California Homestead Exemption 2026

"California homestead exemption" means two different things: a creditor protection that shields your home equity in debt and bankruptcy (CCP §704.730), and — confusingly — people also use it for the property-tax Homeowners' Exemption. This guide covers both, starting with the legal one.

📅 Last updated: 13 August 2026 · Sources: CCP §704.730, California BOE

🛡️ Equity protection 💵 $7,000 Homeowners' Exemption 📉 Prop 13 & Prop 19

California uses "homestead exemption" for two separate things. The legal homestead exemption protects a large slice of your home equity — in 2026, from roughly $371,800 up to about $743,700 — from creditors under CCP §704.730. The property-tax Homeowners' Exemption is a smaller $7,000 reduction in your assessed value. Below we cover the legal protection first, then the property-tax breaks (Homeowners' Exemption, Proposition 13 and Proposition 19).

Program	What it affects	Typical benefit	Where to apply
Homestead exemption	Home equity vs creditors / bankruptcy	Approx. $371,800–$743,700 protected in 2026, depending on county	Automatic; optional recorded declaration
Homeowners' Exemption	Property-tax assessed value	$7,000 value reduction (~$70/yr)	County assessor, form BOE-266
Proposition 13	Growth in assessed value	Caps annual increase at 2%	Applied automatically by the assessor
Proposition 19	Base-value transfers & inheritance	Keep low base value (age 55+/disabled/disaster)	County assessor claim forms
Disabled Veterans' Exemption	Property-tax assessed value	Larger exemption (instead of Homeowners')	County assessor, form BOE-261-G

The California homestead exemption (equity protection)

This is what "homestead exemption" means in California law. Under Code of Civil Procedure §704.730, it protects a portion of the equity in your principal residence from judgment creditors — people you owe who have obtained a court judgment and want to force a sale of your home to collect.

How much is protected

The exemption is the greater of:

a statutory minimum — about $371,800 in 2026 (originally $300,000), or
your county's prior-year median single-family home sale price, capped at a statutory maximum — about $743,700 in 2026 (originally $600,000).

The $300,000/$600,000 base amounts are adjusted for inflation every year since 2022 (CCP §703.150), which is how they reach roughly $371,800 and $743,700 for 2026. Note that California publishes no official dollar figure — these are practitioner calculations from the California CPI, so estimates differ by a few hundred dollars; confirm your exact amount with a California attorney. The exemption protects a dollar amount of equity, not the whole house — if your equity exceeds the exemption, a forced sale can still happen, but you keep the protected amount from the sale proceeds.

Automatic vs declared homestead

The automatic homestead applies to your principal residence with no paperwork and protects your exempt equity if a creditor forces a sale. Recording an optional Homestead Declaration (governed by CCP §704.910 et seq.) adds protection — notably it can shield the proceeds of a voluntary sale for six months so you can reinvest in a new home. You don't have to file anything to get the basic automatic protection.

What it does & doesn't protect

It protects equity from most unsecured judgment creditors. It does not defeat debts secured by the home or certain statutory liens, including your mortgage or deed of trust, property-tax liens, mechanics' liens, and other consensual liens. In bankruptcy, California debtors choose between the state's two exemption systems (the §704 set that includes this homestead, or the alternative §703 set), and federal rules can limit the homestead for recently-acquired property.

                ⚖️ This is a legal topic. Homestead protection in a real dispute depends on your equity, the type of creditor, senior liens, sale costs and bankruptcy choices. If you're facing creditor action or considering bankruptcy, speak with a qualified California attorney — this guide is general information, not legal advice.
            

The $7,000 Homeowners' Exemption (property tax)

Separate from the legal homestead, the Homeowners' Exemption is a property-tax break: it reduces the assessed value of your primary residence by $7,000, saving about $70 a year at the 1% base rate. File form BOE-266 with your county assessor; it's free, and you must own and occupy the home. File by February 15 for the full exemption (a partial exemption is available if you file later). It's a one-time claim that renews automatically until you move.

Proposition 13 — the real property-tax saving

Proposition 13 (1978) is where California homeowners actually save. It generally limits the base property-tax rate to 1% of assessed value and caps the annual increase in assessed value at 2% (the lower of 2% or inflation). Your total bill can still be higher because of voter-approved bonds, special assessments and direct charges. A change in ownership generally establishes a new base-year value at market, while qualifying new construction is separately assessed — so a long-time owner's taxable value can sit far below market value (exclusions and other exceptions can apply).

Proposition 19 — transfers & inherited homes

Proposition 19 (2021) changed two things. Homeowners who are 55+, severely disabled, or disaster victims can transfer their low Prop 13 base-year value to a replacement primary residence anywhere in California (buying a more expensive replacement adds part of the price difference to the taxable value). And it tightened parent-to-child transfers: an inherited home keeps its low base value only if the child makes it their own primary residence, and even then a value cap can apply. Claims and deadlines are handled by your county assessor.

Senior, disabled & veteran property-tax relief

Several programs cut or defer California property tax — but note they don't all stack:

Disabled Veterans' Exemption — a much larger reduction in assessed value for qualifying disabled veterans (bigger for low-income veterans), claimed on form BOE-261-G. Per the California BOE, only one exemption is allowed on a property, so a veteran normally claims this instead of the $7,000 Homeowners' Exemption.
Property Tax Postponement (PTP) — the State Controller's program lets homeowners 62+, blind or disabled with limited income and enough equity defer current-year property taxes as a lien that accrues interest.
Proposition 19 base-value transfer — for owners 55+ or severely disabled, as above.

Proposition 13's assessment limits apply on top of whichever value exemption you hold. Eligibility and filing are administered by county assessors, and local assistance programs vary — ask your assessor which apply to your property.

                🧭 What should I do?
                Lower your property tax? File the Homeowners' Exemption (BOE-266) with your county assessor.
Moving at 55+ or with a qualifying disability? Check Proposition 19 base-value transfer.
A disabled veteran? Claim the Disabled Veterans' Exemption (BOE-261-G) — not the Homeowners' Exemption.
Worried about creditors or bankruptcy? Review the homestead equity rules above and speak with a California attorney.
On a fixed income? Look into Property Tax Postponement.

            

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Frequently Asked Questions

What is the California homestead exemption?

In California, "homestead exemption" usually means the protection of your home equity from judgment creditors under Code of Civil Procedure §704.730. It stops many unsecured creditors from forcing a sale of your primary residence to reach a protected amount of equity. A separate, similarly-named property-tax break — the $7,000 Homeowners' Exemption — reduces your property tax bill; this page covers both.

How much is the California homestead exemption in 2026?

In 2026 it protects at least about $371,800, and up to about $743,700, of home equity — depending on your county's prior-year median single-family home price. These are the original $300,000/$600,000 figures under CCP §704.730 adjusted for inflation each year since 2022. California publishes no official dollar figure, so attorney calculations vary by a few hundred dollars; use your county's median and confirm with a professional for an exact number.

Is the California homestead exemption automatic?

Partly. The "automatic" homestead applies to your principal residence without any filing and protects your exempt equity if a creditor forces a sale. Recording an optional Homestead Declaration adds protection — for example it can shield the proceeds of a voluntary sale for six months. Neither version has to be filed to get the basic automatic protection.

What does the homestead exemption protect against?

It protects a set dollar amount of your home equity from most judgment creditors (unsecured debts reduced to a court judgment). It does not defeat debts secured by the home — your mortgage or deed of trust, property-tax liens, mechanics' liens, or other consensual or statutory liens. If your equity exceeds the exemption, a forced sale can still occur, but you keep the exempt amount from the proceeds.

What's the difference between the homestead exemption and the Homeowners' Exemption?

They sound alike but do different jobs. The homestead exemption (CCP §704.730) protects home equity from creditors and matters in debt and bankruptcy situations. The Homeowners' Exemption is a property-tax break ($7,000 off assessed value, filed on form BOE-266) that lowers your annual tax bill. One is about creditors; the other is about property tax.

What is the California Homeowners' Exemption?

It reduces the taxable (assessed) value of your primary residence by $7,000, saving about $70 a year at California's 1% base rate. File form BOE-266 with your county assessor by February 15 for the full exemption; it's a one-time claim that renews automatically until you move.

What is Proposition 13?

Proposition 13 (1978) generally limits the base property-tax rate to 1% of assessed value and caps the annual increase in a property's assessed value at 2% (the lower of 2% or inflation). Your total bill can still be higher because of voter-approved bonds and direct assessments. A property is reassessed to market value only when a change in ownership occurs or new construction is completed.

What is Proposition 19?

Proposition 19 (2021) lets homeowners who are 55+, severely disabled, or wildfire/disaster victims transfer their low Prop 13 base-year value to a replacement primary residence in California (buying a more expensive home adds part of the difference to the taxable value). It also limited the parent-to-child transfer exclusion to homes the child keeps as their own primary residence, subject to a value cap. Claims are filed with the county assessor.

Can I claim the Homeowners' Exemption and the Disabled Veterans' Exemption together?

No. Only one of those exemptions is allowed on the same property, and the California Board of Equalization notes the Disabled Veterans' Exemption is generally more valuable, so an eligible veteran would normally claim it instead of the $7,000 Homeowners' Exemption. Proposition 13's assessment limits still apply either way. Confirm with your county assessor.

How can California seniors reduce or defer property tax?

Seniors 55+ can use Proposition 19 to carry their low Prop 13 base value to a new home; homeowners 62+ (or blind/disabled) who meet income and equity limits can defer payment through the State Controller's Property Tax Postponement program; and every eligible owner-occupant should claim the standard $7,000 Homeowners' Exemption. Check current eligibility with your county assessor.

Official sources

California Code of Civil Procedure §704.730 — the homestead exemption statute.
California BOE — Homeowners' Exemption (form BOE-266).
California BOE — Proposition 19.
California BOE — Publication 29 (Property Tax & Proposition 13).
California BOE — Disabled Veterans' Exemption (form BOE-261-G).
California State Controller — Property Tax Postponement.

Homestead Exemption Guide — how it works in every state.
Texas Homestead Exemption · Florida Homestead Exemption
California Property Tax Calculator

⚠️ General information, not tax or legal advice. The homestead equity exemption is a legal matter; property-tax exemptions and Propositions 13/19 are administered by county assessors and the California BOE, and amounts are inflation-adjusted. Confirm current figures and your eligibility with your county assessor or a qualified professional before acting.