Starting with the January 1, 2027 lien date, veterans rated 100% disabled can exempt 50% of the first $1 million of their home's assessed value, or 100% of the first $1 million if household income is at or below $83,474. It runs through the 2031 lien date.
It replaces the existing disabled veterans exemption rather than stacking on top of it. For most veterans in San Diego Country Estates it is a real increase, but at the 50% level it only beats the current exemption if your assessed value is above about $371,778.
As a Navy veteran and a broker here in Ramona, I get asked about veteran benefits more than almost anything else. SB 296, authored by Senator Bob Archuleta, is the biggest change to California's disabled veterans property tax exemption in years. It passed the Assembly 78 to 0 and was signed by Governor Newsom on September 28, 2026.
I have seen graphics on social media calling it a "100% exemption." That is true for some veterans and misleading for others. Here is the straight read.
What SB 296 actually does
California already has a disabled veterans exemption. For the 2027 lien date it exempts $185,889 of assessed value (the "basic" level) or $278,836 for lower-income households, according to the State Board of Equalization. Those amounts have not kept up with home values anywhere in San Diego County.
SB 296 creates a new, larger exemption for the 2027 through 2031 lien dates:
- Basic level: 50% of the portion of your home's value that does not exceed $1,000,000. The most it can exempt is $500,000.
- Low-income level: 100% of that same first $1,000,000, when household income is at or below $83,474, adjusted each year.
- Principal residence only. Rentals and second homes do not qualify.
- Unmarried surviving spouses of qualifying veterans can receive the same exemption under certain conditions.
To qualify, the veteran must have a service-connected disability and be rated 100% disabled (or paid at the 100% rate because of unemployability), be blind in both eyes, or have lost the use of two or more limbs. Those are the same standards as the current program.
The catch: it is one or the other
The bill says a veteran receiving the SB 296 exemption cannot receive any other real property tax exemption. You do not get the old exemption plus the new one. That matters because of how Prop 13 works.
Your exemption is applied to your assessed value, not what your home would sell for today. If you bought in San Diego Country Estates fifteen or twenty years ago, your assessed value may be a fraction of market value. Half of a low assessed value can be smaller than the flat $185,889 the current program gives you.
The break-even point at the basic level is roughly $371,778 of assessed value (twice the 2027 basic amount). Below that, the current exemption is bigger. Above it, SB 296 wins. At the low-income level, SB 296 is at least as good as the current program at any value up to $1 million.
What it could mean in dollars
Two hypothetical homeowners, both rated 100% disabled. One bought recently, one has owned for decades. Savings are estimated using California's 1% base property tax rate.
| Scenario | Current program (2027) | SB 296 |
|---|---|---|
| Assessed at $800,000, basic level | about $1,860/yr | about $4,000/yr |
| Assessed at $800,000, low-income level | about $2,790/yr | about $8,000/yr |
| Assessed at $300,000, basic level | about $1,860/yr | about $1,500/yr |
| Assessed at $300,000, low-income level | about $2,790/yr | about $3,000/yr |
Illustrations only, not a quote for any property. Your actual rate in Ramona is slightly above 1% because of voter-approved bonds, and fixed charges and special assessments on your bill are not reduced by any exemption.
Check this before you do anything
Pull your latest property tax bill and find the net assessed value, not the Zillow number. That one figure tells you whether SB 296 is a big raise, a small one, or worse than what you have now.
What it does not change
It does not touch your SDCEA dues, which run about $195 a month and are not a tax. It does not reduce the fixed charges and special assessments listed separately on your tax bill. It does not affect value above $1 million, though that rarely matters in SDCE. And it is temporary: unless the Legislature extends it, the new exemption ends after the January 1, 2031 lien date.
What it might mean for buyers
For a disabled veteran shopping for a home, SB 296 lowers the ongoing cost of owning in California for at least five tax years. On a newly purchased home, assessed value starts at the purchase price, so a buyer is usually well above the break-even point. That is worth factoring into a budget, but I would not stretch on price because of a benefit with a 2031 end date. Plan around the carrying cost you can afford if it is not renewed.
If you are shopping with a VA loan, the funding fee is already waived for veterans receiving compensation for a service-connected disability. SB 296 stacks a second benefit on top of that for those rated 100%. I walk through the full VA purchase math in Using a VA Loan to Buy a Home in Ramona CA.
How to claim it
Claims go through the San Diego County Assessor. The current program uses form BOE-261-G, and the low-income level must be refiled every year between January 1 and February 15 to get the full exemption. As of this writing, the Assessor had not published how SB 296 claims will be handled, and the bill requires documentation to be provided. If you already have the exemption, do not assume the upgrade is automatic. Call the Assessor and ask. The State Board of Equalization and your County Veterans Service Officer are also good resources.
I am a broker, not a tax advisor or attorney. This is general information to help you ask the right questions. If you want to talk through how it affects a home you own or are thinking about buying in San Diego Country Estates, I'll give you a straight read, including telling you if it doesn't help you.
Frequently asked questions
Who qualifies for the SB 296 exemption?
Veterans with a service-connected disability who are rated 100% disabled or paid at the 100% rate for unemployability, blind in both eyes, or have lost the use of two or more limbs, plus certain unmarried surviving spouses. The home must be your principal residence in California.
When does SB 296 start and end?
It applies to lien dates from January 1, 2027 through January 1, 2031. The January 1, 2027 lien date shows up on the 2027-28 property tax bill. It expires after that unless the Legislature extends it.
Can I combine it with the existing disabled veterans exemption?
No. A claimant receiving the SB 296 exemption cannot receive another real property tax exemption. It is one or the other, which is why your assessed value matters.
Does SB 296 eliminate my whole property tax bill?
No. It exempts value, which reduces the ad valorem portion of the bill. Fixed charges and special assessments are not reduced, and any value above $1 million is still taxed.
Is it automatic if I already have the disabled veterans exemption?
That was not clear as of September 29, 2026. The bill requires documentation to be provided to the county assessor. Contact the San Diego County Assessor to confirm what, if anything, you need to file.
Questions About Your Situation?
Whether you own in SDCE or are thinking about buying, I'm happy to walk through the numbers with you.