CA Veteran Tax Benefits
California offers significant tax benefits for veterans — especially those with a service-connected disability. Property tax exemptions, vehicle registration waivers, and income tax exclusions.
Property Tax Exemptions
Basic Veterans' Exemption
Up to $4,000 property tax exemption for veterans with honorable discharge and qualifying service. Must be a CA resident on lien date (January 1).
Disabled Veterans' Exemption (100% Rated)
Basic Exemption
~$161,083
Regardless of income. One-time filing.
Low-Income Exemption
~$241,627
Household income below ~$76,761. Annual filing by Feb 15.
Eligible: Veterans rated 100% disabled or compensated at 100% due to unemployability. Unmarried surviving spouses also qualify. Required docs: DD-214 + VA rating decision letter.
Pending Legislation
SB 296 — Full Property Tax Exemption
Would create a full property tax exemption (not just partial) for 100% disabled veterans' principal residence. Applicable for lien dates Jan 1, 2026 through Jan 1, 2036. Includes unmarried surviving spouses.
Status: Retained in suspense file as of July 2025. We're monitoring and will update when status changes.
SB 56 — Exclude VA Disability from Income
Would exclude service-connected disability payments from “household income” for the low-income exemption threshold. Currently, VA disability payments count against the ~$76,761 limit — this bill would fix that.
Status: In committee as of July 2025.
DV License Plates & Registration
Disabled veterans who meet mobility-impairment criteria are exempt from ALL vehicle registration and license fees for one vehicle. DV plates also provide disabled parking privileges (blue curbs, green curb zones with no time limit).
Qualifications: 100% disability rating with substantial mobility impairment, loss of limb use, or permanent blindness — caused by active-service injury/disease.
Required: REG 256A form + VA PCGL LTR 112 letter + medical certification.
Military Retired Pay Exclusion
Starting tax year 2025, California excludes $20,000 of military retired pay from state income tax.
Income limit: up to $125,000 (single) or $250,000 (joint).
Also applies to SBP, RCSBP, and RSFPP annuity payments.
Sunsets January 1, 2030 unless extended.
Find Your Benefits
Answer a few questions — we'll identify which benefits apply to you.
Veteran Status
Most CA veteran tax benefits require residency on the lien date (January 1).