🏡 Prop 19: Property Tax Transfer for 55+ & Severely Disabled
What Is Prop 19?
Prop 19 allows homeowners aged 55 or older or severely disabled to transfer the property tax value (base year value) from their current home to a new primary residence anywhere in California—up to three times.
ℹ️ More Information
As long as one transaction occurs on or after April 1, 2021, and the original home is sold within two years of the purchase of the replacement home, the base year value of the original home can be transferred to the replacement home under Proposition 19. A base year value transfer occurs as of the later of either
(1) the date of sale of the original home, or
(2) the purchase or completion of new construction of the replacement home.
If you purchase the replacement home prior to selling your original home, you will be responsible for property taxes based on the full fair market value of the replacement home for the period between the date of purchase and date of sale. There will be no refund for this period.
✅ Who Qualifies?
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Replacement residence must be purchased or newly constructed within two years of the sale of the original property
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Claimant must be at least age 55 years or older at the time the original property is sold
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Both the original and replacement properties must be eligible for the homeowners’ or disabled veterans’ exemption. The claimant must own and reside in the original property at the time of its sale or within two years of the purchase or new construction of the replacement
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Either one or both the sale of the original property or the purchase/completion of new construction of the replacement must occur on or after April 1, 2021
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The original property must be sold, and the replacement purchased for consideration. Consideration is defined as something of value such as payment of cash, creation or cancellation of debt, or exchange of other property
💰Taxes
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✅ You pay no extra tax if:
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The new home is purchased within 1 year of selling the old one and is up to 105% more expensive.
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The new home is purchased within 2 years and is up to 110% more expensive.
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⚠️ If your new home exceeds that value, you only pay tax on the difference.
📌 Notes to Keep in Mind
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Only primary residences qualify – not vacation or investment properties
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Transfer can happen up to 3 times per person
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No cash gifting or nominal transfers – must involve actual sale
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You’ll need a qualified property tax advisor to help with complex cases
