Do Veterans Pay Property Taxes in California?
As a veteran, you’ve done your part to serve our country, and now, you’re looking to reward yourself with a comfortable post-service life. One question that might be on your mind is whether you will be exempt from paying property taxes in California. As we dive into this query, we’ll explore whether veterans pay property taxes in California and what benefits may be available to them.
Direct Answer: Partial Exemption
In most cases, veterans do not pay property taxes in California if they are eligible for and apply for the Veterans’ Exemption from property taxes. This means that a portion of your property taxes will be cancelled or reduced, depending on the type of exemption granted. However, it is crucial to note that eligible veterans must apply for and obtain the exemption to fully take advantage of this tax break.
Eligibility Criteria
To determine your eligibility for the Veterans’ Exemption, you must meet all of the following conditions:
- Be honorably discharged from the Armed Forces of the United States, including the Army, Navy, Air Force, Marine Corps, Coast Guard, or the Reserves of these branches
- Own and occupy the real property as your primary place of residence
- NOT have been convicted of and be under sentence for murder or a felony
- Not have been convicted of a crime involving moral turpitude
Benefit Amount
The maximum annual benefit for the Veterans’ Exemption is as follows:
| Maximum Benefit Amount | Applies to Properties Owned as of |
|---|---|
| $2,435.00 | Before September 20, 2020 |
| $2,571.20 | On September 20, 2020, or later |
| $2,695.40 | If you are 10% or more disabled due to a service-connected disability |
How It Works
To apply for the Veterans’ Exemption, you’ll need to file an application with your County Assessor, either online or in-person. You’ll need to provide documentation, such as your DD Form 214 (Certificate of Release or Discharge from Active Duty), to verify your status. Once approved, you’ll receive a Statement of Benefits, which notifies your local government of your eligibility for the exemption. This exemption will then be reflected on your property tax bill.
Other Taxes to Consider
While a partial exemption from property taxes is a significant benefit for California veterans, it does not exempt you from all taxes. Specifically:
- Income tax: Veterans are still obligated to pay income tax, even with the exemption.
- Other local taxes: Other local taxes, like water and sewer fees or local assessments, may be applied in addition to the Veterans’ Exemption.
Additional Federal and State Benefits
Along with the Veterans’ Exemption, various other federal and state programs are available to support homeless or low-income veterans.
| Program | Description |
|---|---|
| VA Loan Guarantees | Low-rate home loans for eligible borrowers, with no down payment requirement |
| GI Bill Benefits | Post-secondary education and training funds, as well as Vocational Rehabilitation and Employment resources |
| California Aid | Various state-led programs, such as job training, housing assistance, and mental health services |
