Blog > Prop 19 for Silicon Valley homeowners 55+: keep your tax base
property nerd guide · sellers
If you're 55 or older and ready to move, Proposition 19 can let you take your Prop 13 tax base with you to a new home anywhere in California. Here's how the value limits, deadlines and claim forms work, with two worked examples.
By the Property Nerds® of the Boyenga Team at Compass · NextGenAgents™
age to qualify
window to buy
time to file
transfers allowed
the short version
Why Prop 19 matters so much in Silicon Valley
Many long-time owners here pay property tax on a value set decades ago. Moving usually means starting over at today's price. Prop 19 changes that math for sellers who qualify.
Under Proposition 13, your assessed value starts at your purchase price and can rise by no more than 2 percent a year. When a home sells, the assessed value resets to market value. If you bought in Palo Alto, Cupertino or Willow Glen in the 1980s or 1990s, the gap between your current tax base and the price of your next home can be very large.
Prop 19 took effect April 1, 2021. It lets eligible homeowners sell their primary home and transfer its taxable value, called the base year value, to a replacement home. Unlike the older Prop 60 and Prop 90 rules, the new home can be in any California county, and it doesn't have to cost less. It's one of the first things we map out with sellers planning a move to a single-level home, closer to family, or to another part of the state.
eligibility
Who qualifies
According to the State Board of Equalization (BOE), you need to meet one of these on the date your original home sells:
- You're 55 or older.
- You're severely and permanently disabled.
- You're the victim of a wildfire or natural disaster.
There are three more conditions. The home you sell must have been your principal residence and eligible for the homeowners' or disabled veterans' exemption, either when it sold or within two years of buying the replacement. The replacement must become your principal residence. And the original home has to be sold. Renting it out doesn't count.
the value test
How much you can spend and keep your full base
The BOE compares your new home's market value with the market value of your original home on the date it sold. The limit depends on when you buy:
If the replacement is at or under the limit, your existing base year value transfers in full. If it costs more, you still get the transfer, but the amount above the limit is added to the transferred base. That's a big change from Prop 60 and Prop 90, which required a replacement of equal or lesser value.
worked example 1
Buy first and spend less
You buy a smaller home six months before your current home sells. Because you bought first, the limit is 100% of your original home's sale value.
| Original home's sale price | $2,000,000 |
| Original home's factored base year value | $400,000 |
| Replacement home price (bought before the sale) | $1,600,000 |
| Value limit (100% of $2,000,000) | $2,000,000 |
| Amount over the limit | $0 |
| Taxable value of the new home | $400,000 |
| Without Prop 19 (1.2% of $1,600,000) | $19,200 a year |
| With Prop 19 (1.2% of $400,000) | $4,800 a year |
Illustration only, with round made-up numbers. The 1.2% rate is an example. Actual bills are the 1% general levy plus local voter-approved bonds and assessments, so rates vary by address.
worked example 2
Sell first, then buy a pricier home
You sell first and buy eight months later, so the limit is 105%. The new home costs more than that, so the difference is added to your base.
| Original home's sale price | $2,000,000 |
| Original home's factored base year value | $400,000 |
| Replacement home price (bought 8 months after the sale) | $2,300,000 |
| Value limit (105% of $2,000,000) | $2,100,000 |
| Amount over the limit, added to the base | $200,000 |
| Taxable value of the new home ($400,000 + $200,000) | $600,000 |
| Without Prop 19 (1.2% of $2,300,000) | $27,600 a year |
| With Prop 19 (1.2% of $600,000) | $7,200 a year |
Illustration only, with round made-up numbers and an example 1.2% rate. Your assessor sets the actual values.
property nerd note
Your limit is based on what your current home actually sells for. If you buy first, you won't know your exact ceiling until your sale closes, so a stronger sale price literally raises it. The BOE generally treats the purchase price as market value unless there's evidence otherwise. That's one reason we take pricing and preparation so seriously for Prop 19 sellers.
paperwork
Filing your claim
The claim goes to the assessor in the county where your replacement home is located. It isn't filed through escrow. You have three years from buying or finishing the replacement to file.
| You qualify as | BOE claim form | Good to know |
|---|---|---|
| Age 55 or older | BOE-19-B | Up to three transfers |
| Severely and permanently disabled | BOE-19-D, plus BOE-19-DC certificate of disability | Up to three transfers |
| Wildfire or natural disaster victim | BOE-19-V | Ask the assessor about your situation |
myth
You have to stay in the same county to keep your tax base.
fact
The older Prop 60 and Prop 90 rules were more limited by county. Under Prop 19, the replacement can be anywhere in California.
myth
If the new home costs more, you lose the benefit.
fact
You keep the transfer. Only the amount above the 100%, 105% or 110% limit is added to your base.
nextgenagents™
How the Boyenga Team helps
Map the window
As NextGenAgents™, we lay out your two-year window and value limits before you list, so you know whether buying first or selling first makes more sense.
Price with the ceiling in mind
Your sale price sets your limit. Our pre-listing project management and pricing work help you get the most from both.
Work with your advisors
We coordinate with your CPA, estate attorney and lender so the timing, the paperwork and the move line up.
talk to a property nerd
Planning a move? Start with your numbers.
Find out what your home could sell for and what that means for your Prop 19 limit. Our Prop 19 page has more detail on the rules, including changes for parents and children.
faq
Prop 19 for homeowners 55+: FAQ
Does my new home have to be in Santa Clara or San Mateo County?
No. Under Prop 19, the replacement home can be in any California county. It does have to become your principal residence.
Can I rent out my current home and still transfer my tax base?
No. The original home has to be sold. If you keep it as a rental, its tax base stays with it, and your new home is assessed at its own market value.
What happens if my new home costs more than the limit?
You still get the transfer. The difference between the new home's value and your limit (100%, 105% or 110% of your original home's sale value) is added to your transferred base.
Where and when do I file?
File with the assessor in the county where the replacement home is, within three years of buying or finishing it. Homeowners 55 or older use form BOE-19-B.
How many times can I use Prop 19?
Homeowners who qualify by age or severe disability can use it up to three times, according to the BOE.
Sources: California State Board of Equalization, Proposition 19 (boe.ca.gov/prop19) and Propositions 60/90 (boe.ca.gov/proptaxes/prop60-90_55over.htm) · California Legislative Analyst's Office, Understanding California's Property Taxes (lao.ca.gov). Rules can change, and your county assessor makes the final determination. General information, not legal or tax advice.