South Bay Property Tax Relief Programs: What Homeowners Need to Know in 2025

Many South Bay homeowners are overwhelmed by rising property tax bills in 2025—but relief programs are available.

Property taxes in the South Bay are no small burden. In places like San Martin, homeowners pay a median tax bill of $8,629, far higher than the national average. And yet, thousands of eligible residents don’t take advantage of the relief programs available to them. In 2025, several local and state initiatives are offering real opportunities to reduce or defer property tax obligations—if you know where to look and how to apply.

Whether you’re a senior on a fixed income, a disabled veteran, or a low-income homeowner, this guide breaks down exactly what you need to know. We'll also explain how KY Tax Service & Bookkeeping can help you access and navigate these savings.

Overview of Property Tax Relief Programs Available in 2025

There are more options than most homeowners realize. From California’s Homeowner’s Exemption to localized programs from Santa Clara County, relief may come in the form of exemptions, postponements, or deferrals.

Key Changes in 2025 Legislation

This year, California has introduced three key bills—SB 23, SB 56, and SB 296—aimed at expanding tax relief access, especially for disabled veterans. These changes simplify qualification criteria and increase exemption caps.

Who Qualifies? Eligibility Criteria Snapshot

Most relief programs are based on factors like:

• Age (typically 62+)

• Disability status

• Income limits

• Property ownership and occupancy

Always check the latest criteria with a qualified tax advisor.

California Homeowner’s Exemption: The Basics and How to Apply

This is the most common and accessible exemption. It reduces your assessed home value by $7,000, which saves you around $70–$80 annually in property taxes.

Step-by-Step Application Process

1. Download the claim form from the California Board of Equalization

2. Submit the form to your county assessor’s office before February 15, 2025

3. Provide proof of residency and ownership

For full application help, visit our services page.

Common Mistakes to Avoid

• Missing the filing deadline

• Forgetting to update mailing addresses

• Not reapplying after a title change

Property Tax Postponement Program (PTP)

Despite being underutilized—only 1,337 homeowners applied in 2023—the PTP program is a lifeline for qualified seniors, blind, or disabled homeowners.

Who It’s For and How It Works

If you’re 62+ or legally disabled, with income under $51,762, you may defer your property taxes until you sell the home. The state places a lien, and interest accrues at a low rate.

Learn more directly from the California State Controller’s Office.

Application Timeline & Documents Needed

The 2025 application window runs from October 1, 2024, to February 10, 2025. You’ll need:

• A completed application

• Proof of income and age/disability

• Property tax bill

Need help with documentation? Contact us for support.

Relief Options for Seniors, Veterans, and Low-Income Homeowners

Santa Clara County offers expanded property tax relief based on life circumstances.

KY Tax Service & Bookkeeping helps seniors in South Bay defer property taxes through the PTP program.

Senior Property Tax Relief in South Bay

In the past year alone, senior applications for tax relief grew by 23%. Local programs can offer flat reductions or deferments. Deadlines and benefit amounts vary by city.

Check your local guidelines via the Santa Clara County Assessor’s Office.

Veteran and Disability-Based Relief Programs

California provides full or partial property tax exemptions for eligible veterans, especially those with service-connected disabilities. See full details on CalVet’s Housing Services.

Proposition 19 and Property Tax Base Transfers

Prop 19 allows eligible homeowners (aged 55+, disabled, or wildfire victims) to transfer their existing property tax base to a new home anywhere in California.

Who Qualifies Under Prop 19 in 2025?

• Must be buying a new primary residence

• New home value can be higher, with partial reassessment

• Transfer must occur within 2 years of sale

Local Filing Instructions for South Bay Residents

Check with the Santa Clara Assessor or contact KY Tax Prep for help with Prop 19 transfers and timelines.

BAHFA Welfare Tax Exemption Preservation Program

Unique to the Bay Area, this program helps preserve affordability in multifamily housing developments by maintaining property tax exemptions.

How This Program Preserves Affordable Housing

In 2025 alone, the Bay Area Housing Finance Authority helped preserve over 800 apartments. It’s a powerful tool to reduce displacement and stabilize rents.

Read more via the BAHFA official page.

Who Should Apply and What’s Required?

• Nonprofit or affordable housing property owners

• Submit annual filings verifying tenant incomes and compliance

Disaster Relief Property Tax Adjustments

If your property was damaged by wildfire, flood, or earthquake, you may qualify for temporary tax relief.

How to File a Claim After Damage

1. File a calamity claim within 12 months of the event

2. Provide photo evidence and repair cost estimates

3. Await property reassessment by county staff

Deadlines and Follow-Up Inspections

Santa Clara County requires follow-up site inspections and may adjust your assessed value retroactively.

Case Studies: How South Bay Residents Saved Thousands

Numbers are one thing—stories drive it home. Here are two real-world examples from our clients (names changed for privacy).

Senior in San Martin Defers Taxes Using PTP

After losing her husband, "Maria" couldn’t keep up with rising property taxes. KY Tax helped her file for PTP and defer $9,200 in taxes over 3 years, allowing her to stay in her home.

Veteran in Morgan Hill Secures Full Exemption

"James," a disabled veteran, didn’t know he qualified for full exemption. Our bookkeeping services helped him gather documents and apply—saving $3,100 annually.

How KY Tax Service & Bookkeeping Can Help You Apply

We specialize in helping homeowners like you find, qualify for, and apply to these programs. Our team understands South Bay property values, deadlines, and local processes inside and out.

Personalized Consultations and Document Prep

We'll guide you step-by-step—whether it’s preparing proof of income for PTP or filing for Prop 19 transfers.

Why DIY Isn’t Always the Best Route

Relief programs are often confusing. Don’t risk missing out because of paperwork errors or deadline confusion. Work with a tax professional you can trust—right here in San Martin.

Conclusion

With the right guidance, South Bay homeowners can take control of their property taxes and save big in 2025.

With property taxes rising, it’s more important than ever to take advantage of every available relief program. Whether it’s a small exemption or a full postponement, the savings add up—and you don’t have to go it alone.

At KY Tax Service & Bookkeeping, we help South Bay residents get the savings they deserve—accurately, on time, and stress-free. Contact us today to schedule your personalized consultation.

Frequently Asked Questions (FAQs)

How do I apply for property tax relief in Santa Clara County?

You can apply through the county assessor’s website. Many forms are available online or at their local office.

What are the income limits for California property tax postponement?

For 2025, the income cap is $51,762 for single applicants. It’s reviewed annually by the State Controller’s Office.

Can seniors get property tax breaks in South Bay?

Yes. Seniors 62+ may qualify for exemptions or the Property Tax Postponement Program, depending on income and property value.

How much can I save with the California Homeowner's Exemption?

On average, you’ll save $70–$80 per year by reducing your assessed value by $7,000.

Do I have to reapply for property tax relief programs every year?

Some programs (like PTP) require annual applications. Others (like the Homeowner’s Exemption) remain active unless ownership changes.