How does California’s new SB 296 help disabled veterans save on property taxes in Northridge and the San Fernando Valley?
Governor Newsom signed SB 296 on September 28, 2026, expanding the disabled veteran property tax exemption to cover 50% of the first $1 million in assessed home value, or 100% for qualifying low-income veterans, starting January 1, 2027.
Why SB 296 Matters Right Now for Northridge Veterans
Two days ago, California changed the game for disabled veterans who own or want to buy a home. Governor Gavin Newsom signed SB 296 into law on September 28, 2026, after the bill passed the Assembly 78-0 and the Senate 38-0, according to the Governor’s Office press release. Authored by Senator Bob Archuleta, this legislation represents the most significant expansion of the disabled veteran property tax exemption in California history.
I’m 100% Permanent and Total (P&T) myself, and I plan to utilize SB 296 as soon as it takes effect on January 1, 2027. As a U.S. Army veteran and REALTOR® with 6 years of experience across the San Fernando Valley, I’m making it my mission to ensure every veteran client I work with understands this benefit and takes full advantage of it. This is not optional knowledge. For many veterans in Northridge and surrounding communities, this is life-changing money.
So what does this actually mean for your wallet if you’re a veteran buying, selling, or already owning in the Valley? Let me break it all down.
How SB 296 Works for Northridge and San Fernando Valley Homeowners
The new law creates a two-tier exemption structure that replaces the existing, far more limited disabled veteran property tax exemption.
The Standard Exemption (50%)
If you’re a qualifying disabled veteran with household income above $83,474, you receive an exemption on 50% of the first $1 million of your primary residence’s assessed value. Here’s what that looks like at different price points across the Valley:
- $600,000 assessed value: Potential exemption on $300,000
- $800,000 assessed value: Potential exemption on $400,000
- $1,000,000 assessed value: Potential exemption on $500,000
- $1,200,000 assessed value: Exemption capped at $500,000 (50% of the first $1 million)
The Low-Income Exemption (100%)
If your household income is $83,474 or less, the exemption jumps to 100% of the first $1 million in assessed value. Both the income threshold and the $1 million cap will adjust for inflation in subsequent years.
To put that in perspective, the existing basic Disabled Veterans’ Exemption for 2027 would have been just $185,889. The existing low-income exemption would have been $278,836. SB 296 takes that standard exemption from roughly $186,000 to potentially $500,000, and the low-income exemption from roughly $279,000 to potentially $1,000,000.
That is not a minor adjustment. That is a complete overhaul.
What SB 296 Could Save You on a Northridge Home
Here’s where this gets real for anyone living in or looking at Northridge. The median single-family home sale price in Northridge reached approximately $932,000 as of 2026, per local market tracking data. In July 2026, Northridge homes were listed at a median price of $1.05 million at $522 per square foot.
If you’re a qualifying low-income veteran purchasing or owning a home at Northridge’s median assessed value of around $932,000, your entire assessed value could fall within the $1 million exemption cap. That could mean eliminating roughly $11,000 to $13,000 or more in annual property tax obligations. Over the five-year window this law is in effect (lien dates January 1, 2027 through January 1, 2032), that could add up to $55,000 to $65,000 in savings.
Even at the standard 50% exemption tier, a veteran owning a $932,000 Northridge home could see an exemption on approximately $466,000 in assessed value, translating to thousands of dollars in annual savings.
What I tell my clients is this: if you’re a veteran with a 100% disability rating, whether through direct rating or through Total Disability based on Individual Unemployability (TDIU), you need to contact the Los Angeles County Assessor’s office and start preparing your documentation now, before the January 1, 2027 lien date arrives.
How SB 296 Impacts Veterans Across the San Fernando Valley
The benefit scales differently depending on where you live or where you’re looking to buy. And in the San Fernando Valley, home values vary dramatically from one community to the next, per April 2026 closed sales data:
- Reseda: $845,500 median closed price
- Lake Balboa: $899,500 median closed price
- Chatsworth: $899,950 median closed price
- Northridge: $989,500 median closed price
- West Hills: $1,100,000 median closed price
- Woodland Hills: $1,097,500 median closed price
- Tarzana: $1,242,500 median closed price
- Encino: $2,440,000 median closed price
In communities like Reseda, Lake Balboa, and Chatsworth, where medians fall below $1 million, a qualifying low-income veteran could potentially have their entire assessed home value exempt from property taxes. In Woodland Hills and West Hills, the first $1 million would be covered with only the balance remaining taxable. Even in Encino, where the median sits at $2.44 million, a qualifying veteran would still see up to $500,000 or $1,000,000 in exempted value, saving thousands annually.
This matters if you’re selling in Northridge, too. You now have a powerful story to tell veteran buyers. With 32.7% of San Fernando Valley sellers achieving over-list-price outcomes, per valley-wide market data from April 2026, attracting motivated veteran buyers who understand their tax advantage could mean stronger offers on your home.
Who Qualifies for the SB 296 Exemption in Northridge
Not every veteran qualifies, and it’s important to understand the eligibility requirements before you count on this benefit.
You may qualify if:
- You are rated 100% disabled by the VA, or you are compensated at the 100% rate because of individual unemployability (TDIU)
- You are a veteran who is blind in both eyes or has lost the use of two or more limbs because of a service-connected injury or disease, per California’s statutory criteria
- The property is your principal place of residence
- You can provide your county assessor with documentation showing you meet the eligibility requirements, including proof of your disability rating
Surviving spouses who are unmarried and meet certain criteria may also qualify.
Important: If your disability rating is below the qualifying level, SB 296 does not apply simply because you receive some VA disability compensation. Veterans with disability ratings below 100% (or without TDIU status) should not assume eligibility.
There’s also a safeguard built into SB 296 for veterans with lower-valued homes. If your qualifying home has a full value of $371,778 or less and your household income is above the low-income limit, you can continue using the existing exemption if it provides a better outcome than the new 50% calculation.
Having closed over 40 transactions and earned a 5.0-star rating across 31 client reviews, I’ve worked with veterans throughout the buying and selling process in Northridge and across the Valley. The detail work on exemptions like this is exactly the kind of preparation that makes or breaks a transaction for veteran buyers, and I take it seriously because I’ve been through the VA system myself.
How Sellers in Northridge Can Leverage SB 296
If you’re selling your home in Northridge, this law creates a strategic marketing advantage you should not ignore. Here’s why.
Northridge homes are selling in around 19 days on market with a 99.1% list-to-sale price ratio, per 2026 market data. The entry-level sweet spot sits in the $700,000 to $875,000 range, primarily in the southern sections of the neighborhood near Tampa Avenue and Plummer Street. For a qualifying veteran buyer, a home in that range could be entirely exempt from property taxes under the low-income tier.
Think about what that means: a veteran buyer comparing two similar homes, one marketed with SB 296 awareness and one without, is far more likely to engage with the listing that speaks directly to their financial reality. Sellers who work with agents who understand veteran benefits can position their listings to attract this motivated buyer segment.
With the expanded exemption effective for lien dates starting January 1, 2027, homes closing in late 2026 and early 2027 will be the first to benefit. If you’re thinking about selling your Northridge home, timing your listing to coincide with veteran awareness of this new law could generate serious interest.
Frequently Asked Questions About SB 296 in Northridge
When does SB 296 take effect?
SB 296 applies to property tax lien dates occurring on or after January 1, 2027, and before January 1, 2032, according to the legislation on California’s Board of Equalization website. This gives qualifying veterans five lien years of expanded exemption benefits unless lawmakers extend the program. If you own or purchase a home in Northridge before that first lien date, you should file your application with the LA County Assessor as soon as the process opens.
What disability rating do I need to qualify for SB 296?
You must be rated 100% disabled by the VA, or compensated at the 100% rate through Total Disability based on Individual Unemployability (TDIU), per the bill’s eligibility requirements. Veterans who are blind in both eyes or have lost the use of two or more limbs due to service-connected causes may also qualify. Disability ratings below the qualifying threshold do not make you eligible.
Can SB 296 cover my entire property tax bill in Northridge?
If your household income is $83,474 or less and your Northridge home’s assessed value is at or below $1 million, the 100% exemption on the first $1 million could effectively eliminate your entire property tax obligation. With Northridge’s median home sale price at approximately $932,000, per 2026 market data, many qualifying veterans would fall within that range.
How much was the previous disabled veteran exemption worth?
The existing basic Disabled Veterans’ Exemption for 2027 would have been $185,889, and the low-income version would have been $278,836 for households earning $83,474 or less. SB 296 represents a massive increase, raising the potential standard exemption to $500,000 and the low-income exemption to $1,000,000.
Does SB 296 apply to condos and townhomes in the Valley?
Yes, SB 296 applies to your principal place of residence regardless of property type, as long as you meet the qualifying disability and residency requirements. Condos and townhomes near Warner Center in Woodland Hills, for example, which typically range from $550,000 to $950,000, would generally fall well within the $1 million exemption cap.
Do surviving spouses qualify for the SB 296 exemption?
Certain unmarried surviving spouses of qualifying veterans are eligible under SB 296. You must provide the county assessor with documentation establishing your eligibility, including proof of the veteran’s disability rating and your marital and residency status.
How do I apply for the SB 296 exemption in Los Angeles County?
You must apply through the Los Angeles County Assessor’s office and provide documentation showing you meet all eligibility requirements, including proof of your VA disability rating and evidence that the property is your principal place of residence. Start gathering your documentation now so you’re ready when the filing period opens.
Will the $83,474 income threshold change over time?
Yes. Both the income threshold and the $1 million cap will be adjusted for inflation in subsequent years, per the legislation. This means the benefit should keep pace with rising costs and property values in communities like Northridge, Granada Hills, and Porter Ranch.
Can I use SB 296 if I buy a home in Encino or Tarzana above $1 million?
Absolutely. The exemption applies to the first $1 million of assessed value regardless of your home’s total price. In Tarzana, where the median closed price is $1,242,500 per April 2026 data, a qualifying low-income veteran would exempt the first $1 million, leaving only $242,500 subject to property tax.
Does SB 296 affect how much my home is worth to veteran buyers?
While SB 296 does not change your home’s market value, it significantly reduces the carrying cost for qualifying veteran buyers. In communities like Northridge, Chatsworth, Lake Balboa, and Reseda, where median prices fall at or below the $1 million cap, this could make your listing substantially more attractive to veteran buyers who understand the benefit.
The Bottom Line
SB 296 is the most significant expansion of the disabled veteran property tax exemption California has ever enacted. For veterans in Northridge and across the San Fernando Valley, this could mean thousands of dollars saved every year for the next five years, and in some cases, the elimination of your entire property tax bill.
Whether you’re a veteran homeowner looking to take advantage of this new exemption, a seller looking to attract motivated veteran buyers, or a veteran ready to purchase your next home in the Valley, the time to prepare is right now. I’m Seann Brown with Park Regency in Northridge, a U.S. Army veteran, GRI certified, and ranked number 8 of over 150 agents at my brokerage in 2025. I’m 100% P&T myself, and I will be utilizing SB 296 personally. I advocate that every qualifying veteran client I work with does the same. Call me at 818-960-3501 or visit seannhomes.com to start the conversation.
*This blog is for informational purposes only and does not constitute legal or tax advice. Consult a qualified tax professional or the Los Angeles County Assessor’s office for guidance specific to your situation. DRE #02093443.*
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