The California homeowners' exemption takes $7,000 off the assessed value of a home its owner lives in, and it's one of the first forms a new owner should file after closing. It isn't automatic. A buyer has to claim it, even when the seller already had it, and the timing of that claim decides whether you get the full exemption or 80 percent of it.
This guide covers who qualifies, how to claim it after a purchase, the deadlines for full and partial relief, and when you have to tell the assessor it no longer applies. It's based on the state constitution, the Revenue and Taxation Code, the State Board of Equalization (BOE) page and its claim form, BOE-266, all read on November 6, 2026, plus pages from the Santa Clara, San Mateo and Alameda county assessors. Confirm the details with the assessor in your own county.
What the homeowners' exemption does
The California Constitution, in article XIII, section 3(k), exempts "$7,000 of the full value of a dwelling" occupied by an owner as a principal residence, and Revenue and Taxation Code section 218 sets the exemption at the first $7,000 of a dwelling's full value. The BOE's homeowners' exemption page describes it as "a $7,000 reduction in the taxable value for a qualifying owner-occupied home." It lowers the value your tax is figured on, not the tax itself, so the savings depends on your tax rate. Santa Clara County's assessor puts the result at a property tax savings of "approximately $70 to $80 annually."
Two features matter to a buyer:
It's a one-time filing. The BOE says the homeowner "must make a one-time filing with the county assessor where the property is located." The form adds that once granted, the exemption "remains in effect until terminated."
It doesn't transfer to a buyer. The form says "A new owner must file a claim even if the property is already receiving the homeowners' exemption." If you bought a mid-century house from a long-time owner, the exemption on the last tax bill was theirs.
The exemption doesn't change the assessed value itself; if you think that value is too high, see our guide to a Prop 8 decline in value review. Eligibility for the exemption also matters in a Prop 19 base year transfer.
Who qualifies
As of November 2026, the BOE says the home "must have been the principal place of residence of the owner on the lien date, January 1st." The claim form sets the moment at 12:01 a.m. on January 1 each year. The claimant must be an owner, a co-owner or a purchaser named in a contract of sale.
The form says the dwelling may be any place of residence subject to property tax, and its examples include a structure containing more than one dwelling unit, a condominium, a unit in a cooperative housing project, a houseboat and a manufactured home. Section 218 says the exemption doesn't apply to property that is rented, vacant, under construction on the lien date, or a vacation or secondary home of the owner, or to property receiving the veterans' exemption. The statute keeps a few exceptions, such as an owner confined to a hospital or other care facility, as long as the home isn't rented. San Mateo County's assessor notes that state law allows "only one Homeowner Exemption per owner at their principal place of residence."
If you split time between two places, the form offers three questions to find your principal residence:
Where are you registered to vote?
What home address is on your vehicle registration?
Where do you normally return after work?
If those still leave you unsure, the form says to choose the place where you spent the major portion of your time that year.
For a building with more than one unit, the form says co-owners who live there may file separate claims, but "only one exemption will be allowed per dwelling unit." If you rent out part of your parcel, such as a second unit, ask the assessor how that affects your claim before you file.
How to claim it after you buy
The claim form is BOE-266, Claim for Homeowners' Property Tax Exemption, and the BOE says it's available from the county assessor. The BOE posts a sample marked "Contact Assessor for Actual Form," so file the county's version. San Mateo County says new owners "will automatically receive an exemption application in the mail" and that there's no charge to file. Santa Clara County's assessor page offers a link to submit the claim online.
The form is short. Expect to give:
the date you acquired the property and the date you occupied it as your principal residence;
whether you own another property in California that is, or was, your principal residence, with its address and the date you moved out;
Social Security numbers for you and any co-owner or spouse who lives there, which the form says you must disclose (the completed form isn't open to public inspection);
a copy of the contract if you're buying under an unrecorded contract of sale and the assessor doesn't have one;
a signature under penalty of perjury.
If the seller's name is printed on the form you receive, the instructions say to strike it out and add your own.
Deadlines for full and partial relief
The form describes two routes to the exemption, and a buyer's closing date decides which one applies. The dates below come from the statute and the form's current revision, marked Rev. 14 (07-25), as of November 2026.
If you lived in the home on January 1
This is the annual route. Revenue and Taxation Code section 255(b) lets you file any time after you become eligible and no later than 5 p.m. on February 15, which brings the full exemption. Under section 275, a claim filed after February 15 and on or before the following December 10 gets an exemption of the lesser of $5,600 or 80 percent of the property's full value.
If you bought or finished building after January 1
A change in ownership or completed new construction usually brings a supplemental assessment, explained in our guide to the supplemental property tax in California. The form lets a new owner claim the exemption against that supplemental assessment if two things are true:
you occupy the home as your principal residence within 90 days after the change in ownership or completion of construction; and
the property isn't already receiving the homeowners' exemption or another property tax exemption of greater value for that year.
For the full amount, file by 5 p.m. on the 30th day after the Notice of Supplemental Assessment. File after that but on or before the date the first installment of the supplemental tax bill becomes delinquent, and 80 percent may be allowed. After that, no exemption is available on that supplemental assessment. The top of the form says to file by February 15 or by the 30th day after the supplemental notice, whichever comes first.
A claim filed this way also counts as your filing for the following fiscal years, so you don't file again the next January.
When you must tell the assessor it ended
The exemption stays until it's terminated, and ending it is the owner's job. Revenue and Taxation Code section 531.6 requires anyone who has received the exemption to notify the assessor when the property is no longer eligible, and the form says to do it "immediately." Common triggers include:
moving out and renting the house;
keeping the house as a second home after you move;
leaving it vacant;
selling it (the buyer then files their own claim).
In Santa Clara County, the assessor says that recording a deed, such as moving the home into or out of a trust or adding or removing an owner's name, automatically ends the exemption for the upcoming fiscal year, and a new claim is sent to the new owner of record.
The BOE says December 10 "is the last day to terminate the Homeowners' Exemption without penalty." Under section 531.6, an exemption allowed while the property wasn't eligible leads to an escape assessment with interest, and if the owner didn't give the required notice, a penalty is added (the section makes an exception for a bona fide purchaser in the case it describes). The BOE-266 form puts that penalty at 25 percent of the escape assessment. Alameda County has a Request to Remove Homeowners' Exemption form; ask your county how it takes the notice.
This is general information as of November 2026, not legal or tax advice. Rules and forms can change, so check with your county assessor or a tax advisor about your own situation.
A checklist for new owners
After closing, watch for the claim form, or ask the assessor for BOE-266.
If you closed after January 1, move in within 90 days and file within 30 days of the Notice of Supplemental Assessment.
If you lived in the home on January 1 and haven't filed, file by February 15 for the full exemption, or by December 10 for 80 percent.
Keep a copy of the claim, and check your next tax bill for the exemption.
If you move out, rent the home or keep it as a second home, notify the assessor right away, and no later than December 10.
Frequently asked questions
Do I have to file the homeowners' exemption every year?
No. The BOE calls it a one-time filing, and the claim form says it remains in effect until terminated. You file again after a termination, or when you buy a different home.
What if I miss February 15?
Under Revenue and Taxation Code section 275, a claim filed after February 15 and on or before December 10 gets the lesser of $5,600 or 80 percent of the property's full value, which the form calls 80 percent of the exemption. The form lists no relief for that year under the annual route after December 10, so file as soon as you can.
Can I claim it on a rental or a vacation home?
No. Section 218 and the claim form both exclude a home that's rented, vacant, or a vacation or secondary home, and the form adds a home that's intended to be rented.
Related reading
Prop 19 Inherited Home Rules: A Guide for Heirs of Mid-Century Houses
Bay Area Transfer Tax by City: County and City Rates for Sellers
Probate Home Sale in California: IAEA, Court Confirmation, Trusts
Property Tax Due Dates in California: Paying a Bay Area Tax Bill
More guides on this topic: Buying & Selling a Mid-Century Modern Home
Just bought a mid-century home, or planning to? Call or text the Boyenga Team at Compass at (408) 373-1660 or (650) 383-8606, or contact the Boyenga Team to go over the steps after closing.
