Big News for Disabled California Veterans

California SB 296 Disabled Veterans Property Tax Exemption: What Veterans Need to Know for 2027

California SB 296 could provide significant property tax relief for qualifying 100% disabled Veterans beginning in 2027. For disabled Veterans who own homes in high-cost areas such as San Diego, Chula Vista, Oceanside, Riverside County and throughout California, this new law could substantially reduce the taxable value of their primary residence.

Governor Gavin Newsom signed California Senate Bill 296 (SB 296) on September 28, 2026. The legislation expands California’s Disabled Veterans’ Property Tax Exemption and is intended to help qualifying disabled Veterans remain in their homes by reducing their property tax burden. (Governor of California)

As a VA Loan Expert in San Diego, I believe this is an important change for California Veterans to understand, not only current homeowners, but also 100% disabled Veterans who are considering using their VA home loan benefit to purchase a home in California.

What Is California SB 296?

SB 296 is a California law expanding the property tax exemption available to qualifying disabled Veteran homeowners and certain qualifying surviving spouses.

The biggest change is the amount of a home’s value that may potentially be exempt from property taxation.

Beginning with qualifying property tax lien dates on or after January 1, 2027, SB 296 creates significantly larger exemptions than California’s previous Disabled Veterans’ Exemption.

For some qualifying Veterans, the exemption can equal 50% of the portion of a home’s full value up to $1 million.

For qualifying lower-income Veterans, the benefit can be even greater: 100% of the portion of the home’s full value up to $1 million.

This could make SB 296 especially valuable to disabled Veterans who own homes in higher-cost California real estate markets.

How Does the SB 296 50% Property Tax Exemption Work?

For qualifying disabled Veterans who do not fall within the lower-income category, SB 296 generally provides an exemption equal to:

50% of the portion of the property’s full value up to $1 million.

Here are simplified examples:

$600,000 home value:
Potential exemption = $300,000

$800,000 home value:
Potential exemption = $400,000

$1,000,000 home value:
Potential exemption = $500,000

$1,200,000 home value:
The 50% calculation is generally limited to the first $1 million, meaning the exemption could be up to $500,000 before considering future inflation adjustments and individual eligibility.

Does SB 296 Mean 50% Off Your Property Tax Bill?

Not necessarily.

This is an important distinction for California Veterans.

SB 296 should not simply be described as giving every qualifying Veteran “50% off their property taxes.”

The exemption reduces the amount of the property’s value that is subject to property taxation. The resulting dollar savings depend on the property’s taxable assessed value, applicable tax rate, ownership and other factors.

SB 296 Low-Income Disabled Veteran Exemption

One of the most significant provisions of SB 296 involves lower-income disabled Veterans.

The legislation establishes an income threshold of $83,474, with the threshold subject to adjustment for future assessment years.

For a qualifying Veteran whose household income does not exceed the applicable income limit, the exemption can equal:

100% of the portion of the property’s full value up to $1 million.

That is substantially different from the standard 50% calculation.

SB 296 Income Differences Explained

For qualifying Veterans, the basic distinction can be understood this way:

Household income of $83,474 or less:
Potential exemption of 100% of the portion of the home’s full value up to $1 million, subject to eligibility requirements and future adjustments to the income and value thresholds.

Household income above $83,474:
Generally, a potential exemption of 50% of the portion of the home’s full value up to $1 million, subject to the law’s requirements and certain provisions involving lower-valued properties.

Because these thresholds can be adjusted, Veterans should verify the applicable income limit for the tax year in which they apply.

Example: $800,000 California Home

Let’s look at a simplified example of why the income difference can matter.

Assume a qualifying disabled Veteran has a principal residence with a full value of $800,000.

Veteran Above the Low-Income Threshold

50% × $800,000 = $400,000 potential exemption

Instead of the entire $800,000 being considered under the example, $400,000 could potentially be exempt.

Veteran Meeting the Low-Income Requirement

100% × $800,000 = $800,000 potential exemption

The qualifying Veteran could potentially have the entire $800,000 value exempt under the new SB 296 framework.

The actual property tax savings will depend upon the Veteran’s eligibility, property assessment, ownership and local tax circumstances.

What Happens With a Home Worth More Than $1 Million?

This is particularly relevant in San Diego County, where many homes are valued above $1 million.

SB 296 does not mean that a $1.5 million home receives a $750,000 exemption under the standard 50% provision.

The calculation generally applies to the portion of the property’s full value up to $1 million.

For example, under the 50% provision:

$1,000,000 × 50% = $500,000 potential exemption.

The $1 million value threshold is subject to future adjustments as provided under the law.

For qualifying lower-income Veterans, the potential exemption can reach 100% of the first $1 million of full value.

Who Qualifies for SB 296 in California?

SB 296 does not provide this expanded exemption to every California Veteran.

The law concerns qualifying disabled Veteran homeowners and certain qualifying surviving spouses.

Among other requirements, the home generally must be the Veteran’s principal place of residence, and the Veteran must satisfy the applicable disability requirements.

Do You Have to Be 100% Disabled to Qualify for SB 296?

Veterans should pay particular attention to this requirement.

Having a VA service-connected disability rating does not automatically mean a Veteran qualifies for California’s Disabled Veterans’ Property Tax Exemption.

The exemption generally applies to Veterans meeting California’s statutory disability requirements, including qualifying Veterans rated 100% disabled or compensated at the 100% rate because of individual unemployability, subject to the state’s specific eligibility rules.

Veterans with disability ratings below the qualifying level should not assume that SB 296 applies simply because they receive VA disability compensation.

Your local California county assessor can determine eligibility for the property tax exemption.

When Does California SB 296 Take Effect?

Governor Gavin Newsom signed SB 296 on September 28, 2026 as part of legislation supporting California Veterans and servicemembers. (Governor of California)

The expanded property tax provisions are scheduled to apply beginning with qualifying lien dates on or after:

January 1, 2027

The expanded provisions are currently structured to operate through lien dates before January 1, 2032, unless subsequently changed by California law.

That makes 2027 an important year for disabled Veteran homeowners to understand the new exemption and determine whether they qualify.

Why SB 296 Is Especially Important for San Diego Veterans

The potential benefit of SB 296 can be particularly meaningful in San Diego County, where housing costs and property values can be substantial.

Veterans purchasing homes in areas such as:

San Diego

Chula Vista

La Mesa

El Cajon

Santee

Oceanside

Escondido

Imperial Beach

National City

Jamul

Riverside County

Imperial Valley

may want to understand the property tax benefits available to disabled Veterans before determining their homebuying budget.

A qualifying property tax exemption can potentially lower the ongoing cost of homeownership.

Can SB 296 Help a Disabled Veteran Buy a Home?

SB 296 is a property tax law rather than a mortgage program, but understanding potential property tax obligations is an important part of determining the overall cost of owning a home.

When purchasing with a VA home loan in San Diego or elsewhere in California, your mortgage payment is only one component of the total monthly housing expense.

Property taxes and homeowners insurance can also represent significant monthly expenses.

A qualifying disabled Veteran should therefore investigate available property tax exemptions when planning a home purchase.

Combining California Veteran Benefits With a VA Home Loan

For an eligible Veteran, the VA home loan program can already provide powerful homeownership benefits.

Depending on eligibility and the transaction, VA financing can offer benefits such as:

No down payment required

No monthly private mortgage insurance (PMI)

Competitive financing options

Flexible qualifying guidelines

The ability to use the VA home loan benefit more than once

Potential exemption from the VA funding fee for qualifying disabled Veterans

When a qualifying disabled Veteran also receives a California property tax exemption, the combination can make a meaningful difference in the overall cost of homeownership.

Frequently Asked Questions About California SB 296

What is SB 296 in California?

SB 296 is legislation signed in 2026 that expands California’s 100% Disabled Veterans’ Property Tax Exemption for disabled Veteran homeowners and certain surviving spouses.

When does SB 296 take effect?

The expanded exemption is scheduled to apply beginning with qualifying property tax lien dates on or after January 1, 2027.

How much is the SB 296 property tax exemption?

For qualifying Veterans, the exemption can generally equal 50% of the portion of a property’s full value up to $1 million.

Qualifying Veterans meeting the applicable lower-income requirement can potentially receive an exemption equal to 100% of the portion of the property’s full value up to $1 million.

What is the SB 296 low-income limit?

The legislation specifies a household income figure of $83,474, subject to adjustment for subsequent assessment years.

Does SB 296 eliminate property taxes for disabled Veterans?

For some qualifying lower-income disabled Veterans with homes valued within the applicable limit, the exemption could potentially cover 100% of the qualifying property value.

That does not mean every tax, assessment or charge associated with the property necessarily disappears.

Does a 70%, 80% or 90% disabled Veteran qualify for SB 296?

A VA disability rating by itself does not automatically establish eligibility. California has specific statutory disability requirements for the Disabled Veterans’ Exemption. Veterans should verify eligibility directly with their county assessor.

Does SB 296 apply to a second home or investment property?

The Disabled Veterans’ Exemption generally applies to the qualifying Veteran’s principal place of residence, rather than an ordinary second home or investment property.

Can a surviving spouse qualify?

Certain qualifying surviving spouses may be eligible under California’s Disabled Veterans’ Exemption rules, provided the applicable statutory requirements are satisfied.

San Diego VA Loan Expert — Andre Enriques

If you’re a Veteran thinking about buying a home in San Diego, Chula Vista or anywhere in California, understanding all of the benefits available to you can be just as important as finding the right mortgage.

I’m Andre Enriques Mortgage Banker – VA Loan Expert, and I’ve spent more than 25 years in the mortgage industry helping Veterans and military families navigate the homebuying and VA loan process.

My goal is to help Veterans understand how to use the VA home loan benefit they’ve earned while looking at the entire cost of homeownership including financing, down payment, property taxes and available Veteran benefits.

If you’re considering purchasing a home with a VA loan in San Diego, Chula Vista, Riverside County or anywhere in California, contact me to discuss your VA financing options and get started with a VA loan pre-approval.

For questions specifically concerning SB 296 property tax eligibility or the amount of an exemption, Veterans should contact their local county assessor.

Andre Enriques
Mortgage Banker – VA Loan Expert
Serving San Diego, Chula Vista and Veterans throughout California

619-208-6499

This article is provided for educational and informational purposes only and does not constitute tax or legal advice. Property tax exemption eligibility and calculations are determined by the appropriate California county assessor. Program requirements, income thresholds and exemption amounts may change.

The post Big News for Disabled California Veterans appeared first on Andre Enriques Mortgage Banker - VA Loan Expert.

La Mesa VA Loans

If you’re a Veteran, active-duty service member, or eligible surviving spouse considering buying a home in La Mesa, California, your VA home loan benefit may be one of the most valuable financial tools available to you.

As a VA Loan Expert serving La Mesa and San Diego County, I’ve spent more than 25 years in the mortgage industry helping Veterans understand their VA benefits and find a path toward homeownership.

One thing I’ve learned over the years is that many Veterans don’t realize just how powerful their VA home loan benefit can be.

Whether you’re purchasing your first home, moving to La Mesa, or already used a VA loan in the past, it’s worth understanding your options before deciding how to finance your next home.

Why Consider a VA Loan When Buying a Home in La Mesa?

VA loans were created to help eligible Veterans and service members achieve homeownership with favorable financing terms.

According to the U.S. Department of Veterans Affairs, a VA-backed purchase loan can offer qualified borrowers’ benefits including no down payment, no private mortgage insurance (PMI), competitive interest rates, limited closing costs, and no prepayment penalty.

Those advantages can be especially valuable for Veterans purchasing a home in La Mesa and the greater San Diego area, where preserving cash can be important.

You May Be Able to Buy With Zero Down

One of the biggest advantages of VA financing is the ability for qualified borrowers to purchase a home without making a down payment, provided the property’s sales price doesn’t exceed its appraised value and other VA and lender requirements are met.

Think about what that means.

With many traditional mortgage programs, a buyer may need to save thousands—or tens of thousands—of dollars before purchasing a home.

A qualified Veteran using VA financing may be able to keep more of that money available for savings, moving expenses, furnishings, emergencies, or other financial goals.

You earned this benefit through your service. Understanding how to maximize it matters.

No Monthly Private Mortgage Insurance

This is another major VA loan advantage that sometimes gets overlooked.

Many conventional borrowers putting less than 20% down may be required to pay private mortgage insurance. FHA financing also generally includes mortgage insurance.

A VA-backed purchase loan does not require monthly PMI or MIP.

That can make a meaningful difference when comparing the total monthly cost of different financing options.

When I work with a Veteran buying a home in La Mesa, I don’t simply look at the interest rate. I look at the entire financing structure to determine which option makes the most sense for that Veteran’s situation.

VA Loans May Offer Competitive Interest Rates

VA-backed mortgages often offer competitive interest rates because the Department of Veterans Affairs guarantees a portion of the loan. The VA specifically lists competitive rates and potentially better terms among the benefits of its home loan program.

Your actual rate will depend on the lender, market conditions, credit profile, loan structure and other factors.

That’s why Veterans should compare the entire loan—not simply an advertised interest rate.

Sellers Can Help With Certain Costs

Another potentially valuable VA benefit is the ability to structure seller-paid costs.

The VA allows sellers or builders to provide credits toward certain buyer closing costs. VA rules also permit seller concessions within specified limits.

Depending on the transaction and negotiations, this can potentially reduce the amount of money a Veteran needs to bring to closing.

This is one reason having both an experienced VA lender and VA-knowledgeable real estate agent can be so important.

The financing and purchase contract should work together.

Your VA Loan Benefit Isn’t Necessarily a One-Time Benefit

One of the biggest VA loan myths I hear is:

“Andre, I already used my VA loan. Can I use it again?”

Potentially, yes.

The VA confirms that eligible borrowers may be able to use their VA home loan benefit again after selling or refinancing a property purchased with a VA-backed loan.

There can also be situations involving remaining or restored entitlement that deserve a closer look.

So don’t assume you’re no longer eligible simply because you’ve used a VA loan before.

Let an experienced VA lender review your Certificate of Eligibility and entitlement first.

VA Loans Aren’t Only for First-Time Homebuyers

You don’t have to be a first-time buyer to use a VA loan.

VA financing can be an excellent option for both first-time and repeat homebuyers.

In fact, Veterans may be able to use VA financing for several eligible property types, including a single-family residence, a condominium in a VA-approved project, and properties containing up to four units when VA occupancy and other requirements are satisfied.

That creates opportunities beyond simply purchasing a traditional single-family home.

What About the VA Funding Fee?

Many VA loans include a one-time VA funding fee.

The amount can vary based on factors such as the type of loan, whether you’ve previously used your VA benefit and the amount of your down payment.

However, some Veterans and other eligible borrowers are exempt from paying the VA funding fee, including certain Veterans receiving VA compensation for service-connected disabilities and certain eligible surviving spouses.

The funding fee can generally be financed into the VA loan rather than paid entirely out of pocket at closing.

This is another area where I carefully review a Veteran’s eligibility before structuring the loan.

Buying a Home in La Mesa With a VA Loan

La Mesa gives homebuyers access to the broader San Diego region while offering its own established neighborhoods and housing options.

But buying a home isn’t just about finding the right property.

The financing matters just as much.

Before you start touring homes, I recommend getting fully pre-approved and understanding:

• Your VA loan eligibility
• Your Certificate of Eligibility (COE)
• How much home you can comfortably afford
• Estimated monthly payment
• Current VA loan options
• Your available VA entitlement
• Estimated cash needed to close
• Potential seller credits or concessions
• Whether a temporary buydown or other strategy makes sense
• How your VA offer can be structured competitively

The VA requires eligible borrowers to obtain a Certificate of Eligibility, meet applicable VA and lender credit and income requirements, and intend to occupy the property as their home.

Don’t Assume You Won’t Qualify

I’ve worked with many Veterans over the years who initially believed they couldn’t purchase a home.

Sometimes they were worried about their credit.

Sometimes they didn’t think they made enough money.

Others had previously been told they couldn’t qualify.

And some simply didn’t understand their VA entitlement.

Don’t disqualify yourself before having an experienced VA loan professional review your situation.

VA underwriting is different from conventional financing, and understanding concepts such as residual income, entitlement and VA-specific guidelines can make a significant difference.

Why Working With a VA Loan Expert Matters

Not every mortgage professional works with VA loans every day.

VA loans have unique guidelines involving entitlement, Certificates of Eligibility, residual income, allowable fees, property requirements, funding-fee exemptions and other considerations.

Experience matters.

I’ve spent more than 25 years in the mortgage industry and have made helping our military Veterans one of the primary focuses of my business.

My goal isn’t simply to get a Veteran pre-approved.

It’s to help you understand your benefit, structure your financing properly and make the homebuying process as straightforward as possible.

Who you work with matters—especially with a VA loan.

Looking for a VA Loan in La Mesa, California?

If you’re a Veteran, active-duty service member or eligible surviving spouse considering buying a home in La Mesa or anywhere in San Diego County, I’d be honored to help you explore your VA home loan options.

Whether you’re:

Buying your first home • Using VA financing again • Moving within San Diego County • Trying to determine your remaining entitlement • Previously denied for a mortgage • Or simply wondering how much home you may qualify for

Let’s start with a conversation.

There’s no reason to guess about your eligibility or buying power when we can review the numbers and create a plan.

Andre Enriques
VA Loan Expert | Mortgage Banker
619-208-6499

Serving Veterans and homebuyers throughout La Mesa, San Diego, Chula Vista, El Cajon, Santee, Spring Valley and communities throughout California.

Ready to explore buying a home in La Mesa with your VA benefit? Contact me today to get started with your VA loan pre-approval.

Loan approval is subject to borrower qualification, VA eligibility, property eligibility, underwriting requirements and applicable loan program guidelines. Loan terms, rates and costs vary.

The post La Mesa VA Loans appeared first on Andre Enriques Mortgage Banker - VA Loan Expert.