California Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax
The state benefits California gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.
California's main property tax break for veterans is the Disabled Veterans' Exemption. For the 2026 lien date it removes $180,671 of a home's assessed value, or $271,009 if household income is $81,131 or less. It covers veterans rated 100% disabled (or paid at the 100% rate for unemployability) and certain unmarried surviving spouses. For tax years 2025 through 2029, California lets taxpayers exclude up to $20,000 a year of military retirement pay or Survivor Benefit Plan annuity from income, if AGI is $125,000 or less ($250,000 or less for joint filers and surviving spouses). Qualifying disabled veterans also pay no registration or license fees on one vehicle with DV plates. (sources)
Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.
Property tax exemptions for veterans in California
| Benefit | Who qualifies | Amount | How to apply | Source |
|---|---|---|---|---|
| Disabled Veterans' Exemption (basic) | Veteran rated 100% disabled by the USDVA or military service, or paid at the 100% rate because of unemployability. Blindness in both eyes or loss of use of two or more limbs also qualifies. The veteran must have a discharge other than dishonorable. The home must be the principal residence. An unmarried surviving spouse qualifies if the veteran qualified, or if the veteran died of a service-connected injury or disease. No income limit. | $180,671 off the home's assessed value for the 2026 lien date ($175,298 in 2025). The amount is indexed every year to the California CPI under Revenue and Taxation Code section 205.5. | File form BOE-261-G (Claim for Disabled Veterans' Property Tax Exemption) with the county assessor. For the full first-year exemption, file within 90 days of the qualifying event or by the next January 1, whichever is later. The basic exemption does not need to be refiled each year. Report a loss of eligibility on form BOE-261-GNT. | California State Board of Equalization, Letter to Assessors No. 2025/014: Disabled Veterans' Exemption Increases for 2026 |
| Disabled Veterans' Exemption (low-income) | Same disability and residence rules as the basic exemption. Total household income must not exceed $81,131 for the 2026 lien date ($78,718 in 2025). | $271,009 off the home's assessed value for the 2026 lien date ($262,950 in 2025). Indexed every year to the California CPI. | File form BOE-261-G with the county assessor every year (the low-income exemption requires an annual claim). Filing between January 1 and February 15 gets 100% of the exemption. Filing from February 16 to December 10 gets 90%, and filing after December 10 gets 85%. | California State Board of Equalization, Disabled Veterans' Exemption |
Is military retired pay taxed in California?
| Treatment | Amount or limit | Source |
|---|---|---|
| Partially excluded. Military retirement pay is otherwise fully taxable for California residents. For taxable years beginning on or after January 1, 2025 and before January 1, 2030, qualified taxpayers may exclude up to $20,000 of federal retirement pay for service in the uniformed services, or of annuity payments received under a U.S. Defense Department Survivor Benefit Plan. | Up to $20,000 a year, tax years 2025-2029. Federal AGI must be $125,000 or less for an individual, or $250,000 or less for joint filers and surviving spouses. | ftb.ca.gov |
For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.
Other California veteran benefits
Vehicles and license plates
| Benefit | Who qualifies | Amount | Source |
|---|---|---|---|
| Disabled Veteran (DV) license plates: no registration or license fees, plus parking privileges | Veteran permanently disabled by an injury or disease incurred on active service, who meets one of these: (1) rated 100% by the USDVA or discharging service for a condition that substantially impairs mobility, (2) cannot move without an assistive device, (3) has lost use of one or more limbs, or (4) is permanently blind. | No vehicle registration or license fees on one vehicle owned by the veteran: a passenger vehicle, a motorcycle, or a commercial vehicle under 8,000 lbs unladen that is not used for hire, compensation or profit. Replacement plates, certificates and cards are not exempt. The plates also allow parking in disabled spaces, at blue curbs, at green curbs with no time limit, and free at on-street meters. Apply with form REG 256V. | dmv.ca.gov |
Common questions
Does California have a property tax exemption for disabled veterans?
California lists 2 veteran property tax benefits. The main one: Disabled Veterans' Exemption (basic). Who qualifies: Veteran rated 100% disabled by the USDVA or military service, or paid at the 100% rate because of unemployability. Blindness in both eyes or loss of use of two or more limbs also qualifies. The veteran must have a discharge other than dishonorable. The home must be the principal residence. An unmarried surviving spouse qualifies if the veteran qualified, or if the veteran died of a service-connected injury or disease. No income limit.. Amount: $180,671 off the home's assessed value for the 2026 lien date ($175,298 in 2025). The amount is indexed every year to the California CPI under Revenue and Taxation Code section 205.5. (California State Board of Equalization, Letter to Assessors No. 2025/014: Disabled Veterans' Exemption Increases for 2026).
How do I apply for the California veteran property tax exemption?
File form BOE-261-G (Claim for Disabled Veterans' Property Tax Exemption) with the county assessor. For the full first-year exemption, file within 90 days of the qualifying event or by the next January 1, whichever is later. The basic exemption does not need to be refiled each year. Report a loss of eligibility on form BOE-261-GNT. (California State Board of Equalization, Letter to Assessors No. 2025/014: Disabled Veterans' Exemption Increases for 2026).
Does California tax military retirement pay?
Partially excluded. Military retirement pay is otherwise fully taxable for California residents. For taxable years beginning on or after January 1, 2025 and before January 1, 2030, qualified taxpayers may exclude up to $20,000 of federal retirement pay for service in the uniformed services, or of annuity payments received under a U.S. Defense Department Survivor Benefit Plan. Amount or limit: Up to $20,000 a year, tax years 2025-2029. Federal AGI must be $125,000 or less for an individual, or $250,000 or less for joint filers and surviving spouses. (ftb.ca.gov).
What other benefits do veterans get in California?
Disabled Veteran (DV) license plates: no registration or license fees, plus parking privileges (dmv.ca.gov). Who qualifies and the amounts are in the tables above.
Sources
- California State Board of Equalization, Letter to Assessors No. 2025/014: Disabled Veterans' Exemption Increases for 2026
- California State Board of Equalization, Disabled Veterans' Exemption
- ftb.ca.gov
- dmv.ca.gov
Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.
Related
California senior property tax relief → California state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →