California Disabled Veteran Benefits

Estimate your property-tax savings →  ·  How to file the exemption, step by step →

Military-Friendliness Index

▰▰▰▱ Strong   See every state · How this is scored

If you are a disabled veteran living in California, or thinking about moving here, this page puts every state-level benefit tied to your VA (U.S. Department of Veterans Affairs) disability rating in one place: the property tax exemption, state income tax breaks, vehicle plates and toll perks, parks and hunting/fishing, education for you and your family, state veterans homes, hiring preference, and more. Every dollar figure, deadline, and form name below comes from an official California source, and I link that source so you can check it yourself. Where the state's own pages leave a number unsettled, I tell you to confirm it rather than guess.

Plain-language promise: I keep the how-to steps here so you can act. The only thing I route out is filing or increasing a VA claim, because that is free claims work best handled by an accredited Veterans Service Officer (VSO) or your County Veterans Service Office (CVSO), never a paid company.

New for 2025 — California finally exempts some military retirement pay. For decades California was one of the last states to tax military retirement pay in full. Starting with the 2025 tax year and running through 2029, California now lets qualified taxpayers exclude up to $20,000 of federal uniformed-services retirement pay, or Survivor Benefit Plan (SBP) annuity payments, from state taxable income — but only if federal adjusted gross income (AGI) is $125,000 or less (single) or $250,000 or less (married/joint or surviving spouse). Note plainly what this is and is not: it is a capped, income-limited, temporary exclusion, not a full exemption, and it does not touch your VA disability compensation (that was already tax-free). A bill, SB 1407, is moving through the Legislature to raise this further — as currently amended it would keep the 2025 cap unchanged at $20,000 and raise it to $40,000 for 2026 through 2036, add annual inflation adjustments to the same AGI limits starting in 2027, and push the sunset out to 2037. As of this writing it has passed the full Senate (39–0) and cleared Assembly Revenue & Taxation and Military & Veterans Affairs, and remained under submission at its Assembly Appropriations suspense-file hearing on August 13, 2026 (a further hearing is expected, likely in the last week of August) — still not law — do not count on a bigger exclusion, let alone a full exemption, until the state actually enacts one.

Sources Franchise Tax Board · SB 1407 bill text

Property tax exemption

What it is: California's Disabled Veterans' Exemption reduces the assessed value of your principal residence before your county calculates property tax. Read this carefully, because it is the single most misunderstood California benefit: it is not a 100% "your-taxes-are-zero" exemption like some states offer. It is a fixed dollar reduction of assessed value. On a modestly valued home the reduction can wipe out most or all of the bill; on an expensive home it only knocks the fixed amount off the top. You apply through your county assessor (not the state).

Two tiers (this is where the dollar amount is decided):

• Basic exemption — no income limit. Reduces assessed value by roughly $180,671 for the 2026 lien year (it was about $175,298 for 2025). The amount is bumped up each year for inflation, so confirm the current-year figure before you rely on it — with your county assessor or the state's annual letter to assessors. Once granted, the basic exemption has no annual re-filing requirement.
• Low-income exemption — household income limit. A larger reduction of roughly $271,009 for 2026, available if annual household income is under roughly $81,131 (2026). Confirm both current-year figures with your assessor. Re-file this tier each year by February 15 for the full amount; a late filing still gets 90% of the exemption through December 10, and 85% after that.

Every way to qualify (the disability routes), spelled out: you qualify if the injury or disease was incurred in service and the VA (or your military branch) certifies that you meet any one of these:

• Rated 100% service-connected disabled by the VA; or
• Compensated at the 100% rate because of Individual Unemployability (IU/TDIU) — that is, rated below 100% on the schedule but paid as if 100% because service-connected conditions prevent you from working; or
• Blind in both eyes; or
• Lost the use of two or more limbs; or
• Totally disabled as a result of injury or disease incurred in military service.

Note the practical point the law keys on: unlike some benefits, this exemption's top door is "100% or paid at the 100% rate," so a combined rating of, say, 90% does not qualify unless you are paid at the 100% rate through IU. There is no partial disabled-veterans property-tax tier for lower ratings.

Other conditions:

• Character of service must be under "other than dishonorable" conditions.
• The home must be your principal place of residence. There is an exception if you are confined to a hospital or care facility and the home is not rented out.
• Surviving spouse: an unmarried surviving spouse may claim the exemption if the veteran qualified (or would have qualified) during their lifetime, or if the veteran died from a service-connected injury or disease. Remarriage ends eligibility.

1. Find your county assessor's office (search "[your county] CA assessor disabled veterans exemption"). They administer this, not the state.
2. Get Form BOE-261-G, Claim for Disabled Veterans' Property Tax Exemption — BOE-261-G (PDF). Your county may host its own copy; the content is the same statewide.
3. Decide which tier fits: basic (no income test, file once) or low-income (larger reduction, income under roughly $81,131, re-file each year by February 15 for the full amount; late filings still get 90% through December 10, 85% after).
4. Attach proof of your VA disability (usually your VA rating/award letter showing 100% or the 100% IU rate) and proof your discharge was other than dishonorable (your DD Form 214 or a VA letter).
5. File with the assessor. If your rating or eligibility later changes, report it on Form BOE-261-GNT, Change of Eligibility Report (PDF).
6. Confirm it posted by checking your next tax bill for the exemption line, or call the assessor a few weeks after filing.

Sources State Board of Equalization · CalVet · the annual assessor letter (PDF)

State income tax

What it is: California does not tax your VA disability compensation, and starting in 2025 it exempts a limited slice of military retirement pay.

• VA disability compensation is federally tax-free, and California follows that — it is never reported as taxable income on your federal or California return. This is a federal rule that flows through to your state return.
• Military retirement pay and SBP: California generally taxes military retirement pay, but for tax years 2025 through 2029 you may exclude up to $20,000 of federal uniformed-services retirement pay or SBP annuity payments, if your federal AGI is $125,000 or less (single) or $250,000 or less (joint/surviving spouse). You claim it on Schedule CA (540), not on your federal return.
• No broader California income-tax exemption specific to service-connected disabled veterans (beyond the items above) was found in official sources. Re-check the current-year FTB forms and instructions each filing season in case new legislation is enacted.

1. Confirm your VA disability compensation never appears as income on your California return (it should not be on your federal return either, and California starts from your federal figures).
2. If you receive military retirement pay or SBP and your AGI is within the limits, take the up to $20,000 exclusion on the current year's Schedule CA (540) — check that year's instructions for the exact line, since layouts change.
3. If a prior return wrongly taxed your VA compensation, fix it with a preparer familiar with military filings or by contacting the FTB — this is a filing mechanic, not claims work.

Sources Franchise Tax Board · IRS Armed Forces' Tax Guide

Vehicles, plates & tolls

What it is: the California Department of Motor Vehicles (DMV) issues Disabled Veteran (DV) license plates that waive registration and license fees on one vehicle, unlock accessible parking, and can qualify you for free or discounted tolls with several toll agencies.

• DV license plates — who qualifies: a veteran with a permanent, service-connected disability who meets one of the following: (i) a disability rated 100% by the VA for a condition that substantially affects mobility; or (ii) unable to move without an assistive device; or (iii) has lost the use of one or more limbs; or (iv) is permanently blind under California law. The DV plate criteria turn on these specific medical/mobility conditions certified on the form, so read them against your own situation.
• Fee waiver: qualified DV plate holders are exempt from all registration and license fees (except duplicate/replacement fees) on one vehicle — a passenger vehicle, motorcycle, or commercial vehicle under 8,000 lbs. unladen weight not used for hire — owned by the veteran and displaying DV plates.
• Application: file Form REG 256V, Certification for Disabled Veterans License Plates — Form REG 256V (PDF) — with the medical certification signed by a licensed physician (or optometrist, physician assistant, nurse practitioner, chiropractor, certified nurse midwife) — or by a County Veterans Service Officer, CalVet, or VA representative.
• Parking: DV plates let you park in wheelchair-symbol spaces, at blue and green curbs, and free at metered spaces statewide.
• Tolls: rules vary by toll operator and are changing, so confirm with the specific agency. Vehicles with DV plates and an active FasTrak account may cross many Bay Area toll bridges free; San Diego's SANDAG runs a Veterans Toll Exemption Program; and, as of October 1, 2025, The Toll Roads (State Routes 73/133/241/261 in Orange County) extended a toll waiver to accountholders who qualify for the DV registration-fee exemption even without DV plates. These generally do not cover express/HOT lanes unless a separate program applies. Confirm current terms with your operator.

1. Complete Form REG 256V, including the medical certification (a CVSO, CalVet, or VA rep can sign it).
2. Submit it to the DMV with your current registration/plate info and proof of your full legal name and date of birth; ask that the registration and plate fees be waived on your one qualifying vehicle before you pay.
3. If tolls matter to you, open a FasTrak account with the relevant agency and apply their veteran/DV toll program — verify free vs. discounted travel with that specific operator, since programs differ across the Bay Area, San Diego (SANDAG), and Orange County (The Toll Roads).

Sources California DMV · Bay Area FasTrak · SANDAG · The Toll Roads

Recreation: parks, hunting & fishing

What it is: a free lifetime state-parks pass for qualifying disabled veterans, and deeply reduced-fee hunting and fishing licenses through the California Department of Fish and Wildlife (CDFW).

• Distinguished Veteran Pass (California State Parks): a free pass covering free vehicle day-use, family camping, and boat-use fees at over 100 State Parks-operated units. To qualify you must be an honorably discharged California-resident veteran who meets one of: (i) an overall/combined service-connected disability rating of 50% or greater tied to service during one of the listed qualifying periods (for example Dec 7, 1941–Dec 31, 1946; Jun 27, 1950–Jan 31, 1955; Nov 1, 1955–May 7, 1975; May 15, 1975–present; Jan 1, 1981–present); or (ii) a former prisoner of war (POW); or (iii) a Medal of Honor recipient. The pass is valid for five years before renewal.
• Reduced-fee hunting & fishing licenses (CDFW): honorably discharged veterans with a service-connected disability rating of 50% or greater qualify for a Disabled Veteran hunting license at roughly $9.79 and a reduced-fee Disabled Veteran sport fishing license at roughly $10.54 (2026 fees; confirm the current-year fee schedule), after prequalifying with CDFW using a VA disability letter. Separately, CDFW offers no-fee disability permits and entitlements (for example the Mobility Impaired Disabled Persons Motor Vehicle Hunting License, the Visually Disabled Muzzleloader Scope Permit, and the Disabled Archer Permit) available to qualifying disabled persons generally, not limited to veterans.

1. For the Distinguished Veteran Pass, confirm you meet a qualifying route (50%+ rating from a listed period, former POW, or Medal of Honor) and apply online, by mail, or in person through the State Parks application page.
2. For a reduced-fee license, get your VA letter showing a 50% or higher service-connected rating and prequalify with CDFW (online account, mail, or secure upload) before buying.
3. Verify the exact current-year license fee on the CDFW page, since fees change annually.

Sources California State Parks · the pass application · Department of Fish and Wildlife

Education for you & your family

What it is: the CalVet College Fee Waiver waives system-wide tuition and fees for the dependents (children and spouses) of a service-connected disabled veteran at any California Community College, California State University (CSU), or University of California (UC) campus. It does not pay for the veteran's own tuition, and it does not cover books, parking, or room and board.

The four Plans (every route to qualify):

• Plan A: the spouse, registered domestic partner, unmarried child, or unmarried surviving spouse of a veteran who is totally (100%) service-connected disabled — or who died of service-connected causes — where the veteran served during a period of war or was awarded a Campaign or Expeditionary Medal. No income limit. A child must be under 27 (up to 30 if the child is also a veteran); no age limit for spouses/partners. A dependent cannot use this while receiving VA Chapter 35 benefits.
• Plan B: the child (children only, no age limit) of a veteran with any service-connected disability rating (wartime service not required). Subject to an income test — the child's income must not exceed the state's annual limit (confirm the current figure; the 2026–2027 limit is about $22,941).
• Plan C: any dependent or unmarried surviving spouse of a California National Guard member killed, permanently disabled, or who died of a disability resulting from state activation.
• Plan D: Medal of Honor recipients and their children under 27 (undergraduate study only; income and age limits apply).

1. Figure out which Plan fits your family. For a 100%-rated veteran, the dependent's route is usually Plan A (no income test); for a lower rating, look at Plan B (income-tested, children only).
2. Apply through your County Veterans Service Office (CVSO) or the campus's veterans/admissions office, using the current application packet linked from the CalVet College Fee Waiver page.
3. Bring the veteran's VA rating documentation and the dependent's proof of relationship (and income proof for Plan B/D).
4. Re-file each academic year as required, and coordinate with the campus so the waiver is applied against the tuition and fees actually owed.

Sources CalVet · the fee-waiver fact sheet (PDF)

State Veterans' Homes & long-term care

What it is: CalVet operates eight Veterans Homes of California offering levels of care from independent living to skilled nursing, at Yountville, Barstow, Chula Vista, Fresno, Lancaster, Redding, Ventura, and West Los Angeles.

• Admission eligibility: generally an honorable (or under-honorable-conditions) discharge and age 55 or older — but the age requirement is waived for disabled or homeless veterans who need long-term care. A pre-admission clinical evaluation is required, and each home offers different levels of care, so availability depends on your care needs and the facility.
• Priority admission: veterans with a service-connected disability rating of 70% or greater, Medal of Honor recipients, former POWs, and veterans experiencing homelessness are given priority and are encouraged to apply.

1. Pick the nearest home from the CalVet Veterans Homes directory and check its levels of care.
2. Review the admission requirements; if you are disabled or homeless, note the age-55 rule is waived for you.
3. Call that home's admissions office, request the application and clinical-evaluation packet, and ask exactly what your costs would be given your VA rating and income.
4. Have your DD Form 214 and VA rating letter ready to submit.

Sources CalVet Veterans Homes · the admissions page

State hiring & civil service

What it is: California gives veterans a hiring advantage on state civil-service exams, and disabled veterans get the strongest version of it.

• Veterans' Preference (rank placement, not points): since 2014 California awards preference as top-rank placement on the eligibility list — a qualifying veteran who passes the exam is moved into the top rank, greatly improving the odds of an interview, rather than getting a fixed number of bonus points.
• Who qualifies: veterans, the widow or widower of a veteran, and the spouse of a 100% disabled veteran. For most veterans the preference ends once you attain permanent civil-service status; disabled veterans should confirm how the preference applies to them with CalHR, and whether the state's disabled-veteran definition (VA rating of 10% or more) affects continued eligibility.
• How you claim it: submit the Veterans' Preference Application (Form CalHR 1093) — Form CalHR 1093 (PDF) — with your unredacted Member-4 DD-214 to CalHR; once approved, the preference is on file and applies automatically to future qualifying exams you pass.

1. Submit Form CalHR 1093 with your DD-214 (and VA rating letter) to CalHR before or when you take a state exam.
2. Confirm your preference is on file so it is applied to the top rank on every list you qualify for.
3. Browse and apply for state jobs at CalCareers.

Sources CalCareers · CalHR (current Form 1093, Rev 07/2025)

Other: burial, business license

What it is: a couple of smaller but valuable programs — free burial at a state veterans cemetery, and a business-license/peddler fee waiver for disabled veterans.

• State veterans cemeteries: CalVet operates three — the California Central Coast Veterans Cemetery (Seaside), the Northern California Veterans Cemetery (Igo), and the Yountville Veterans Cemetery. There is no interment fee for eligible veterans (generally those who served on active duty other than for training and were honorably discharged), and eligible veterans are entitled to military funeral honors. Eligibility is determined at no cost using Form VSD-002, Eligibility for Burial Benefits Determination (PDF).
• Business license / peddler fee waiver: a disabled veteran who is honorably discharged and physically unable to earn a livelihood by manual labor is exempt from municipal, county, and state business-license taxes and fees to hawk, peddle, or vend goods (alcohol excluded), including from a fixed location. It is administered locally, so you apply through your city or county licensing authority with proof of honorable discharge and VA disability documentation.

1. For burial, have your family (or you, in advance) request an eligibility determination and review options through CalVet's state veterans cemeteries; a funeral home requests military honors.
2. For the business-license waiver, take your DD-214 and VA disability letter to your city or county business-licensing office and ask for the disabled-veteran exemption.

Sources CalVet — cemeteries · the burial-benefits guide (PDF) · CalVet — business-license waiver

Who to call

CalVet (the California Department of Veterans Affairs) is your single front door for the state programs above, and your County Veterans Service Office (CVSO) is your free, in-person help for both these benefits and VA claims.

• CalVet website: calvet.ca.gov; benefits hub: CalVet Veteran Services
• Property tax questions: your county assessor (they administer the exemption) and the State Board of Equalization exemption page
• Find your local County Veterans Service Office through CalVet Veteran Services

1. Anything tied to your actual VA rating — filing a new claim, appealing, or arguing for a higher percentage — goes to a free accredited VSO or your CVSO. Find one through CalVet or at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, tolls, parks, education, homes, hiring) go to the specific office linked in that section, or start at calvet.ca.gov.

← All states