The Homestead Exemption in California
Who qualifies for the California homestead property tax exemption, how much it saves, and how and when to apply.
Short answer: The California Constitution provides a $7,000 reduction in the taxable value of a qualifying owner-occupied home (the homeowners' exemption). California State Board of Equalization, Homeowners' Exemption; BOE Publication 29, California Property Tax: An Overview (March 2025)
| Homestead exemption | The California Constitution provides a $7,000 reduction in the taxable value of a qualifying owner-occupied home (the homeowners' exemption). The home must have been the owner's principal place of residence on the lien date, January 1. Rentals and vacation homes do not qualify. The state reimburses local agencies for the lost revenue. Publication 29: https://www.boe.ca.gov/proptaxes/pdf/pub29.pdf |
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| How to apply | File one claim, Form BOE-266 (Claim for Homeowners' Property Tax Exemption), with the county assessor where the property is located; forms come from the county assessor. It is a one-time filing: once granted, the exemption continues, but the owner must notify the assessor when no longer eligible. December 10 is the last day to terminate the exemption without penalty. |
| Application deadline | First-time claimants should file by February 15 to receive the full exemption for that year. A claim filed after February 15 and by December 10 receives 80% of the homeowners' exemption. 80% late-filing rule: https://www.boe.ca.gov/proptaxes/pdf/pub29.pdf |
| Limits on assessment increases | Under Proposition 13 (Cal. Const. art. XIII A), property is reassessed to market value only on a change in ownership or completion of new construction (the base year value), and annual increases in the base year value are generally limited to no more than 2% for inflation. The general tax rate is 1% of taxable value, plus rates for voter-approved debt. |
More California property tax & homestead exemptions
- Senior, Veteran and Disability Property Tax Relief in California
- Appealing Your Property Tax Assessment in California
- All California property tax & homestead exemptions rules
FAQ
What is the homestead exemption in California?
The California Constitution provides a $7,000 reduction in the taxable value of a qualifying owner-occupied home (the homeowners' exemption). The home must have been the owner's principal place of residence on the lien date, January 1. Rentals and vacation homes do not qualify. The state reimburses local agencies for the lost revenue.
How do you apply for a homestead exemption in California?
File one claim, Form BOE-266 (Claim for Homeowners' Property Tax Exemption), with the county assessor where the property is located; forms come from the county assessor. It is a one-time filing: once granted, the exemption continues, but the owner must notify the assessor when no longer eligible. December 10 is the last day to terminate the exemption without penalty.
When is the deadline to apply for a homestead exemption in California?
First-time claimants should file by February 15 to receive the full exemption for that year. A claim filed after February 15 and by December 10 receives 80% of the homeowners' exemption.
How much can a home's assessed value go up each year in California?
Under Proposition 13 (Cal. Const. art. XIII A), property is reassessed to market value only on a change in ownership or completion of new construction (the base year value), and annual increases in the base year value are generally limited to no more than 2% for inflation. The general tax rate is 1% of taxable value, plus rates for voter-approved debt.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.