California Property Tax Exemption

California offers several property tax exemptions designed to reduce a property’s assessed value, which in turn lowers the annual property tax bill.

These exemptions are especially beneficial for homeowners, veterans, nonprofit organizations, and qualifying institutions.

It is important to note that property tax exemptions apply only to the ad valorem portion of the tax—that is, taxes based on the assessed value of the property.

They do not reduce special assessments or direct charges, such as voter-approved bonds, parcel taxes, or fees for local services.

The most commonly claimed exemption is the Homeowners’ Exemption, which applies to an owner-occupied primary residence.

Key California Property Tax Exemptions

Homeowners’ Exemption

• Benefit: Reduces the taxable value of a primary residence by $7,000, resulting in an annual tax savings of approximately $70, depending on the local tax rate.
• Eligibility Requirements: You must own and occupy the property as your principal place of residence as of January 1 of the tax year. Only one homeowners’ exemption may be claimed per owner.
• Application Details: A one-time claim form must be filed with the county assessor. Once approved, the exemption generally remains in effect unless ownership or occupancy changes.

Disabled Veterans’ Exemption

Benefit: Provides a substantially larger assessed value reduction than the Homeowners’ Exemption. Two exemption levels are available:

• Basic exemption
• Low-income exemption

Exemption amounts are adjusted annually for inflation (for example, the basic exemption was approximately $172,000 in 2022).

Eligibility Requirements

The veteran must be:

• 100% disabled due to service-connected injuries, or
• Blind in both eyes, or
• Have lost the use of two or more limbs.
• The property must be the claimant’s principal residence.

Important Limitation: This exemption cannot be combined with the Homeowners’ Exemption.

Veterans’ Exemption

• Benefit: Reduces the assessed value of qualifying property by up to $4,000.
• Eligibility Requirements: The veteran must have served during specific qualifying war or campaign periods.

Strict income and property value limits apply: Total property value may not exceed $5,000 for single veterans or $10,000 for married veterans.

Note: This exemption is less commonly claimed due to its narrow eligibility criteria.

Welfare, Religious, and Charitable Exemptions

Benefit: Fully or partially exempts property used exclusively for religious, charitable, scientific, hospital, or educational purposes from property taxation.

Eligibility Requirements:

• The property must be owned and used for qualifying nonprofit purposes.
• The organization must obtain an Organizational Clearance Certificate from the California State Board of Equalization (BOE).
• Annual exemption claims must be filed with the county assessor.

How to Apply for a Property Tax Exemption

To receive any California property tax exemption, you must file a claim with the county assessor’s office in the county where the property is located.

• Application Methods: Many county assessors now offer electronic or online filing, allowing homeowners and organizations to submit exemption claims digitally. Paper forms are also available for mail or in-person submission.
• Where to Find Forms: Your local county assessor’s office. The California State Board of Equalization (BOE) website
• Fees: There is no fee to apply for the Homeowners’ Exemption.
• Timing Matters: Filing by the applicable deadline ensures the exemption applies to the current tax year and avoids reduced benefits for late claims.

Final Tip

Filing electronically—when available—is often the fastest and most convenient option, providing confirmation of submission and reducing processing delays. Homeowners and organizations are encouraged to check their county assessor’s website for online filing options and deadline reminders.