Prop 19 in California: the short answer
Proposition 19, approved by California voters on November 3, 2020, changed two property tax breaks. It made one more generous and the other much narrower:
- Base year value transfers (more generous): since April 1, 2021, homeowners who are 55 or older, severely and permanently disabled, or whose home was destroyed by wildfire or a declared disaster can sell their home and move its taxable value to a replacement home anywhere in California, up to three times.
- Parent-child transfers (narrower): since February 16, 2021, a child can keep a parent's taxable value only on a family home the child moves into, and only up to the old taxable value plus $1,044,586 (the amount for transfers from February 16, 2025 to February 15, 2027). Rentals and second homes are reassessed.
Both rules matter because California property tax is based on a home's assessed value, which starts at the purchase price and rises by no more than 2% a year under Prop 13. Our California property tax guide explains that system. This page covers the Prop 19 rules, forms, deadlines and the math.
Prop 19 parent-child transfer rules
Family home requirement for the parent-child exclusion
The exclusion applies only to the parent's family home, meaning their principal residence, or to a family farm. The home must become the child's principal residence: the child must move in within one year of the transfer. If the child never moves in, or the home is a rental or vacation property, the county reassesses it to market value on the date of transfer. When a parent dies, the date of death is the date of transfer.
The $1 million value limit, adjusted for inflation by the BOE
The exclusion is capped. The child keeps the parent's taxable value (the factored base year value) only if the home's market value is no more than that taxable value plus $1 million. The BOE adjusts the $1 million every other year on February 16:
| Transfer date | Adjusted Prop 19 allowance |
|---|---|
| February 16, 2021 to February 15, 2023 | $1,000,000 |
| February 16, 2023 to February 15, 2025 | $1,022,600 |
| February 16, 2025 to February 15, 2027 | $1,044,586 |
If the market value is above that limit, the amount over the limit is added to the parent's taxable value to give the child's new taxable value. The next adjustment is due February 16, 2027; check the BOE's Prop 19 page for the new figure.
Rental and other property no longer excluded
Before Prop 19, Propositions 58 and 193 also let parents pass other real property, such as rentals, with up to $1 million of taxable value excluded over a lifetime. Prop 19 ended that for transfers on or after February 16, 2021. A rental house, a vacation home or a commercial building passed to a child is now reassessed to market value. Transfers before February 16, 2021 are still governed by the old rules.
Grandparent-grandchild transfers under Prop 19
The same rules apply to transfers from grandparents to grandchildren, with one extra condition: the grandchild's parents who are the grandparent's children must both be deceased on the date of transfer. That condition did not change under Prop 19.
When a child moves out: losing the exclusion
The exclusion lasts only while an eligible child lives in the home as a principal residence. If the child moves out, the home is reassessed. If the home went to two or more children and one moves out while another moves in, the new occupant must file a new claim within one year of the previous child's move-out date.
Prop 19 parent-child worked examples
Example 1: a home worth more than the limit
The BOE's own example, updated to the current allowance. At the transfer (between February 16, 2025 and February 15, 2027), the parent's home has a taxable value of $300,000 and a market value of $1,500,000. The child moves in and files on time.
| Step | Math | Result |
|---|---|---|
| 1. Excluded amount | $300,000 + $1,044,586 | $1,344,586 |
| 2. Value over the limit | $1,500,000 - $1,344,586 | $155,414 |
| 3. Child's new taxable value | $300,000 + $155,414 | $455,414 |
At the 1% base rate the child's general levy is about $4,554 a year, against $15,000 if the home were fully reassessed to $1,500,000. Bonds and charges come on top of both figures.
Example 2: a home worth less than the limit
The parent's taxable value is $250,000 and the market value is $1,100,000. The limit is $250,000 + $1,044,586 = $1,294,586. The market value is below it, so the child keeps the $250,000 taxable value, which then rises by no more than 2% a year.
Example 3: an inherited rental house
A parent leaves a rental house with a taxable value of $180,000 and a market value of $900,000. It is not the parent's family home, so no exclusion applies. The house is reassessed to $900,000 as of the date of death, and the general levy rises from about $1,800 to $9,000 a year at the 1% rate.
Prop 19 base year value transfer for 55+, disabled and disaster victims
Who qualifies for a Prop 19 base year value transfer
You qualify if, on the date you sell your original home, you are at least 55 years old, or severely and permanently disabled at any age, or your home was substantially damaged or destroyed by a wildfire or a natural disaster declared by the Governor. Substantially damaged means more than half of the property's market value or improvement value was lost. Both homes must qualify for the homeowners' or disabled veterans' exemption, and you must own and live in the original home when you sell it or within two years of buying the replacement.
Three transfers, anywhere in California
You can use the transfer three times in your life, whatever you used under the old Propositions 60, 90 and 110, which allowed one. The replacement can be in any California county. The earlier disaster relief rule under Proposition 50, by contrast, required a replacement in the same county within five years.
Two-year window to buy or build the replacement
You must buy or finish building the replacement home within two years of selling the original, before or after the sale. Both the sale and the purchase must be for consideration, such as cash, the creation or cancellation of debt, or an exchange of other property, so a gift is not enough. At least one of the two transactions must be on or after April 1, 2021.
The 100%, 105% and 110% value rules
The replacement can cost any amount, but only an "equal or lesser value" replacement carries over your taxable value unchanged. Equal or lesser value means:
- up to 100% of the original home's market value if you buy the replacement before you sell;
- up to 105% if you buy within the first year after the sale;
- up to 110% if you buy in the second year after the sale.
Any amount above that threshold is added to your transferred taxable value.
Prop 19 portability worked examples
Example 4: downsizing to a cheaper home
Your original home has a taxable value of $300,000 and sells for $900,000. You buy a replacement for $700,000. Because the replacement is worth less, your $300,000 taxable value moves to the new home with no adjustment. Without Prop 19 the new home would be assessed at $700,000.
Example 5: buying a more expensive home first
Your original home has a taxable value of $300,000 and a market value of $600,000. You buy a $700,000 replacement before selling. The replacement is $100,000 over 100% of the original's value, so your new taxable value is $300,000 + $100,000 = $400,000, not $700,000.
Example 6: buying in the first year after the sale
Your original home has a taxable value of $100,000 and sells for $400,000. Within a year you buy a replacement for $600,000. The threshold is $400,000 x 105% = $420,000. The excess is $600,000 - $420,000 = $180,000, so your new taxable value is $100,000 + $180,000 = $280,000. At 1% that is a general levy of about $2,800 a year instead of $6,000.
Example 7: buying in the second year after the sale
Your original home has a taxable value of $250,000 and sells for $900,000. In the second year after the sale you buy a replacement for $1,050,000. The threshold is $900,000 x 110% = $990,000. The excess is $60,000, so your new taxable value is $250,000 + $60,000 = $310,000.
Prop 19 forms and filing deadlines
| Claim | BOE form | Deadline | File with |
|---|---|---|---|
| Parent-child exclusion | BOE-19-P | Within 3 years of the transfer or before a transfer to a third party, whichever is earlier | Assessor of the county where the home is |
| Grandparent-grandchild exclusion | BOE-19-G | Same as BOE-19-P | Assessor of the county where the home is |
| Homeowners' exemption for the child | BOE-266 (or BOE-261-G for disabled veterans) | Within 1 year of the transfer | Assessor of the county where the home is |
| Base year value transfer, age 55+ | BOE-19-B | Within 3 years of buying or finishing the replacement | Assessor of the county where the replacement is |
| Base year value transfer, severely disabled | BOE-19-D and BOE-19-DC (certificate of disability) | Within 3 years of buying or finishing the replacement | Assessor of the county where the replacement is |
| Base year value transfer, wildfire or disaster | BOE-19-V | Within 3 years of buying or finishing the replacement | Assessor of the county where the replacement is |
Late Prop 19 claims get prospective relief only
If you miss a deadline you can usually still qualify, but the benefit starts with the year you file instead of the date of transfer, and you pay the higher tax for the years before. A parent-child claim is also timely if filed within six months of the assessor's supplemental or escape assessment notice for the transfer.
How to file a base year value transfer claim
File after both the sale and the purchase are complete and you are living in the replacement home. The claim goes to the assessor, not through escrow, and you must own and occupy the replacement as your principal residence when you file. Each county assessor's office has the forms; the BOE lists every assessor's contact details.
Planning around Prop 19 when buying, selling or inheriting
Selling and moving after 55
Work out the 105% and 110% thresholds before you list, so you know how much you can spend on the replacement without raising your taxable value. If you buy first, the threshold is 100% of the original home's market value on the sale date. Our guide to selling a house in California covers timing, and the closing costs guide covers the costs on each side.
Inheriting a home through probate or a trust
The date of death sets the transfer date, which starts the one-year move-in clock and the three-year filing window. If the child will not live there, the home will be reassessed whether it is kept as a rental or sold. See our California probate guide for selling an inherited home.
Checking the new tax before you decide
Ask the county assessor for the current taxable value and an estimate of the market value at transfer, then apply the steps above. County guides such as Los Angeles County property tax, Orange County property tax and San Diego County property tax list local rates and assessor contacts.
Common Prop 19 mistakes
- Assuming any inherited property keeps its tax base. Only a family home the child moves into, or a family farm, qualifies.
- Missing the homeowners' exemption filing. The child must file it within one year to get the exclusion from the transfer date.
- Using the old $1 million figure. The allowance has been adjusted twice; use the one for your transfer date.
- Buying too late. The replacement must be bought or built within two years of the sale.
- Overspending on the replacement. Every dollar over the 100%, 105% or 110% threshold is added to your taxable value.
- Expecting escrow to file the claim. You file with the assessor yourself.
The BOE notes that its summaries are not legal advice and that the constitutional text and statutes control. Talk to an estate planning attorney before you transfer title.