SB 566: Real property tax: Personal Income Tax Law: homeowners’ exemption: renter’s credit.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing property tax law, pursuant to authority granted by the California Constitution, provides for a homeowners’ exemption in the amount of $7,000 of the full value of a “dwelling,” as defined, and authorizes the Legislature to increase this exemption.

This bill, beginning with the lien date for the 2026–27 fiscal year, would increase the homeowners’ exemption, for certain homeowners, from $7,000 to $50,000 of the full value of a dwelling. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.

(2)The California Constitution requires the Legislature, whenever it increases the homeowners’ property tax exemption, to provide a comparable increase in benefits to qualified renters. The Personal Income Tax Law authorizes various credits against the taxes imposed by that law, including a credit for qualified renters in the amount of $120 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000 or less. Existing law requires the Franchise Tax Board to annually adjust for inflation these adjusted gross income amounts.

This bill, for taxable years beginning on and after January 1, 2026, would increase this credit for a qualified renter to $550 for spouses filing joint returns, heads of household, and surviving spouses, as specified, if adjusted gross income is $50,000 or less, as adjusted for inflation, and to an amount equal to $275 for other individuals, as specified, if adjusted gross income is $25,000 or less, as adjusted for inflation.

(3)Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

Sponsors

Sponsors by party (alphabetical): Republican 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026Returned to Secretary of Senate pursuant to Joint Rule 56.
2. May 14, 2025May 14 set for first hearing. Failed passage in committee. (Ayes 1. Noes 1. Page 1082.) Reconsideration granted.
3. May 1, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
4. March 18, 2025Set for hearing May 14.
5. March 5, 2025Referred to Com. on REV. & TAX.
6. February 21, 2025From printer. May be acted upon on or after March 23.
7. February 20, 2025Introduced. Read first time. To Com. on RLS. for assignment. To print.