Bill > SB566

This bill proposes two significant changes to property tax and income tax benefits for homeowners and renters in California. First, beginning with the 2026-27 fiscal year, the bill increases the homeowners' property tax exemption from $7,000 to $50,000 for homeowners who are 62 years of age or older, which will reduce the amount of property taxes these seniors will pay. Second, for taxable years starting January 1, 2026, the bill increases the existing renter's credit, expanding benefits for qualified renters: joint filers, heads of household, and surviving spouses can receive a $550 credit (up from $120) if their adjusted gross income is $50,000 or less, while other individuals can receive a $275 credit (up from $60) if their adjusted gross income is $25,000 or less, but only if they are 62 years or older. The bill requires the Franchise Tax Board to report on the credit's usage and impact, and includes provisions to adjust income thresholds for inflation. Additionally, the bill specifies that local agencies will not be reimbursed for property tax revenues lost due to these changes, and it takes effect immediately as a tax levy.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB566