California Disabled Veterans Property Tax Exemption 2027: What SB 296 Means for Veteran Homeowners

If you are a 100% service-connected disabled veteran living in California, there is an important property tax change you should know about.

On September 28, 2026, California Governor Gavin Newsom signed SB 296, legislation expanding California's Disabled Veterans' Property Tax Exemption.

For disabled veteran homeowners in Temecula, Murrieta, Menifee, Winchester, French Valley, Riverside County and throughout California, this could mean a significant change in the cost of owning your home.

Let's break it down in simple terms.

What Is the California Disabled Veterans Property Tax Exemption?

California already has a property tax exemption for certain disabled veterans.

The exemption reduces the amount of a veteran's principal residence that is subject to property tax. It doesn't change the purchase price of the home. Instead, it reduces the taxable assessed value used to calculate property taxes.

To qualify under the existing program, a veteran generally must have a 100% service-connected disability rating or be compensated by the VA at the 100% rate because of unemployability. Certain unmarried surviving spouses may also qualify.

What Was the Property Tax Exemption Before SB 296?

This is where the change becomes easier to understand.

For the 2026 lien date, California's basic Disabled Veterans' Exemption is $180,671.

There is also a low-income exemption of $271,009 for qualifying households. For 2026, the household-income limit for that exemption is $81,131. These amounts have historically been adjusted for inflation.

What Does SB 296 Change in 2027?

SB 296 significantly expands California's property tax relief for qualifying disabled veteran homeowners.

Instead of simply exempting the previous fixed amount of assessed value, the new law expands the exemption for qualifying disabled veterans.

This is particularly important because California home values can be considerably higher than the existing exemption amounts.

The new law takes effect beginning with the January 1, 2027 lien date.

The Governor's office described SB 296 as an expansion of the Disabled Veterans' Property Tax Exemption intended to help disabled veterans remain in their homes.

Does This Apply to Any Property a Veteran Owns?

No.

The California Disabled Veterans' Property Tax Exemption generally applies to the qualifying veteran's principal place of residence.

In other words, this is designed for the home you live in—not simply any investment property or second home you may own.

What About Serviving Spouses?

Certain unmarried surviving spouses of qualifying disabled veterans may also be eligible for California's Disabled Veterans' Property Tax Exemption.

Because eligibility depends on the individual circumstances, surviving spouses should contact their County Assessor to determine whether they qualify.

What Should California Disabled Veterans Do Next?

If you think you may qualify, don't rely solely on information you see on social media—including mine.

Contact your County Assessor's Office and ask specifically about the Disabled Veterans' Property Tax Exemption and the changes under SB 296 for 2027.

For Riverside County homeowners, that means checking with the Riverside County Assessor-County Clerk-Recorder for information about your individual property and eligibility.

Your county assessor is ultimately the appropriate resource for determining how the exemption applies to your particular property.

If you're a veteran homeowner or VA homebuyer in Temecula, Murrieta, Menifee, Winchester or the surrounding Temecula Valley and have questions about the real estate side of homeownership, feel free to reach out.

And if you know a disabled veteran who owns a home in California, please share this information with them.