While prices for everything, from groceries to home insurance, continue to rise, you may find yourself looking for ways to save wherever possible. If you own your home, there could be a way for you to save on your property taxes. There are two available tax exemptions for homeowners in the state of California: the Homeowners’ Property Tax Exemption and the Disabled Veterans’ Property Tax Exemption.
Homeowners’ Property Tax Exemption – To qualify for this exemption, you must own your home, and it must be your principal place of residence. This will provide a $7,000 reduction in the taxable value of the home, amounting to a savings of $70 a year on your property taxes. To receive the full exemption, you must own your home by January 1 of the year and file for the exemption no later than February 15. Should you miss the February 15 deadline, you can still file for the exemption at a prorated amount for the first year. You will only need to file for this tax exemption once, and it will be applied indefinitely. Should you become ineligible, it is your responsibility to notify the assessor to avoid penalties. For more information and to obtain the Homeowners’ Property Tax Exemption form, please visit https://www.boe.ca.gov/proptaxes/homeowners_exemption.htm.
Disabled Veterans’ Property Tax Exemption – To qualify for this exemption, the home must be your principal place of residence and owned by the veteran, the veteran’s spouse, or the veteran and spouse jointly. Your character of discharge from military service must not be dishonorable. Additionally, to qualify for the exemption, you must fall under one of the following conditions: blind in both eyes, have lost the use of two or more limbs, or be totally disabled as a result of injury or disease sustained in military service. There are two possible exemptions available: Basic and Low-Income. While the Basic exemption is also referred to as the $100,000 exemption and the Low-Income exemption is also referred to as the $150,000 exemption, the total reduction in the taxable value of the home will differ depending on when you file, as the exemption amount is compounded annually by an inflation factor. To receive 100 percent of the exemption, you must file your initial claim within 90 days of the date of one of these qualifying events or by January 1 following the qualifying event. You may still apply after this time for a prorated exemption. The basic exemption only needs to be filed once; however, the low-income exemption would need to be filed annually. For more information, current exemption amounts, and to obtain the Disabled Veterans’ Property Tax Exemption form, please visit https://www.boe.ca.gov/proptaxes/dv_exemption.htm#Description.
If you are unsure whether you are already receiving one of these benefits, you can call your county assessor’s office, and they can quickly and easily check for you. With what seems like no end in sight to price increases, every little bit of savings can make a difference!
