Bottom line: SB 296 creates a property tax exemption on the primary residence of qualifying 100% disabled veterans (and qualifying unmarried surviving spouses). It is not a grant, not a mortgage program, and not a sales-tax break. It runs for lien dates from January 1, 2027 through the end of 2031 and sunsets January 1, 2032.
As a Navy veteran and California real estate broker, I pay close attention when Sacramento changes how veterans stay in their homes. Today Governor Gavin Newsom signed a package of bipartisan veterans bills, including SB 296 by Senator Bob Archuleta (D-Pico Rivera), Chair of the Senate Committee on Military and Veterans Affairs. The bill's title says it plainly: Property taxation: exemption: disabled veteran homeowners.
This article is a plain-language overview for homeowners in Riverside, Orange, San Bernardino and Los Angeles counties. It is not tax, legal or assessor advice. County rules and forms still control. Confirm everything with your county assessor and a tax professional before you claim an exemption.
What exactly became law?
SB 296 replaces (for the years it covers) the prior disabled veterans' exemption under Revenue and Taxation Code Section 205.5 with a new program for eligible homeowners:
- Who: A veteran who is rated 100% disabled, the veteran's spouse, or both jointly — and, when conditions are met, an unmarried surviving spouse
- What property: The home that is owned by the claimant and is their principal place of residence (primary home)
- How much: 50% of that part of the full value that does not exceed $1,000,000 (adjusted as the statute provides) is exempt from taxation
- Low-income boost: If household income does not exceed the statutory low-income threshold for that assessment year, the exemption is 100% of that same first $1,000,000 of value
- Docs: You must provide the documentation the county assessor requires
- One exemption: If you take this SB 296 exemption, you generally cannot also stack another real property tax exemption on the same claim in the way the statute prohibits
In short: this is a property tax exemption on your primary home's assessed value, sized as either half or all of the first $1 million of full value, depending on disability status and income.
When does it start — and when does it sunset?
The exemptions apply to property tax lien dates on or after January 1, 2027, but before January 1, 2032. Practically that means:
- Starts: 2027 lien date
- Runs through: lien dates in 2027, 2028, 2029, 2030 and 2031
- Sunsets: January 1, 2032 (no SB 296 lien dates on or after that date under the enrolled bill)
So if you are planning a purchase, refinance or long-term stay as a disabled veteran homeowner, put 2027 on your calendar for the assessor claim — and know the program is temporary unless the Legislature extends it later.
Who may qualify?
Eligibility is statute-driven. In broad strokes you typically need:
- 100% disability status that meets the bill's definition (often tied to VA disability ratings and related criteria in the code)
- Ownership of the home as your principal residence (or joint ownership with a spouse as the bill allows)
- For surviving spouses: unmarried status and the other conditions the statute lists
- For the full (100%) exemption: household income at or below the low-income amount the state sets for that assessment year
Do not assume your current disabled-veteran exemption automatically rolls over. Ask your county assessor what claim form and attachments they will accept for the 2027 lien date.
What this is not
- Not a cash payment or grant from the state
- Not a change to your mortgage payment by itself (though lower property taxes can affect escrow)
- Not a sales-tax or transfer-tax exemption
- Not advice that every 100% disabled veteran will pay less than under the old exemption — some households should compare numbers with their assessor or tax advisor, because this program is in lieu of Section 205.5 for the years it covers
What Southern California veterans should do next
- Save a copy of the enrolled bill summary and the Governor's Sept. 28, 2026 signing announcement
- Call your county assessor (Riverside, Orange, San Bernardino or Los Angeles) and ask what claim form they will use for the SB 296 / disabled veteran homeowner exemption starting with the 2027 lien date
- Gather VA disability documentation, ownership proof and income records if you may seek the 100% low-income exemption
- If you are buying or selling a primary home as a disabled veteran, build the exemption timeline into your closing plan and escrow tax proration questions
If you are a veteran buying or selling in the Inland Empire or coastal SoCal, I can help on the real estate side and connect you with professionals who handle VA loans and tax questions regularly. Call or text 949-306-9260 or email ThankYou@AndresMorales.com. Hablo español.
Veteran buying or owning in SoCal?
I help military families with purchases, sales, REO and VA-related moves. Let's make sure the housing piece of your plan is solid while you work the tax exemption with your assessor.
Educational overview only. Not tax, legal, appraisal or assessor advice. Bill text and county procedures control. Sources: California enrolled SB 296 (2025–2026 session); Governor's Office announcement, Sept. 28, 2026. Andrés Morales is a licensed California real estate broker (DRE #01343492), Navy veteran and SDVOSB principal of Bonaventure Inc. Confirm current law and claim steps with your county assessor and a qualified tax advisor.