Veterans · Tax Savings · Homeownership
Veterans: You Could Pay ZERO Property Tax in California
If you're a California veteran with a 100% service-connected disability rating, state law may entitle you to a complete property tax exemption on your primary residence — saving thousands every year. Here's how it works.
Published July 10, 2026 · by Sam Silver
As a U.S. Army veteran and 22-year REALTOR here in Santa Clarita Valley, I meet veterans every week who have no idea this benefit exists. California offers one of the most generous property tax exemptions in the country for disabled veterans — and far too many who qualify are leaving thousands of dollars on the table every single year. Let's fix that.
In this guide, I'll break down exactly how California's disabled veterans' property tax exemption works, who qualifies (including veterans rated 100% individual unemployable), what it can save you on a Southern California home, and — critically — how to actually apply in Los Angeles, Ventura, Riverside, and San Bernardino counties.
California's Disabled Veterans' Property Tax Exemption
California provides two veterans' property tax exemptions under Revenue and Taxation Code. Understanding the difference matters:
Sec. 205.5 — Disabled Veterans' Exemption
Exemption: $175,298
For veterans with a 100% service-connected disability rating (or 100% individual unemployability). This is the big one — it can effectively eliminate your property tax entirely on a primary residence assessed up to the exemption amount.
Sec. 6110 — Veterans' Exemption
Exemption: $4,000
Available to all honorably discharged California veterans. Modest savings with strict asset limits ($5,000 for single veterans, $10,000 for married). Helpful, but far less impactful than the disabled veterans' exemption.
This post focuses on Section 205.5 — because for the veterans who qualify, it is genuinely life-changing. We're talking about zero property tax on your home, year after year.
Who Qualifies for Zero Property Tax?
You qualify for the full disabled veterans' exemption under Section 205.5 if all of the following are true:
You are a veteran (or the unmarried surviving spouse of a veteran) who served honorably in the U.S. armed forces.
You are a 100% service-connected disability rating from the U.S. Department of Veterans Affairs (VA).
You are a primary residence (the home where you live).
You are a own the property (or hold a lease-purchase interest).
What About 100% Individual Unemployability (TDIU)?
This is one of the most commonly missed qualifiers. If the VA has rated you at 100% individual unemployability (TDIU) — meaning you receive compensation at the 100% rate because your disabilities prevent you from maintaining substantially gainful employment — you also qualify. You do not need a literal 100% schedular rating. If your VA compensation check reflects the 100% rate, you're eligible.
Many veterans don't realize TDIU counts. If you're receiving 100% pay from the VA for any reason, contact your county assessor's office.
Low-Income Tier: An Even Larger Exemption
If your household income falls below $78,718 (2025 threshold), you may qualify for an enhanced exemption of $262,950 — effectively covering the assessed value of nearly every home in Southern California. This low-income tier requires annual re-verification.
What This Saves You in Real Dollars
California's effective property tax rate averages roughly 1.1% to 1.25% of assessed value. Here's what the exemption means for homes at typical Southern California price points:
Home Assessed at $500,000
$6,250
saved per year
~1.25% effective rate · ZERO property tax
Home Assessed at $750,000
$9,375
saved per year
~1.25% effective rate · ZERO property tax
Home Assessed at $1,000,000
$10,750
saved per year*
~1.08% effective rate · Saves ~87% of tax bill
*At assessed values above the $175,298 exemption, you pay tax only on the amount exceeding the exemption. Savings estimates use approximate 2025/2026 effective tax rates for Southern California counties and assume standard deductions. Actual amounts vary by county, special assessments, and bonded indebtedness. Consult your county assessor for exact figures.
What This Means for SCV Veterans
Here in Santa Clarita Valley, the median home value hovers around $750,000–$850,000 depending on the neighborhood. At those price points, a qualifying veteran could save $7,000 to $10,000+ every year on property taxes alone.
Over a 10-year ownership period, that's potentially $70,000 to $100,000+ kept in your pocket — money that stays with your family, goes toward retirement, or pays down principal faster.
And it stacks with other veteran benefits. You can use a VA home loan with zero down payment, pair it with the Homes for Heroes rebate, and now add zero property tax on top. That is a powerful wealth-building combination that most civilians don't have access to.
How to Apply — By County
The application process is straightforward, but it varies slightly by county. You'll file Form BOE-261-G (Claim for Disabled Veterans' Property Tax Exemption) with your county assessor's office. Here's what to know for the four Southern California counties I serve most:
Los Angeles County
Assessor's Office: (213) 974-3211
Website: assessor.lacounty.gov
In person: 500 W. Temple St., Los Angeles, CA 90012
Tip: LA County allows online filing through the L2R portal for some exemptions.
Ventura County
Assessor's Office: (805) 654-2181
Website: assessor.venturacounty.gov
In person: 800 S. Victoria Ave., Ventura, CA 93009
Tip: Ventura County has a dedicated disabled veterans' exemption page with downloadable forms and clear instructions.
Riverside County
Assessor's Office: (951) 275-3826
Website: rivcoacr.org
In person: 4080 Lemon St., Suite 200, Riverside, CA 92501
Tip: Riverside County accepts applications year-round but file by February 1 to avoid a supplemental assessment complication.
San Bernardino County
Assessor's Office: (909) 387-8308
Website: sbcounty.gov/assessor
In person: 110 W. Rialto Ave., San Bernardino, CA 92408
Tip: San Bernardino County has the largest geographic area in the U.S. — use the mail-in option if you're not near the downtown office.
What You'll Need to File
Form BOE-261-G (available on your county assessor's website or at the office).
VA disability rating letter showing 100% service-connected disability or 100% individual unemployability.
home ownership (deed, trust deed, or lease-purchase agreement).
government-issued photo ID (driver's license, military ID, or passport).
California residency (utility bill, vehicle registration, or voter registration at the property address).
5 Common Mistakes Veterans Make
Not Applying Because They Don't Think They Qualify
If you receive 100% VA compensation for any reason — including TDIU — you likely qualify. Don't assume you don't. Apply and let the assessor make the determination.
Filing Only Under §6110 Instead of §205.5
Some veterans file for the $4,000 veterans' exemption (§6110) and never realize the disabled veterans' exemption (§205.5) is available and far more valuable. Ask about both.
Missing the February 1 Deadline
While the exemption can be filed year-round, filing by February 1 ensures it applies to the current fiscal year's secured tax roll. Late filings may not take effect until the following year.
Not Re-Applying After a Refinance or Property Transfer
If you refinance, sell and rebuy, or transfer title (e.g., adding a spouse), you may need to re-file. The exemption is tied to ownership and occupancy. Check with your assessor after any major property change.
Forgetting to Update After a Rating Change
If your VA rating recently increased to 100% (or TDIU), you may not have filed for the exemption yet. The sooner you file, the sooner you start saving. You can't claim it retroactively beyond a limited window.
"I've been a U.S. Army veteran and a REALTOR for over two decades, and this is the benefit I see missed the most. Veterans who served this country, who carry the scars — visible and invisible — and who don't know they could be paying zero property tax on their own home. That's not just a missed tax break. That's money that should be in their family's pocket. If you're reading this and you have a 100% disability rating, call me. I'll walk you through it."
Frequently Asked Questions
Does this really eliminate my entire property tax bill?
For most homes assessed at or below $175,298 — yes, your property tax is completely eliminated. For homes assessed above that amount, you pay property tax only on the excess above the exemption. For example, on a home assessed at $750,000, you'd only owe tax on roughly $574,702 — a savings of more than $9,000 per year.
I'm rated 100% individual unemployability (TDIU) — do I qualify?
Yes. If the VA is paying you at the 100% rate due to individual unemployability, you qualify for the same exemption as a veteran with a 100% schedular rating. You do not need a literal 100% disability rating — you need to be receiving compensation at the 100% rate. Your VA award letter should show this clearly.
Can my surviving spouse continue the exemption?
Yes, in some cases. The unmarried surviving spouse of a qualifying veteran may continue to claim the exemption on the same property, as long as they do not remarry and the property remains their primary residence. The low-income tier requires annual re-verification; the basic exemption continues automatically.
Do I need to file every year?
For the basic exemption ($175,298): No. Once granted, it remains in effect without annual re-filing unless terminated. For the low-income exemption ($262,950): Yes, you must re-verify income annually. If your property changes ownership or you move, you'll need to file a new claim at your new address.
What's the deadline to apply?
You can file at any time during the year, but to have the exemption applied to the current fiscal year's secured tax roll, you should file by February 1. Late filings will generally take effect the following fiscal year. There is no penalty for late filing — you just wait longer for the savings.
Does this apply to investment properties or rental homes?
No. The exemption applies only to your primary residence — the home where you live. You cannot claim it on rental properties, vacation homes, or investment properties. You must own and occupy the home as your principal place of residence.
How does this interact with Proposition 13 or Proposition 19?
The disabled veterans' exemption is separate from and in addition to Prop 13/Prop 19 protections. It reduces the assessed value before the tax is calculated. For inherited properties, Prop 19 may affect the base year value, but the Section 205.5 exemption still applies to your primary residence. Your county assessor can explain how both interact for your specific situation.
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Bookmark this page or share it with a fellow veteran who may qualify. This benefit is real, it's available right now, and too many veterans don't know about it.
Questions? Talk to a Veteran Who's Been There.
Sam Silver is a U.S. Army veteran, a 22-year Santa Clarita Valley REALTOR, and your neighbor. If you have questions about the disabled veterans' property tax exemption, VA home loans, or buying or selling a home in SCV — he's here to help.
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Help a veteran in your life discover this tax benefit — it could save them thousands.
Service Before Self
I served in the U.S. Army, and I've spent 22 years serving Santa Clarita Valley families in real estate. Helping veterans maximize every benefit they've earned — from VA home loans to this property tax exemption to Homes for Heroes — is personal to me.
If you're a veteran in Santa Clarita, Los Angeles, Ventura, Riverside, or San Bernardino counties and you want to understand what benefits you qualify for — or if you're ready to buy or sell a home — let's talk. No sales pitch. Just a fellow veteran helping you navigate the process.
This article was written by Sam Silver for santaclaritaevents.com. Tax exemption amounts are based on the 2025 lien date ($175,298 basic / $262,950 low-income) as published by the California Board of Equalization. Amounts may be adjusted annually. This article is for informational purposes only and does not constitute tax or legal advice. Consult your county assessor, a qualified tax professional, or the California Department of Veterans Affairs (CalVet) for guidance specific to your situation. This is not intended as a solicitation if you are currently working with another real estate broker. All information is deemed reliable but not guaranteed and should be independently verified.
