California Veteran Financial Benefits
California Tax Benefits for Military and Veterans
Military Retirement Pay:
Military retirement income is considered taxable in California for residents. Although the Thrift Savings Plan (TSP) doesn’t withhold state or local taxes, it is reported annually via IRS Form 1099-R. Distributions from TSP accounts are subject to California state taxes, and early withdrawals may result in additional tax liabilities.
Active Duty Military Pay:
Military income earned by California residents serving within the state is taxable. However, pay received while stationed outside California is exempt from state income tax.
Military Disability Retirement Pay:
Disability retirement pay linked to service-related injuries or illnesses is excluded from California taxable income. This includes:
- Disability compensation and pensions paid to Veterans or their families
- Housing grants for specially adapted homes
- Vehicle grants for Veterans with vision loss or mobility impairments
- Benefits from dependent-care programs
VA Dependency and Indemnity Compensation (DIC):
DIC payments, awarded to eligible survivors of deceased service members or Veterans whose deaths were service-connected, are entirely tax-free under California law.
Survivor Benefit Plans (SBP, RCSBP, RSFPP):
Survivor annuities under these federal programs are subject to California state income tax.
Nonresident Military Spouse Tax Exemption:
Spouses of nonresident service members stationed in California may be exempt from state income tax if they:
- Maintain legal residency in another state
- Are in California solely to accompany the service member
- The service member is in California on official orders
Combat Pay Tax Exclusion & Filing Extension:
Combat zone pay, already excluded from federal income, is also exempt from California income tax. Service members serving in combat zones or Qualified Hazardous Duty Areas (QHDA) have a filing extension of 180 days after leaving the zoneāplus the days servedāfor both themselves and their spouse.
Request Tax Info:
To receive the 2024 Military Tax Information Packet, provide your email via the California Franchise Tax Board online request form.
California Property Tax Benefits for Veterans
Standard Veterans’ Exemption:
Eligible Veterans and their families may qualify for a $4,000 exemption on property taxes. This benefit is available if:
- The applicant’s property value does not exceed $5,000 (single) or $10,000 (married)
- Residency in California is established by January 1 of the year applying
Eligible individuals include:
- Active-duty personnel
- Honorably discharged wartime Veterans
- Veterans with service in qualifying campaigns
- Service-connected disabled Veterans
- Surviving spouses or parents of eligible Veterans
Claim forms are filed annually with the County Assessorās office.
Disabled Veterans’ Property Tax Exemption:
Disabled Veterans and eligible surviving spouses may receive enhanced property tax relief on their primary residence. Two exemption levels are offered:
- Basic Exemption: $175,298 (one-time application)
- Low-Income Exemption: $262,950 for households earning less than $78,718 annually (must reapply yearly)
Eligibility Requirements:
- Wartime service with an āother than dishonorableā discharge
- A 100% service-connected disability rating or Individual Unemployability paid at the 100% rate
- Blindness in both eyes
- Loss of use of two or more limbs
Surviving spouses qualify if they:
- Remain unmarried
- Are the survivor of a Veteran who died of a service-connected condition
- Would have qualified had the Veteran lived past January 1, 1977
Applications must be submitted to the County Assessor’s office where the property is located. Forms are available through the local assessor.
Recreation
California Hunting, Fishing & Outdoor Recreation Benefits for Veterans and Service Members
The California Department of Fish and Wildlife (CDFW) provides reduced-fee Sport Fishing and Hunting Licenses for qualifying Veterans and Service members. These include:
Disabled Veteran Licenses
Veterans who were honorably discharged and have a VA service-connected disability rating of 50% or higher may be eligible for a discounted Sport Fishing License ($10.29) or Hunting License ($9.46). To qualify, Veterans must submit a VA Benefit Summary Letter confirming honorable discharge and their disability rating.
Recovering Service Member Licenses
Active duty or reserve personnel recovering from serious service-related injuries or illnesses in outpatient treatment may also receive reduced-rate licenses. A verification letter from a military doctor or commanding officer is required to confirm eligibility. License prices are the same as those offered to disabled Veterans.
Required Documents for Prequalification
Applicants must provide:
- A valid driver’s license
- A GO ID number (new users must register through the Online License Sales & Services)
- Documentation of eligibility:
- VA Summary Letter (for disabled Veterans)
- Command letter or military medical letter (for recovering Service members)
- Contact number
- Optional email (may expedite processing)
- Proof of hunter education (for hunting licenses only)
Submission Options:
- Upload documents via the CDFW Online Portal
- Mail to a CDFW License Sales Office
- Fax to (916) 419-7585
- Request secure upload access by emailing LRB@wildlife.ca.gov
Once prequalified, licenses may be purchased online, through CDFW License Agents, or at License Sales Offices.
California State Parks: Free Lifetime Distinguished Veteran Pass
Eligible Veterans can enjoy free lifetime access to all California State Parks, including camping, boating, and day-use facilities.
To Qualify, Veterans Must:
- Be a California resident
- Have received an honorable discharge
- AND meet one of the following:
- Be a former POW
- Be a Medal of Honor recipient
- Have a VA disability rating of 50% or higher
- Served during wartime
How to Apply:
Veterans can apply through:
- ReserveCalifornia.com
- In-person at any California State Parks Pass Sales Location
- By mail using a completed application form
EDUCATION PROGRAMSā
College Tuition Fee Waiver for Veteran Dependents
The College Fee Waiver Program for dependents of Veterans waives mandatory system-wide tuition and enrollment fees at California Community Colleges, California State Universities (CSU), and University of California (UC) campuses. Please note: this waiver does not cover books, housing, or parking.
Eligibility is based on one of four plans:
š¹ Plan A
- Must be a California resident
- Dependent (spouse or child) of a Veteran who:
- Served at least one day of active duty during wartime or received a campaign/expeditionary medal
- Has a 100% service-connected disability rating or passed away due to a service-connected condition
- Child must be between 15ā26 years old (extended to age 30 if the child is also a Veteran)
- Spouses must be unremarried if the Veteran is deceased
- Cannot be used with VA education benefits
š¹ Plan B
- Available to children of Veterans with service-connected disabilities (no wartime service required)
- No age requirement
- Childās income must be below Californiaās income tax filing threshold
- May be used with VA education benefits
š¹ Plan C
- For dependents of California National Guard members who were:
- Killed,
- Permanently disabled, or
- Died from injuries sustained during state active duty
š¹ Plan D
- Available to Medal of Honor recipients and their children under age 27 with low income
- Limited to undergraduate education
- May be used with VA education benefits
ā”ļø Use the College Fee Waiver Calculator to determine eligibility.
š Submit completed applications to your local County Veterans Service Office.
š California Nonresident College Fee Waiver
This waiver allows nonresident Veterans, active-duty Service members, and their dependents to pay in-state tuition rates at California public colleges.
Eligibility includes:
- Veterans who served on active duty and were stationed in California for at least one year before discharge
- Active-duty Service members or dependents currently stationed in California (undergraduate or graduate level)
- Limitations apply to graduate studies (2 years for Service members, 1 year for dependents)
ā”ļø Contact the admissions office at any CA public college for application details.
šļø California Military Department (CMD) GI Bill
The CMD GI Bill provides up to 100% tuition and fee coverage for eligible members of the California National Guard attending public or participating private colleges in California.
Requirements:
- Must be a California resident and currently serving in the CA National Guard
- Enrolled in at least 3 units per term
- Maintain a 2.0 GPA or higher
- Commit to 2 years of continued Guard service after completing studies
- Use the benefit within 10 years of starting the program
- May be used for one degree at the undergraduate, graduate, or doctoral level
š Educational Support for Military Children
Interstate Compact on Educational Opportunity for Military Children (MIC3)
California participates in this agreement to ensure smooth educational transitions for military-connected students. It supports:
- Quick enrollment despite transfer delays
- Fair placement in classes and activities
- Consistent graduation pathways
- Interstate coordination among schools and families
š« California Purple Star Schools
The Purple Star School Designation honors Kā12 schools that go above and beyond to support military families. To qualify, schools must:
- Appoint a trained military liaison
- Maintain a dedicated military resources webpage
- Ensure school staff are aware of challenges faced by military-connected students
This designation highlights schools that foster a welcoming, flexible environment for children of Service members.
HOUSING: THE FOLLOWING ARE THE SITES FOR VETERANS HOMES
California State Veterans Homes
California operates multiple State Veterans Homes to support and care for eligible Veterans and their spouses across the state, including facilities in:
California State Veterans Home at Barstow
California State Veterans Home at Chula Vista
California State Veterans Home at Fresno
California State Veterans Home at Lancaster
California State Veterans Home at Redding
California State Veterans Home at Ventura
California State Veterans Home at West Los Angeles
California State Veterans Home at Yountville
Admission Requirements:
To qualify for admission, applicants must:
- Be a Veteran of the U.S. Armed Forces with active duty service (excluding training-only service)
- Have received an Honorable or General (Under Honorable Conditions) discharge
- Be 55 years of age or older (no age limit for those who are disabled or experiencing homelessness)
- Be a California resident at the time of application
- Have current medical insurance coverage
Spouse and Domestic Partner Eligibility:
Non-Veteran spouses or domestic partners may also be eligible if they:
- Apply jointly with the eligible Veteran
- Are the surviving spouse or domestic partner of a deceased Medal of Honor recipient or former POW (a joint application is not required in these cases)
- Were married to or in a registered domestic partnership with the Veteran for at least one year
- Are at least 55 years old (waived for disabled or homeless applicants)
- Live in California at the time of applying
- Are covered by a medical insurance plan
Priority Admission:
Preference is given to Medal of Honor recipients, former POWs, Veterans with wartime service, homeless Veterans, and those with a service-connected disability rating of 70% or higher.
Employment & Job Training Opportunities for Veterans in California
Veterans’ Preference in California State Employment
Veterans, along with their spouses and surviving spouses, may receive hiring preference for California state jobs. This preference applies to open and non-promotional positions for applicants who meet eligibility requirements. Those who pass a civil service exam are ranked higher on hiring lists, improving their employment prospects. However, this preference does not apply after attaining permanent civil service status.
Preference Point System:
- 5-Point Preference: Granted to Veterans who served:
- During wartime,
- From April 28, 1952 ā July 1, 1955,
- More than 180 consecutive days (not for training) between Jan 31, 1955 ā Oct 15, 1976,
- During the Gulf War (Aug 2, 1990 ā Jan 2, 1992),
- More than 180 days from Sep 11, 2001 ā Aug 31, 2010 (Operation Iraqi Freedom), or
- In a campaign/expedition recognized by a campaign medal (e.g., Panama, Lebanon, Somalia).
- 10-Point Preferences:
- Compensable Disability (CP): For Veterans with a VA disability rating between 10ā30%.
- 30% Compensable Disability (CPS): For Veterans with a VA disability rating of 30% or higher.
- Disability (XP): For those receiving military or VA disability benefits or awarded a Purple Heart.
- Derived Preference (XP): For spouses, surviving spouses, or mothers of qualifying Veterans, provided the Veteran cannot or does not qualify for federal employment.
Eligibility Criteria:
Applicants must have:
- Served on active duty for at least 30 days during wartime or in a campaign that awarded an expeditionary medal, or
- Served 181+ consecutive days and been discharged under conditions other than dishonorable.
Spouses of 100% disabled Veterans and surviving spouses may also be eligible.
Veterans and Promotional Exams:
Veterans who retired or were honorably discharged can also receive preference in promotional state job exams if they pass and meet all position qualifications.
Disabled Veteran Business Enterprise (DVBE) Program
California supports disabled Veteran-owned businesses by setting a goal for state agencies to award 3% of contracts to certified DVBEs. Contracts can be awarded directly to DVBEs for most services and goods up to $249,999.99 (or $388,000 for public works). Certification lasts two years.
DVBE Assistance Includes:
- Navigating the bidding and contracting process
- Connecting businesses with contracting officers
- Serving as advocates for Veteran entrepreneurs
- Addressing DVBE-related legal or procedural issues
Business License Fee Exemptions
Honorably discharged Veterans who sell merchandise (not services or alcohol) may qualify for an exemption from local and state business license taxes and fees. Applicants must show proof of honorable discharge and check with their local authorities for specific requirements.
California State Military Leave Policies for Employees
Short-Term Leave:
Available for annual training or inactive duty (e.g., drills) for up to 6 months. One additional travel day is permitted unless otherwise specified in orders.
Long-Term Leave:
Eligible for employees called to active duty for 6+ months (up to 5 years), with some federal exceptions. The state covers the first 30 days of salary. Employees must report to duty within 90 days of their last workday or approved time off.
Emergency Leave:
Granted to California National Guard members activated for state duty. Employees receive pay for the first 30 days, plus travel time.
War or National Emergency Leave:
Reserved for employees called to federal duty during declared emergencies. Covers duty period plus travel. State salary continues for the first 30 days.
Return to Work Deadlines:
- Permanent/probationary: Return within 14 days
- Temporary/limited-term: Return within 10 days
Differential Pay for Federal Active Duty
California state employees serving in the reserves who are federally activated due to the War on Terror or a national emergency may be eligible to receive the difference between their military and state salaries.
War on Terror Activation:
- Eligible for up to 760 days of differential pay
- Health and dental benefits continue for 730 days
- Vacation and sick leave accrues for 24 months
National Emergency Activation:
- Differential pay continues for 180 days
- All normal salary and benefits continue during this period
Employment Services from California Employment Development Department (EDD)
EDD offers job assistance to transitioning service members, Veterans, and their eligible spouses. Services include assessments, job training, placement, and access to job listings 24 hours before public release.
Specialized Support Includes:
- DVOPs (Disabled Veterans’ Outreach Program): Individualized services for Veterans with barriers to employment
- LVERs (Local Veteransā Employment Representatives): Outreach, employer engagement, and job development
- Veteran Representatives: Provide holistic support across services, training, and college programs
Federal Protection: USERRA (Uniformed Services Employment and Reemployment Rights Act)
Key Protections Under USERRA:
- Job Protection: Ensures reemployment in the same or equivalent role, maintaining seniority, benefits, and status
- Reasonable Accommodation: Employers must accommodate service-related disabilities
- Skill Refresh Support: Employers must help retrain returning employees
- Furlough Rights: Service members are treated as if on leave, maintaining access to non-seniority benefits
Health and Pension Plan Protection:
- Coverage can be extended for up to 24 months (may require payment of 102% of the premium)
- For absences under 31 days, benefits remain unchanged
- Pension rights are fully protected and uninterrupted
BURIALS AND MEMORIALS
The National Cemetery Administration (NCA) honors eligible Veterans and their families by offering a final resting place and a permanent memorial recognizing the Veteranās service to the country.
Veterans are buried at no cost, while there is a fee for interring spouses and dependents. Additional burial-related costsāsuch as permits or funeral home chargesāmust be covered by the Veteran or their loved ones. California may waive some fees for families experiencing financial hardship; those affected should consult cemetery personnel for details.
Who qualifies for burial in a California Veterans Cemetery?
The eligibility standards mirror those for VA National Cemeteries. For specifics, refer to the VA National Cemetery Administration Eligibility page. Generally, eligibility includes:
- Veterans discharged from active duty under conditions other than dishonorable
- Individuals who passed away while on active duty
- Those who completed 20 years of service in the Reserves or National Guard and qualify for military retirement pay (or would have qualified had they not died before age 60)
- Reserve members activated for federal service (note: active duty training alone doesn’t qualify)
- Spouses and dependent children (limited to unmarried children under 21, or under 23 if attending an approved school full-time, or children with lifelong disabilities that began before age 21)
Veterans are urged to complete the California Department of Veterans Affairs “Eligibility for Burial Benefits Determination” in advance to confirm qualification.
National Cemeteries include:
- Arvin: Bakersfield National Cemetery
- Dixon: Sacramento Valley National Cemetery
- Los Angeles: Los Angeles National Cemetery
- Riverside: Riverside National Cemetery
- San Bruno: Golden Gate National Cemetery
- San Diego: Fort Rosecrans National Cemetery
- San Diego: Miramar National Cemetery
- San Francisco: San Francisco National Cemetery
- Santa Nella: San Joaquin Valley National Cemetery
State Cemeteries Include:
California operates three state-run Veterans cemeteries along with two cemeteries dedicated to Native American Veterans, providing honorable burial options for Veterans and their qualified family members.
- Igo: Northern California Veterans Cemetary
- Yountville: Yountville Veterans Home Cemetary
- Seaside: California Central Cost Veteranās Cemetary
- Weitchpec: Yurok Veterans Cemetary
- Auberry: Big Sandy Racheria Veterans Cemetary
CALIFORNIA VA BENEFIT RESOURCES
California offers support to Veterans through a District Benefits Office, multiple Regional Benefits Offices, and various VA Medical Centers throughout the state.
CALIFORNIA VA DISTRICT BENEFITS OFFICE
- Oakland: Pacific District
CALIFORNIA VA REGIONAL BENEFITS OFFICE
- Los Angeles: Los Angeles Regional Office
- San Diego: San Diego Regional Office
- Oakland: Oakland Regional Office
CALIFORNIA VA MEDICAL CENTERS
- Fresno: Central California VA Health Care System
- Livermore: Livermore
- Loma Linda: VA Loma Linda Healthcare System
- Long Beach: VA Long Beach Healthcare System
- Los Angeles: VA Greater Los Angeles Healthcare System (GLA)
- Mather: VA Northern California Health Care System
- Menlo Park: Menlo Park
- Palo Alto: VA Palo Alto Health Care System
- San Diego: VA San Diego Healthcare System
Key Information on California Veteran Benefits:
If youāre applying for VA benefits for the first time, be sure to include a copy of your DD214 (military discharge document). This paperwork contains essential details such as your name, Social Security number, service branch, service dates, and type of discharge. Most VA benefits are available to those with honorable or general discharges.
Itās strongly recommended that Veterans store their DD214 and medical records in a safe and accessible location for both themselves and family members. These documents should be protected from damage or tamperingāconsider using a locked safe or secure file system.
Eligibility for most benefits hinges on a discharge from active duty that isnāt dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, Coast Guard, or as a commissioned officer in the Public Health Service, Environmental Services Administration, or NOAA.
Veterans who received a dishonorable discharge through a general court-martial may be disqualified from most VA benefits. However, certain incarcerated Veterans and those on parole may still qualify for limited services. VA regional offices can assist in evaluating benefit eligibility in such unique circumstances, including cases with multiple discharge statuses.
California Veteran Benefits
Disabled Veterans in California with a VA rating of 90% or below might be entitled to extra benefits. Reach out to Vital Veterans Consultants for a no-cost, no-obligation consultation. Our team can evaluate your current claim and help determine if you’re eligible for additional support.
*Information current as of June 2024.
