Owning a home in California can be expensive, but there are programs that can help lower your property taxes. Proposition 13, passed by voters, was created to keep property taxes affordable. It limits annual property taxes to about 1% of your home’s value plus voter-approved bonds and caps yearly increases at 2%.
In addition, California offers exemptions and transfer programs that can save homeowners hundreds or even thousands each year. Here are some of the most common:
Homeowner’s Exemption
When you claim your property as your primary residence, you could save $70 a year on your property tax bill. This exemption reduces the taxable value of your home by $7,000. The exemption is valid for as long as you occupy the property as your primary residence.
Senior and Disabled Property Tax Transfers
If you’re over the age of 55, disabled, or a victim of a natural disaster, you may be able to transfer your old property tax base to a new home. That means you can move without worrying about a large jump in taxes.
100% Disabled Veterans Exemption
Disabled U.S. military veterans can qualify for major tax savings. This exemption helps honor those who served by reducing one of the largest costs of homeownership. For 2025, the state of California offers a basic exemption of $175,298 from the taxable value of the property and a low-income exemption of $2,262,950. For the low-income exemption, annual household income for the prior year (2024) must be less than $78,178.
Parent-to-Child Transfers
When a parent passes their home to a child, certain California programs allow the property tax base to transfer along with it. This means the child keeps the parent’s lower tax rate, making it more affordable to hold onto the family home. The child must occupy the property as their primary residence, and the excluded amount from reassessment is the parent’s factored base year value plus $1 million. Any value over is added to the new assessed value.
Property taxes are often one of the biggest expenses for homeowners, but these programs make a difference. Whether you’re a first-time homeowner, a senior looking to downsize, or a veteran, it’s worth checking if you qualify. It is important to note that when purchasing a new home with a mortgage, underwriting will not factor in the exemption for qualifying, but that doesn’t mean the savings won’t be real.
To see what programs you qualify for, please give us a call at (760) 930-0569. Our Mortgage Loan Originators are here to walk you through pre-approval, answer your questions, and help you feel confident every step of the way.
