Updated January 2026
California Veteran Benefits 2026
California offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in CA for 2026.
California Highlights
- Property tax exemption for disabled veterans
- CalVet home loan program
- Free state park access for disabled veterans
- College fee waiver for dependents of disabled veterans
Income Tax Treatment
California has a state income tax.
Military Retirement Pay: For tax years 2025 through 2029, California lets retirees with federal AGI up to $125,000 (single) or $250,000 (joint) exclude up to $20,000 of military retired pay or SBP income; amounts above that are taxed normally.
Active Duty Pay: Active duty pay is fully taxable by California.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. California does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in California
Type: Assessed-value exclusion
California reduces the assessed value of a 100%-disabled (or paid-at-100% due to unemployability) veteran's principal residence by a basic exemption (~$175,298 for 2025 / $180,671 for 2026), or a larger low-income exemption (~$262,950 for 2025 / $271,009 for 2026) if household income is below the annual limit.
| VA disability rating / category | What you get |
|---|---|
| 100% service-connected disabled, OR compensated at the 100% rate due to individual unemployability (TDIU) | Basic exemption: reduces assessed value of the principal residence by $175,298 (2025 lien date) / $180,671 (2026 lien date). One-time filing.No income limit for the basic exemption. Must be the veteran's principal place of residence. |
| 100% service-connected (or paid-at-100% TDIU) AND low household income | Low-income exemption: reduces assessed value by $262,950 (2025) / $271,009 (2026).Household income must not exceed the annual limit ($78,718 for 2025 / $81,131 for 2026). Requires ANNUAL filing (claim form filed between January 1 and February 15). |
| Below 100% and not paid-at-100% | Not eligible for the Disabled Veterans' Exemption. (California's separate, much smaller $4,000 'Veterans' Exemption' exists for non-disabled veterans but is rarely usable and is not disability-rating based.) |
- Income limit: No income limit for the basic exemption. Low-income exemption requires household income at or below $78,718 (2025) / $81,131 (2026), adjusted annually by the California CPI.
- Age requirement: None.
- Surviving spouse: An unmarried surviving spouse may claim the exemption if the veteran qualified during their lifetime, would have qualified, or died from a service-connected injury/disease. Remarriage permanently terminates eligibility.
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: Cal. Revenue & Taxation Code Section 205.5 (implementing Cal. Const. art. XIII, sec. 4(a)) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the California Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in California
California has approximately 8 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.