Assessor Jeffrey Prang’s 2026 Newsletter
As we move forward into 2026, our office remains focused on helping property owners stay informed, prepared, and protected. This month, we’re sharing information on meaningful property tax relief for disabled veterans, clarifying how Proposition 19 impacts family property transfers, explaining how ADUs are assessed, and highlighting our Homeowner Alert service, a free way to receive notifications if activity is recorded on your property. We hope this information helps you enter the new year with greater peace of mind and confidence about your property.
The Disabled Veterans’ Exemption recognizes the service and sacrifice of our veterans by easing the property tax burden on those who have given so much. It provides meaningful, ongoing savings for veterans rated 100% disabled by the U.S. Department of Veterans Affairs, those compensated at the 100% disability rate due to unemployability, and qualifying unmarried surviving spouses. The exemption lowers the taxable value of a veteran’s principal residence, which can translate into substantial annual savings. Eligibility is strictly tied to VA disability ratings; qualifying conditions include total disability, loss of use of two or more limbs, or blindness in both eyes. There is no filing deadline, but refunds are limited to eight years retroactive to the rating’s effective date, and filing by February 15 is necessary to ensure full benefit for the coming tax year.
We administer two exemption tiers: a basic exemption and a higher, income-restricted exemption for low-income households (both indexed annually).
- The basic exemption, sometimes called the $100,000 exemption, is available to all qualifying claimants. Because the amount is adjusted annually for inflation, the exemption for 2026 is $180,671, saving veterans roughly $1,800 on their property tax bill.
- The low-income exemption, often called the $150,000 exemption, is available to those whose annual household income is below a certain threshold. For 2026, the exemption is $271,009, which equates to about $2,700 in savings, and has an income limit of $81,131.
These are not small amounts that result in minor adjustments to tax bills; these exemptions provide significant relief that preserves housing stability for veterans and their families. They can make a meaningful difference for veterans and their families. Our office continues to coordinate with veteran service organizations and County partners to ensure eligible constituents are informed and supported through the application process.
Unfortunately, there are still many disabled veterans who qualify for this tax saving program who have not applied – likely because they are unaware of it. Today, Los Angeles County has about 7,200 Disabled Veterans’ Exemptions, but we estimate that as many as 30,000 would qualify.
For more information on the Disabled Veterans’ Exemption, visit: https://assessor.lacounty.gov/disabledvets
Proposition 19 remains one of the most consequential property tax reforms in recent years for intergenerational transfers. Intergenerational transfers refer to transfers between parents and children and, in some cases, between grandparents and grandchildren. To keep things simple, we will explore this Proposition 19 benefit as it applies to parent to child transfers.
Under Proposition 19, a child who receives their parents’ principal residence, whether by inheritance or a deed transfer, may retain their parents’ tax base (in whole or in part). While this benefit applies to a parent’s principal residence, it does not apply to other property they may own (vacation homes, income property, etc.). As such, when property other than the parents’ home is transferred to their children, that property will be reassessed at market value.
To qualify for this benefit, a child must occupy the home as their principal residence and file for the Homeowners’ Exemption within one year of the parent-child transfer. The child must also file a Claim for Reassessment Exclusion for Transfer Between Parent and child Occurring on or After February 16, 2021 (Form BOE-19-P) within three years of the transfer or before the property is transferred to a third party, whichever occurs first, or within six months of the mailing date of the Notices of Supplemental and/or Escape Assessment issued in connection with the parent-child transfer.
The Proposition 19 benefit is also subject to a value limit. If the property’s market value at the time of the parent-child transfer is $1 million or less, the child can retain their parents’ tax base without adjustment; however, if the property’s market value at the time of the parent-child transfer is over $1 million, a value comparison test is applied to determine whether or not the parents’ tax base is required to be adjusted.
Once a Proposition 19 exclusion has been approved, a child will retain their parents’ tax base only as long as they continue to occupy the home as their principal residence. If they move out, the market value of the home as of the parent-child transfer date (adjusted by the Proposition 13 annual inflation factor of no more than 2%) will become the new tax base for the property.
For more information on the Proposition 19 Intergenerational Transfer Exclusion benefit, visit https://assessor.lacounty.gov/prop19 Please stay tuned for our next newsletter where we will explore Proposition 19 Tax Base Transfers for Seniors, Property Owners with Disabilities, and Victims of Natural Disasters.
In recent years, Accessory Dwelling Units (ADUs) have moved from being viewed as niche solutions to mainstream components of Los Angeles County’s housing fabric. Moreover, the recent wildfires in January that leveled large segments of the Pacific Palisades and Altadena has brought them into the spotlight even more so as they are being used as temporary dwellings during property owners’ rebuild process. But what are ADUs? And how are they assessed?
An accessory dwelling unit is a secondary housing unit, with a full kitchen (sink, refrigerator, cooking appliance, counters and cabinet storage) and bath, typically found on a single-family residential lot. Homeowners across the County have cited various reasons for the construction of ADUs on their property: from income-generating purposes, to housing family, or even housing themselves as they renovate or repair their primary residence.
From an assessment standpoint, the construction of an ADU from the ground up or the improvement of an existing structure to meet the requirements for an ADU does not result in a reassessment of the entire property. Rather, the new construction of or conversion of an existing structure to an ADU is treated like other new construction. The Assessor’s Office determines the market value of the newly constructed ADU or additions to an existing structure by using the cost-based valuation methodology. It should be noted that the costs used by the Assessor’s Office when appraising new construction are regional market costs and may not reflect a homeowner’s actual costs. When a market value has been determined for the new structure of improvements, that value is added to the tax base for the land and existing structures.
This new construction assessment will result in an increase in a property’s assessed value and consequently its property taxes. For this reason, the effects of a new construction reassessment should be carefully considered by homeowners during the project planning phase.
For more information on the assessment of ADUs, please visit: https://assessor.lacounty.gov/adu
