Property Tax Exemptions in California: Everything You Need to Know
Owning property in California can come with expensive tax property obligations, but did you know that there are exemptions available that could help reduce your property tax burden? In this blog post, we provide you with an overview of property tax exemptions available in California, who qualifies, and how to apply. So, let's dive in and explore how you may be able to save on your property taxes!
California Homeowner Exemption
The CA Homeowner Exemption, also known as a homestead exemption, was enacted in 1968 to provide a tax break for owner-occupied principal places of residence. Millions of California homeowners currently take advantage of this program to reduce their property tax bill. Qualification is relatively straightforward.
Who qualifies?
- You must be the owner or co-owner of a property
- You must live in the property as your principal place of residence (more than 180 days during the year), and occupied the property as your principal residence on January 1st of the tax year
What is the benefit?
- The exemption reduces the assessed value of your home by $7,000 for property tax purposes
- Depending on your county, this reduces your tax bill by ~$85 each year
Senior Exemption
Certain counties in California offer property tax exemptions for seniors. These exemptions vary by county, and typically allow a senior to avoid paying school-specific taxes, with the logic that they will not take advantage of these services. For example, San Francisco County offers a property tax exemption for seniors:
Who qualifies for San Francisco's senior exemption?
- You must be at least 65 years of age by June 30, 2024
- You must be residing in the property as your principal residence
- You must be the owner of your residence
What is the benefit?
- Seniors are not required to pay ad-valorem school taxes
- This reduces your tax bill by over $650 each year
You can find out if your county offers property tax exemptions for seniors by calling your tax assessor's office, or calling a Parcel property tax specialist.
Veteran Exemptions
In addition to the homeowner and senior exemptions, California offers two state-wide property tax exemptions for veterans. The CalVet Veterans Exemption is a reduction in taxes for all veteran homeowners. However, you cannot apply for both the homeowner exemption and the CalVet Veterans Exemption, and the Veterans Exemption is less than the homeowner exemption, so it tends to not be utilized.
However, there is a large, state-wide exemption available for disabled veterans.
Who qualifies?
- You must be either 1) blind in both eyes, 2) lost the use of 2 or more limbs, or 3) were totally disabled as a result of injury or disease incurred in military service
- You must live in the property as your principal place of residence.
- Your discharge from military service must not have been dishonorable discharge
- The claimant for the exemption may be the disabled veteran or the unmarried surviving spouse of the veteran
What is the benefit?
- Depending on your level of income, this exemption can reduce the assessed value of your home by up to $240,000 for property tax purposes
- Depending on your county, this reduces your tax bill by ~$2,400
How do I apply for these property tax exemptions?
If you believe you qualify for any of the above exemption, there are two ways to apply:
- File manually: Typically the required forms can be found with your county assessor's office. You will need to fill out, sign, and mail in the correct paperwork to receive your exemption.
- File automatically with Parcel: You can call one of our property tax specialists who will automatically file your paperwork with you on your behalf. The process typically takes less than 5 minutes.
Questions? We're here to help. Sign up for a free 15-minute consultation with one of our property tax specialists to help you lower your property taxes in California.
