permanently disabled. The Orange County Assessor also explains that an eligible homeowner may transfer the taxable value of their home to a replacement property anywhere in California up to three times.
The main conditions: the replacement home must become your principal residence within two years of selling the original home. The original home must be eligible for the Homeowners' Exemption or the Disabled Veterans' Exemption either at the time of sale or within two years of buying the replacement. You must meet at least one of the qualifications on the date the original home is sold.
If you buy the new home first, the BOE says the base year value can still transfer as long as one transaction occurs on or after April 1, 2021 and the original home is sold within two years of buying the replacement. Be aware, though, that you pay property tax on the new home's full market value from the purchase date until the sale date, and that amount will not be refunded.
If the replacement home is worth more than the adjusted market value of the original home, you can still transfer your base year value, but the difference is added on top of it.
For homeowners 55 and older, the claim form is BOE-19-B. File it within 3 years of buying the new home or finishing its construction.
Age 62 and Older: Property Tax Postponement (PTP)
This program postpones your taxes rather than reducing them. The Property Tax Postponement program, run by the State Controller's Office (SCO), lets homeowners who are at least 62, blind or disabled, and who meet income, equity and other requirements, put off paying property tax on their primary residence. The Controller has announced that the 2026-2027 filing period is open. Check the State Controller's Office for the current income limit.
Key rules: you need at least 40% equity in the home, and a refinance or home equity loan may push you below that line. If you already have a reverse mortgage, you are not eligible. Applications are accepted from October 1 to February 10, reviewed in the order received, and approved on a first-come, first-served basis. Participants must reapply every year.
Postponed taxes must eventually be repaid. Repayment is secured by a lien on the property, and the interest rate is 5% per year. Postponed taxes and interest come due when the homeowner moves or sells, transfers title, defaults on a senior lien, refinances, takes out a reverse mortgage, or passes away. Also, while your application is pending, the State Controller is not responsible for any fees, interest or penalties the county may charge if your payment is late.
Getting Started
First, check your property tax bill to see whether the Homeowners' Exemption is already applied. If it isn't, contact the assessor in the county where the property is located. Veterans, owners 55 and older planning a move, and seniors thinking about postponement face more detailed rules. Confirm your eligibility directly with the county assessor or the State Controller's Office, and consult a CPA or an attorney when needed.
Sources (checked 2026-11-13: each fact above was checked against the text of these official pages)
[1] Homeowners' Exemption https://www.boe.ca.gov/proptaxes/homeowners_exemption.htm
[2] Secured Property Taxes Frequently Asked Questions - Treasurer and Tax Collector https://ttc.lacounty.gov/secured-property-taxes-frequently-asked-questions/
[3] Disabled Veterans' Exemption https://www.boe.ca.gov/proptaxes/dv_exemption.htm
[4] Survey Topic - Exemptions https://www.boe.ca.gov/proptaxes/general-exemptions/
[5] Veteran's Tax Topic https://boe.ca.gov/industry/veterans.htm
[6] Exemptions https://www.boe.ca.gov/proptaxes/homeexem.htm
[7] Proposition 19 - Board of Equalization https://www.boe.ca.gov/prop19/
[8] Transferring Base Year Value | Orange County Assessor Department https://www.ocassessor.gov/tax-saving-programs/savings-seniors-replacement-home
[9] Reappraisal Exclusion for Seniors, Victims of Natural Disaster, and Severely Disabled | Sierra County, CA - Official Website https://www.sierracounty.ca.gov/375/Reappraisal-Exclusion-for-Seniors-Victim
[10] Press Releases https://www.sco.ca.gov/eo_pressrel_20032.html
[11] Press Releases https://www.sco.ca.gov/eo_pressrel_27647.html
[12] Frequently Asked Questions https://www.sco.ca.gov/ard_ptp_faq.html
[13] Property Tax Postponement Fact Sheet https://www.sco.ca.gov/ardtax_fact_sheet.html
[14] Press Releases https://www.sco.ca.gov/eo_pressrel_17714.html
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