California veteran benefits

California now excludes up to $20,000 of military retired pay from state income tax for tax years 2025 through 2029, if income is under the limits. It also offers a large property tax exemption for disabled veterans, a college fee waiver for dependents, CalVet home loans and veterans homes.

Military retirement payPartly exempt. For tax years starting in 2025 and before 2030, California excludes up to $20,000 of military retired pay, and up to $20,000 of Survivor Benefit Plan annuity payments, from income. Your federal AGI must be $125,000 or less ($250,000 or less for joint filers and surviving spouses). Retired pay above the cap, and retirees over the income limit, are still taxed. Thrift Savings Plan withdrawals are taxed.
Property taxQualified disabled veterans can claim the Disabled Veterans' Exemption on their principal home. State law sets base amounts of $100,000 (basic) and $150,000 (low income) of value, and the amounts are adjusted for inflation each year; the Department of Defense benefits library lists $180,671 and $271,009 with an income limit of $81,131 for the latest year, so confirm the current figures with your county assessor. You qualify with a wartime-period discharge other than dishonorable and a 100% service-connected rating (or 100% unemployability), blindness in both eyes, or loss of use of two or more limbs. Certain unremarried surviving spouses qualify too. File with your county assessor.
Military retirement pay exclusion
Taxes
Up to $20,000 of military retired pay and $20,000 of Survivor Benefit Plan payments excluded for tax years 2025 through 2029, if federal AGI is $125,000 or less ($250,000 joint).
Disabled Veterans' property tax exemption
Taxes
Basic exemption (about $180,671 for the latest year, base $100,000 in law) with a larger low-income version; claimed through the county assessor.
College Fee Waiver
Education
CalVet's College Fee Waiver helps eligible dependents of certain disabled or deceased veterans attend California public colleges.
Veterans Homes of California
Health & Homes
CalVet runs veterans homes offering residential and skilled nursing care; contact CalVet about eligibility.
CalVet Home Loans
Housing
CalVet offers home and farm loans to eligible veterans.
Veteran designation on driver license
Vehicles & ID
California DMV can add a Veteran designation on a license or ID card with proof of service.
Veteran plates
Vehicles & ID
California offers military and veteran specialty plates through the DMV.
Discounted fishing and hunting licenses
Recreation
California gives qualifying disabled veterans reduced-fee hunting and fishing licenses; check the Department of Fish and Wildlife.
State veterans cemeteries
Burial
California runs veterans cemeteries in addition to national cemeteries; contact CalVet for eligibility.
Veteran hiring preference
Jobs
California gives veterans credit on state civil service exams; ask CalHR for details.

Last checked 2026-11. State rules change often; confirm with California Department of Veterans Affairs (CalVet) before you rely on any benefit.

Sources