Peninsula Real Estate Guide
California’s Homeowners’ Exemption and Disabled Veterans’ Exemption: Property Tax Savings Many San Mateo County Owners Miss
A simple, one-time filing that reduces your bill every single year you own the home
|
$7,000 Homeowners’ Exemption Amount |
Feb. 15 Deadline for the Full Amount |
$180,671 Basic Disabled Veterans’ Exemption, 2026 |
One-Time Filing, No Annual Refiling |
Two genuinely simple filings can reduce a San Mateo County property tax bill every year a home is owned and occupied, and both are surprisingly often overlooked, especially by first-time buyers who never learn these exist.
The Homeowners’ Exemption: A Small but Permanent Reduction
Any owner who occupies a home as their principal residence as of January 1 can apply for a $7,000 reduction to the home’s assessed value, lowering the annual property tax bill by roughly $70 to $80 a year at typical California tax rates. It’s a modest number, but it’s genuinely permanent once filed correctly, and it costs nothing to claim.
File Once, Not Every Year
Unlike many tax filings, the Homeowners’ Exemption doesn’t need to be renewed annually once granted. It stays in effect indefinitely until the property changes ownership or you stop using it as your principal residence, at which point you’re legally required to notify the County Assessor’s office in writing. Filing the full exemption requires meeting the February 15 deadline; filing late, by December 10, still secures 80% of the exemption, or $5,600, for that tax year.
The Disabled Veterans’ Exemption: A Genuinely Substantial Reduction
For veterans rated 100% disabled due to a service-connected injury, or compensated at the 100% rate due to unemployability, California offers a far larger exemption than the standard homeowners’ benefit. For the 2026 lien date, the basic exemption removes $180,671 from assessed value with no income limit, while a low-income tier removes $271,009 for households with total income under $81,131 a year. An unmarried surviving spouse of a qualifying veteran may also claim this exemption.
| Tier | 2026 Exemption Amount | Income Limit |
| Basic | $180,671 | None |
| Low-income | $271,009 | $81,131 household income |
You Cannot Claim Both on the Same Property
According to both the California State Board of Equalization and San Mateo County, a property owner cannot receive the Homeowners’ Exemption and the Disabled Veterans’ Exemption on the same property at the same time. Since the Disabled Veterans’ Exemption is dramatically larger, qualifying veterans should claim it instead of the standard homeowners’ benefit, not in addition to it.
How to Actually File
| File the Homeowners’ Exemption directly with the San Mateo County Assessor-County Clerk-Recorder’s office, typically included in your closing paperwork but worth confirming was actually submitted |
| File the Disabled Veterans’ Exemption using Form BOE-261-G with the County Assessor |
| The low-income Disabled Veterans’ Exemption tier requires annual income recertification, typically by February 15 each year |
| Notify the Assessor in writing if you sell, move, or otherwise stop qualifying for either exemption |
Why New Buyers Specifically Miss This
Given how much attention closing paperwork demands, the Homeowners’ Exemption form is easy to overlook among dozens of other documents. It’s worth specifically confirming with your title company or the County Assessor’s office that it was actually filed on your behalf, rather than assuming it happened automatically.
Key Takeaway
The Homeowners’ Exemption is a small, permanent, one-time filing every owner-occupant should confirm was submitted. Qualifying disabled veterans have access to a dramatically larger exemption instead, not in addition, and should file it directly with the County Assessor.
Frequently Asked Questions
Do I need to refile the Homeowners’ Exemption every year?
No, it remains in effect until you sell, move, or otherwise become ineligible, at which point you must notify the Assessor.
Can I claim both the Homeowners’ and Disabled Veterans’ Exemption?
No, only one is allowed per property; qualifying veterans should claim the larger Disabled Veterans’ Exemption instead.
What happens if I miss the February 15 deadline?
A late filing by December 10 still secures 80% of the Homeowners’ Exemption for that tax year.
Does the low-income Disabled Veterans’ Exemption tier require annual paperwork?
Yes, annual income recertification is required to maintain that higher exemption tier.
| Related Reading | |
| San Carlos Property Tax Rates: A Buyer’s Guide | See how these exemptions fit into your overall tax bill. |
| Property Taxes Compared: South San Francisco vs. Belmont vs. San Carlos | Compare base rates across the three cities before layering on exemptions. |
| Prop 19 and Inheriting Property on the Peninsula | Another property tax consideration worth understanding together. |
| The San Carlos Home Buying Process, Step by Step | See where this filing fits into your closing paperwork. |
Not Sure If Your Homeowners’ Exemption Was Filed?
I can help you confirm your status with the County Assessor and point you to the right forms.
Let’s Talk About Your Property
Holly Noto | Coldwell Banker Realty | DRE#01244498, DRE#01908304
580 El Camino Real, San Carlos, CA 94070
650.544.6185 | [email protected]
Exemption amounts reflect San Mateo County Assessor-County Clerk-Recorder and California State Board of Equalization data for the 2026 lien date and are subject to annual adjustment. This content is not tax advice; confirm current figures and eligibility directly with the County Assessor.
