California Homeowners’ Exemption Guide (2025)

If you own and live in your California home, you may qualify for the California Homeowners’ Exemption.

Although the tax savings are relatively modest, this is one of the easiest property tax benefits available to homeowners. Unfortunately, many new homeowners either forget to apply or aren’t aware the exemption exists.

This guide explains who qualifies, how much you can save, how to apply, and how the exemption works alongside Proposition 13.

What Is the California Homeowners’ Exemption?

The California Homeowners’ Exemption reduces the taxable assessed value of your primary residence by $7,000.

Rather than reducing your tax bill by $7,000, it reduces the amount of your home’s assessed value that is subject to property tax.

For most homeowners, that translates into an annual property tax savings of approximately $70 to $80 per year, depending on the local tax rate.

How the Exemption Works

Suppose your home’s assessed value is $500,000:

Your property taxes are calculated using the reduced taxable value rather than the full assessed value.

While the savings may seem small, there is no cost to apply, and once approved, the exemption generally remains in place as long as you continue to qualify.

Who Qualifies?

You generally qualify if:

• You own the property.
• The property is your principal residence.
• You occupied the home as your principal residence on January 1 (the lien date).
• You are not already claiming a Homeowners’ Exemption on another California property.

The exemption is intended only for owner-occupied primary residences.

What Is a Principal Residence?

Your principal residence is generally the home where you normally live most of the year.

County assessors may consider factors such as:

• Where you sleep most nights
• Where your driver’s license is registered
• Where you are registered to vote
• Where your mail is delivered
• Your primary mailing address

Vacation homes, rental properties, and second homes generally do not qualify.

How Do You Apply?

Most county assessors automatically mail a Homeowners’ Exemption claim form after a residential property purchase.

If you don’t receive one, you can request the form directly from your county assessor’s office.

Most counties use California Form BOE-266 (Claim for Homeowners’ Property Tax Exemption).

The completed form is filed with your county assessor – not with the IRS or California Franchise Tax Board.

When Is the Deadline?

To receive the full exemption for the current assessment year, claims are generally due by February 15.

If you file after February 15 but before December 10, you may still qualify for a partial exemption for that year.

If you purchase a home after January 1, special supplemental assessment rules may allow the exemption if you occupy the property within the required time period.

Do You Have to Reapply Every Year?

Usually not.

Once your exemption is approved, it generally remains in effect as long as:

• You continue to own the property.
• The property remains your primary residence.
• You do not claim another Homeowners’ Exemption elsewhere.

If you move or convert the property into a rental, you should notify your county assessor.

How the Homeowners’ Exemption Works with Proposition 13

The Homeowners’ Exemption and Proposition 13 are separate benefits.

Proposition 13 limits increases in assessed value. The Homeowners’ Exemption simply subtracts $7,000 from that assessed value before taxes are calculated.

Can You Claim More Than One Homeowners’ Exemption?

No.

California law generally allows only one Homeowners’ Exemption per homeowner at any given time.

If you own multiple homes, only your principal residence qualifies.

What Happens If You Move?

When you move:

• Your old home’s exemption should be removed.
• You should apply for the exemption on your new primary residence if eligible.

If you forget to update your exemption, your county assessor may eventually discover the change and remove the exemption.

Does Every County Use the Same Exemption?

Yes.

The Homeowners’ Exemption is established under California law and applies statewide.

Every county administers the program through its own assessor’s office, but the basic eligibility rules and $7,000 assessed value reduction are the same throughout California.