HAHarvey Walden
18 hours agoDisabled Veterans' Exemption
Under Revenue and Taxation Code 205.5, any property real or personal that constitutes the principal place of residence of a disabled veteran, who has received a 100% service-connected disability rating or who has less than 100% but is compensated at 100% due to unemployability from the Veterans Administration is eligible for this exemption.
At this time, SB 296 has not passed and does not change California property tax exemptions. The Disabled Veterans' Property Tax Exemption remains the same, and the Assessor's Office must apply current state law. Some information online refers to federal benefits, which are separate from state property taxes.
To Qualify for the Disabled Veterans' Exemption, the following conditions must be met:
- You must be a veteran who, due to a service-connected injury or disease incurred in military service, is blind in both eyes, or has lost the use of two or more limbs, or is totally disabled. Totally disabled means the USDVA or the military service has rated the veteran's disability at 100 percent or the veteran's disability compensation at the 100 percent rate by reason of being unable to secure or follow a substantially gainful occupation (individual unemployability).
- You must be an unmarried surviving spouse of a deceased veteran who qualified for the exemption in their lifetime or died from a service-connected injury or disease or would have qualified for the exemption.
- The veteran must not have been discharged from military service under "dishonorable" conditions.
- You must own and occupy the dwelling as your principal residence as of January 1 of each year to qualify for the exemption for that year. If confined to a hospital or other care facility, the property continues to be eligible for exemption as long as it isn't rented out.
The exemption amount is set annually by the State Board of Equalization but can also be based on the value of the ownership interest in the property of the veteran and spouse if there is other non-qualified ownership interest. The date of enrollment of the exemption is the effective date of disability from the Veterans Administration, date of acquisition, or date of occupancy. The amount of the exemption may never exceed the assessed value of the claimant's residence.
Forms Available:
- Disabled Veterans' Property Tax Exemption BOE-261-G (For first filing and annual low income filing)
- Disabled Veterans' Household Income Worksheet
- Disabled Veterans' Exemption Change of Eligibility Report BOE-261-GNT
Completed claim forms and supporting documents should be mailed to the address on the claim form or submitted in person Monday-Friday 8am-5pm. Claim forms must have a wet signature only; no electronic signatures are accepted at this time in Nevada County.
Exemption Levels:
Basic Exemption: One-time filing with no income requirement. Required documents include completed BOE-261-G form, complete copy of Veteran's Rating Decision Letter from Department of Veterans' Affairs with effective date of 100% service-connected rating or unemployability, copy of DD214 showing discharge in other than dishonorable conditions, marriage certificate if married, and copy of Veteran's ID. An eligibility form is sent annually to report changes in disability rating, principal residence, or marital status.
Low-Income Exemption: Requires annual filing by February 15 each year. Initial claim must include supporting documents and an itemized household income worksheet reflecting income below the state-set limit. All household income sources must be reported including taxable and non-taxable wages, retirement, disability compensation, Social Security, gifts, inheritances, capital asset sales, life insurance proceeds, interest and dividends, and VA compensation. If the form and worksheet are not received by February 15, the exemption will be reduced to the basic level.
Surviving Spouse Requirements:
An unmarried surviving spouse may file or continue an exemption by filing a claim naming themselves as claimant and the deceased qualifying veteran, with supporting documents including marriage certificate, death certificate, DIC letter from Veterans Administration or Veteran's Rating Decision letter, DD214 (for first-time filers), and household income worksheet if applying for low-income exemption.
2026 Exemption Amounts and Income Limits:
- Basic Exemption: $180,671
- Low-Income Exemption: $271,009
- Income Limit for Low-Income Exemption: $81,131
Filing Timeline:
Qualified applicants must file by the end of the calendar year for the tax year in which they intend to seek relief. Claims received after this date are still eligible but at a reduced exemption amount. Low-income exemptions require annual filing by February 15; the basic exemption is one-time with no annual requirement after initial filing. California law allows for retroactive filings in some cases up to eight years total.
Tax Savings:
Property taxes are based on assessed value. The Disabled Veterans' Exemption reduces taxes by deducting the exemption amount from the assessed value before applying the tax rate. Generally, with the one percent statewide property tax rate, tax savings equal one percent of the exemption amount. Overall tax rates may be higher depending on local voter-approved bonds. For example, at a 1.17% tax rate, the basic exemption would save approximately $1,885 and the low-income exemption would save approximately $2,827.
For veterans without copies of ratings letters or discharge documents, contact Veterans Services at (530) 273-3396.
