Senior, Veteran and Disability Property Tax Relief in California

Homeowners at least 55 years old (or severely and permanently disabled) may transfer the taxable (base year) value of their principal residence to a replacement residence anywhere in California, up to three times, under Proposition 19 (effective April 1, 2021). The replacement must be bought or built within two years of selling the original home; if the replacement is worth more than the original, the difference is added to the transferred value. Claims must be filed with the county assessor within three years of buying or completing the replacement home.

The disabled veterans' exemption applies to the principal residence of a veteran rated 100% disabled or compensated at the 100% rate due to unemployability, blind in both eyes, or who has lost the use of two or more limbs, and in qualifying cases to an unmarried surviving spouse (for example, when the veteran died from a service-connected injury or disease). For the January 1, 2026 lien date, the basic exemption is $180,671 and the low-income exemption is $271,009, with a household income limit of $81,131 for the low-income exemption; amounts are adjusted annually for inflation. File Form BOE-261-G with the county assessor. The basic exemption is a one-time filing; the low-income exemption requires an annual filing (full amount if filed January 1 to February 15, 90% if filed by December 10, 85% after). An initial claim filed within 90 days of the qualifying event, or by the next January 1 if later, receives 100%.

Severely and permanently disabled homeowners may transfer the base year value of their principal residence to a replacement home (Proposition 19). New construction that makes an existing structure more accessible to a physically disabled person may be excluded from reassessment (claim filed with the county assessor).

Property substantially damaged or destroyed by a disaster may be reassessed under the county's disaster relief ordinance; claims go to the county assessor within the period set by the ordinance or within one year of the damage, whichever is later. A principal residence substantially damaged or destroyed by wildfire or natural disaster may have its taxable value transferred to a replacement residence anywhere in California bought or built within two years of selling the damaged home. Parent-child (and some grandparent-grandchild) transfers of a family home that remains the transferee's principal residence can be excluded from reassessment, subject to a value cap.