It’s Time to Move up!

California Prop 19

Property Tax Transfers, Exemptions, and Revenue for Wildfire Agencies

With the passage of Proposition 19, set to take effect on April 1, 2021, the rules for tax assessment transfers have changed. In California, eligible homeowners could transfer their tax assessments to a different home of the same or lesser market value, which allows them to move without paying higher taxes. Homeowners who were eligible for tax assessment transfers are persons over 55 years old, persons with severe disabilities, and victims of natural disasters and hazardous waste contamination.

The ballot measure allowed eligible homeowners to transfer their tax assessments anywhere within the state and allow tax assessments to be transferred to a more expensive home with an upward adjustment. The number of times that a tax assessment can be transferred increased from one to three for persons over 55 years old or with severe disabilities (disaster and contamination victims would continue to be allowed one transfer.

Advantages of Prop 19

Require that inherited homes that are not used as principal residences, such as second homes or rentals, be reassessed at market value when transferred.
Require that inherited homes that are not used as principal residences, such as second homes or rentals, be reassessed at market value when transferred.
Allocate additional revenue or net savings resulting from the ballot measure to wildfire agencies and counties.

Allow eligible homeowners to transfer their tax assessments anywhere within the state and allow tax assessments to be transferred to a more expensive home with an upward adjustment.
Increase the number of times that persons over 55 years old or with severe disabilities can transfer their tax assessments from one to three.

How did the ballot measure affect inherited properties?

In California, parents or grandparents could transfer primary residential properties to their children or grandchildren without the property's tax assessment resetting to market value. Other types of properties, such as vacation homes and business properties, could also be transferred from parent to child or grandparent to grandchild with the first $1 million exempt from re-assessment when transferred.

Prop 19 eliminated the parent-to-child and grandparent-to-grandchild exemption in cases where the child or grandchild does not use the inherited property as their principal residence, such as using a property as a rental house or a second home. When the inherited property is used as the recipient's principal residence but is sold for $1 million more than the property's taxable value, an upward adjustment in assessed value would occur. The ballot measure also applied these rules to certain farms.

Prop 19 New Property Tax Estimator Calculator*

DISCLAIMER: This prop 19 new property tax estimator calculator is based on the California Association of Realtors analysis of Prop 19. These are only estimates. Each county and city has different tax assessments that may apply. To get an accurate figure you should consult with a professional tax and estate advisor. By clicking “I agree”, you accept the terms & conditions above to use the Prop 19 new property tax estimator calculator.

I agree to the terms & conditions

Primary Residence

Original Purchase Price

Primary Residence Sales Price

(Current Home Sale’s Price)

Replacement Primary Residence

(New Home Purchase Price)

Estimated Annual Property Tax (Based on Estimated 1.25% Average Assessment)

Without

Prop 19

$0.00

Difference Between Primary