PROP 19 – WHAT YOU NEED TO KNOW
If you’re a homeowner in California—or planning to become one—Prop 19 is a game-changer you need to understand. Whether you’re downsizing, transferring property to your kids, or rebuilding after a disaster, Prop 19 can have a big impact on your property taxes.
Let’s dive into what California Prop 19 is all about, who it benefits, what to watch for, and how to make the most of it.
What Is Prop 19?
Prop 19, officially known as the “Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act,” passed in November 2020. It reshaped property tax rules in California—offering new benefits to certain homeowners, while placing tighter restrictions on others, especially when it comes to inheriting property.
Who Benefits?
The good news? Prop 19 gives major tax breaks to:
Homeowners 55 and older
Those who are severely and permanently disabled
Victims of wildfires or other natural disasters
These homeowners can now transfer their existing property tax base to a new primary residence anywhere in California.
Key features:
You can transfer your tax base up to 3 times (no limit for disaster victims)
The new home can be more expensive, with only the difference added to your taxable value
You must buy or build the new home within 2 years of selling your original home
This is a huge deal for people looking to move closer to family, downsize, or just change up their living situation—without the sticker shock of reassessed taxes.
Inherited Properties: What Changed?
Before Prop 19, children could inherit a parent’s home and keep their low property tax rate—even if they didn’t live there. Not anymore.
Under California Prop 19, the rules are stricter:
The property must have been the parent’s or grandparent’s primary residence
The child or grandchild must move into the home within one year
You must file for the Homeowners’ Exemption
The taxable value can only be transferred if the home’s current market value is less than $1 million over the original assessed value
If you plan to rent out the inherited property or use it as a second home, it will likely be reassessed at market value, increasing the annual property tax bill—sometimes dramatically.
Prop 19 Timeline: Don’t Miss These Deadlines
Timing matters with Prop 19. To get the full benefit:
You must buy or build your new home within 2 years of selling your original home
For inherited properties, you must move in and file the exemption within 1 year
Claim forms should be submitted within 3 years to receive full retroactive benefits
Pitfalls to Avoid
While Prop 19 can provide significant savings, it’s important to avoid common missteps:
Missing deadlines – Late filings may mean higher taxes.
Not living in inherited homes – If no one moves in, reassessment is triggered.
Not understanding the value cap – Inherited homes over the $1 million threshold may face partial reassessment.
Assuming you only get one shot – Seniors and disabled homeowners can transfer their base value three times.
Final Thoughts on Prop 19
Prop 19 opens the door for flexibility and financial relief for many California homeowners, but it also comes with new limitations—especially for families passing down property.
If you’re considering a move, inheritance planning, or simply want to understand how Prop 19 affects your real estate strategy, don’t go it alone. A real estate professional who understands these changes can help you plan ahead and maximize your tax benefits.
Want help figuring out how Prop 19 fits into your next move? Let’s connect—I’m happy to walk you through it.
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