SB-566
Budget & Economy

Real property tax: Personal Income Tax Law: homeowners’ exemption: renter’s credit.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Increases property tax exemption from $7,000 to $50,000 for homeowners aged 62 and older starting in 2026.
  • Raises the renter's tax credit from $120 to $550 for qualified seniors with incomes under $50,000 beginning in 2026.
  • Applies only to primary residences and excludes rental, vacant, or secondary properties.
  • Takes effect immediately without providing state reimbursement to local agencies for lost tax revenue.
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)
Probability of Passing
We're working on it! Check back later.

Summary

Senator Grove proposes substantial increases to California's homeowners' property tax exemption and renters' tax credit, targeting relief specifically for residents aged 62 and older. The legislation would raise the homeowners' exemption from $7,000 to $50,000 of a dwelling's full value beginning in fiscal year 2026-27, while simultaneously increasing the qualified renters' credit from $120 to $550 for joint filers and from $60 to $275 for individual filers.

The homeowners' exemption applies to primary residences only, excluding rental properties, vacation homes, and properties receiving veterans' exemptions. The bill maintains existing provisions for temporary absences due to natural disasters or medical care. For the enhanced renters' credit, eligibility continues to require California residency and occupation of rental property as a primary residence for at least half the tax year, with income limits of $50,000 for joint filers and $25,000 for individuals, adjusted annually for inflation.

While the bill creates new duties for local tax officials to implement these changes, it explicitly prohibits state reimbursement to local agencies for lost property tax revenues. The legislation would take effect immediately upon enactment as a tax levy, with both the increased exemption and credit becoming available in 2026.

Get Involved

Act Now!

This bill was recently introduced. Email the authors to let them know what you think about it.

Introduced By

Shannon Grove
Shannon GroveR
California State Senator

Community Outlook

No votes yet
Positive
0%
Negative
0%

Key Dates

Next Step
Referred to the Senate Standing Committee on Revenue and Taxation
Next Step
Senate Committee
Referred to the Senate Standing Committee on Revenue and Taxation
Hearing scheduled for , 1021 O Street, Room 1200
Introduced. Read first time. To Com. on RLS. for assignment. To print.
Senate Floor
Introduced. Read first time. To Com. on RLS. for assignment. To print.
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Relevant Contacts

Profile
Shannon GroveR
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tom UmbergD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Angelique AshbyD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Jerry McNerneyD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 6 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Shannon GroveR
Senator
Bill Author
Profile
Tim GraysonD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Jerry McNerneyD
Senator
Committee Member
Profile
Suzette ValladaresR
Senator
Committee Member

Similar Past Legislation

Bill NumberTitleIntroduced DateStatusLink to Bill
California Competitiveness and Innovation Act.
February 2020
Failed
California Competitiveness and Innovation Act.
January 2018
Failed
Taxation: homeowners’ exemption and renters’ credit.
February 2017
Failed
Showing 3 of 3 items
Page 1 of 1

Key Takeaways

  • Increases property tax exemption from $7,000 to $50,000 for homeowners aged 62 and older starting in 2026.
  • Raises the renter's tax credit from $120 to $550 for qualified seniors with incomes under $50,000 beginning in 2026.
  • Applies only to primary residences and excludes rental, vacant, or secondary properties.
  • Takes effect immediately without providing state reimbursement to local agencies for lost tax revenue.

Get Involved

Act Now!

This bill was recently introduced. Email the authors to let them know what you think about it.

Introduced By

Shannon Grove
Shannon GroveR
California State Senator

Summary

Senator Grove proposes substantial increases to California's homeowners' property tax exemption and renters' tax credit, targeting relief specifically for residents aged 62 and older. The legislation would raise the homeowners' exemption from $7,000 to $50,000 of a dwelling's full value beginning in fiscal year 2026-27, while simultaneously increasing the qualified renters' credit from $120 to $550 for joint filers and from $60 to $275 for individual filers.

The homeowners' exemption applies to primary residences only, excluding rental properties, vacation homes, and properties receiving veterans' exemptions. The bill maintains existing provisions for temporary absences due to natural disasters or medical care. For the enhanced renters' credit, eligibility continues to require California residency and occupation of rental property as a primary residence for at least half the tax year, with income limits of $50,000 for joint filers and $25,000 for individuals, adjusted annually for inflation.

While the bill creates new duties for local tax officials to implement these changes, it explicitly prohibits state reimbursement to local agencies for lost property tax revenues. The legislation would take effect immediately upon enactment as a tax levy, with both the increased exemption and credit becoming available in 2026.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)
Probability of Passing
We're working on it! Check back later.

Key Dates

Next Step
Referred to the Senate Standing Committee on Revenue and Taxation
Next Step
Senate Committee
Referred to the Senate Standing Committee on Revenue and Taxation
Hearing scheduled for , 1021 O Street, Room 1200
Introduced. Read first time. To Com. on RLS. for assignment. To print.
Senate Floor
Introduced. Read first time. To Com. on RLS. for assignment. To print.
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Community Outlook

No votes yet
Positive
0%
Negative
0%

Relevant Contacts

Profile
Shannon GroveR
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tom UmbergD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Angelique AshbyD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Jerry McNerneyD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 6 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Shannon GroveR
Senator
Bill Author
Profile
Tim GraysonD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Jerry McNerneyD
Senator
Committee Member
Profile
Suzette ValladaresR
Senator
Committee Member

Similar Past Legislation

Bill NumberTitleIntroduced DateStatusLink to Bill
California Competitiveness and Innovation Act.
February 2020
Failed
California Competitiveness and Innovation Act.
January 2018
Failed
Taxation: homeowners’ exemption and renters’ credit.
February 2017
Failed
Showing 3 of 3 items
Page 1 of 1