How to file your California homeowners' property tax exemption after closing

After you close on a home in California, one of the smallest but most overlooked steps is filing for the homeowners' property tax exemption. It won't change your life. It's roughly $70 a year. But it's free money that belongs to you, and it takes about five minutes to claim.

We mention it to every buyer we work with because almost nobody else does. It's the kind of thing that falls through the cracks between the lender, the title company, and the county. So we wrote it down here.

What the homeowners' exemption is

California allows homeowners who live in their property as a primary residence to reduce the assessed value of that property by $7,000. That $7,000 reduction is applied before the county calculates your property tax bill.

Under the base 1% Proposition 13 rate, a $7,000 reduction in assessed value saves you about $70 per year. If your area has voter-approved bonds or special assessments layered on top of the base rate, the savings could be slightly more. It's not a large amount, but it adds up over the years you own the home, and there is no reason to leave it on the table.

Who qualifies

You qualify if you own and occupy the home as your primary residence as of January 1 of the tax year. That's the key date. The county looks at who owns the property and who lives in it on January 1 to determine eligibility for that fiscal year.

If you bought the home in September and moved in right away, you would qualify for the exemption starting the following January 1. If you own the home but rent it out, you do not qualify. If you own two homes and only one is your primary residence, the exemption applies to the one you live in.

How to file

The form is called the Claim for Homeowners' Property Tax Exemption. The state form number is BOE-266. You file it with the county assessor's office in the county where the property is located.

In Los Angeles County, you can download the form from the assessor's website at assessor.lacounty.gov or request one by calling their office. You fill in your name, the property address, your assessor's parcel number (which is on your property tax bill or your closing documents), sign it, and mail it in. Some counties also accept the form online or by email. There is no filing fee.

The form is short. It asks you to confirm that you own the property, that you live in it as your primary residence, and that you are not claiming the exemption on any other property. That's it.

When to file

You need to be the owner and occupant of the property as of January 1 of the tax year you're claiming. The filing deadline to receive the full exemption for that tax year is February 15. If you file after February 15 but on or before December 10, you receive 80% of the exemption ($5,600 off assessed value) for that year and the full amount going forward. File after December 10 and you receive no exemption for that year.

There is no penalty for filing after the deadline. You just get a smaller benefit for the first year. The important thing is to file. Once the exemption is on the property, it stays in place for every future year as long as you continue to own and occupy the home.

What happens if you forget

If you've owned your home for a few years and never filed, you can still file for future years. The exemption will take effect going forward. But in most California counties, you cannot retroactively claim the exemption for years you missed. Those savings are gone.

That's why we bring it up early. The sooner you file after closing and moving in, the sooner the reduction appears on your property tax bill. If you closed recently and haven't filed yet, now is the time.

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How this connects to your other post-closing taxes

The homeowners' exemption is separate from the supplemental property tax bill you receive after closing. The supplemental bill is a one-time reassessment charge. The exemption is an ongoing annual reduction. They are handled by different parts of the county and require different actions on your part.

If you're working through your post-closing tasks, our after closing checklist covers both of these items along with everything else that needs attention in the first few months of ownership.

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Why we bring this up

At The JJFerrer Group, part of the job is making sure you know about the small things that add up. Filing this form takes five minutes. The savings compound every year. And nobody at the county is going to call you to remind you.

We send every buyer a reminder after closing. If you need help finding the form, locating your parcel number, or confirming which assessor's office handles your property, reach out. We'll point you to the right place.

This page is for general information only. It is not tax advice. Every property and every situation is different. For questions about your specific tax situation, consult a licensed tax professional or contact your county assessor's office directly.