California Proposition 19 Explained | Boyenga Team / Compass

prop 19, explained

Move without giving up your low property tax

If you're 55 or older, severely disabled, or lost your home to a wildfire or natural disaster, Proposition 19 lets you take your current property tax base to a replacement home anywhere in California. For longtime Silicon Valley owners, that can be the difference between staying put and finally moving. Here's how it works, with real numbers.

who

55+, severely disabled, disaster victims

where

Any California county

how often

Up to 3 times (55+ and disabled)

window

2 years before or after you sell

how the transfer works

Six steps from sale to new tax bill

Qualify when you sell

Your current home must be your primary residence with a homeowners' or disabled veterans' exemption, and you must meet the age, disability or disaster rule on the date you sell.

Buy within two years

Buy or build the replacement home within two years before or after the sale. It has to become your primary residence too.

Check "equal or lesser value"

You keep your full tax base if the new home costs up to 100% of your sale price when you buy first, 105% if you buy in the first year after selling, or 110% in the second year.

Pay tax only on the difference

Spend more than that limit and only the difference is added to your transferred tax base. You don't start over at full market value.

File the claim

File with the assessor in the county of the new home within three years of buying it: form BOE-19-B (55+), BOE-19-D (disability) or BOE-19-V (disaster).

Plan the timing

Buying first protects the 100% limit but needs a plan for two homes at once. Selling first gives you up to 110% of room. We map both before you list.

run the numbers

Two Silicon Valley examples

Downsize: Cupertino to Los Gatos

Sale price of your Cupertino home	$3,000,000
Your current assessed value (bought decades ago)	$600,000
Los Gatos replacement, bought 8 months after selling	$2,400,000
Equal-or-lesser limit (105% of sale price)	$3,150,000
New assessed value	$600,000

Instead of paying tax on $2.4 million, you pay on $600,000. At a 1.2% rate that's about $21,600 a year less.

Move up: Sunnyvale to Saratoga

Sale price of your Sunnyvale home	$2,500,000
Your current assessed value	$700,000
Saratoga replacement, bought 14 months after selling	$3,000,000
Equal-or-lesser limit (110% of sale price)	$2,750,000
Amount over the limit, added to your base	$250,000
New assessed value	$950,000

You pay tax on $950,000, not $3 million. At 1.2%, that's about $24,600 a year less.

Illustrations only, with round numbers. Actual tax rates in Santa Clara and San Mateo counties vary by area because of local bonds and assessments.

inheriting a home

What your kids keep, and what they don't

Prop 19 also changed what happens when parents pass property to children. Since February 16, 2021:

The family home

A child keeps the parent's tax base only if the child makes it their primary residence and files for the homeowners' exemption within one year. Even then, only the first $1,044,586 of value above the parent's base is excluded (for transfers from February 16, 2025 to February 15, 2027); anything above that is added.

Rentals and second homes

Other property passed to children, like rentals and vacation homes, is reassessed to market value. Grandchildren qualify for the family home rule only if their parent, the grandparent's child, has died.

property nerd note

Example: a parent's Palo Alto home has a $400,000 tax base and is worth $2,500,000. If the child moves in, the new base is $2,500,000 minus the $1,044,586 exclusion, or $1,455,414. If the child rents it out instead, the new base is the full $2,500,000. Claims go on form BOE-19-P (parent to child) or BOE-19-G (grandparent to grandchild) within three years, or before a sale to someone else. This is a big reason to plan with an estate attorney early.

Selling a home held in a family trust? The Boyenga Team works with trustees and families on trust and estate sales all the time, including when heirs live far away, and coordinates the timing with your attorney and tax advisor.

nextgenagents™

How NextGenAgents™ plan a Prop 19 move

Run your numbers

Your assessed value, a data-backed sale price and a replacement budget that stays under the limit for each timeline, side by side.

Time the sale and purchase

Buy first, sell first or close both together. We line up Compass Concierge for prep and introduce lenders for bridge financing when it fits.

Coordinate the paperwork

We work with your tax advisor, title company and the county assessor so the claim gets filed on time.

Official sources: California State Board of Equalization · Santa Clara County Assessor · San Mateo County Assessor · San Francisco Assessor. General information, not tax or legal advice; confirm your situation with the assessor and a tax professional.

Proposition 19, Property Tax Transfers Exemptions

On November 3rd, 2020 voters approved Proposition 19 (Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act), which makes sweeping changes to a property owner’s ability to transfer their Proposition 13 Assessed Value. The measure generally expands a qualifying homeowner's ability to transfer their assessed value and narrows the property tax benefits provided to inheritors of commercial and residential properties. The measure also adds new transfer provisions for victims of disasters and individuals severely handicapped.

Cal Prop 19 Modifications

Proposition 19 also substantially modifies and in some instances eliminates portions of the following initiatives:
Propositions 58 and 193: Excludes transfers between parent and child (58) or grandparent and grandchild (193) from reassessment.
Propositions 60 and 90: Homeowners 55+ years of age can sell their primary residence and transfer the base year value of that property to a replacement residence if certain conditions are met. Proposition 60 applies to intra-county transfers, while Proposition 90 applies to inter-county transfers under certain conditions
Proposition 110: Severely disabled persons can transfer the base year value of their primary residence to a replacement residence if certain conditions are met.

Do you qualify for Proposition 19?

Check to see if you qualify for Prop 19! If you qualify, Prop 19 allows you to transfer your property tax base to a new home anywhere in California, up to 3 different times! This can result in thousands and thousands of dollars in tax savings a year. Many homeowners save not thousands but tens of thousands over a year. Find out by reaching out to the Boyenga Team.

Let the Boyenga Team help guide you?

The Boyenga Team is here to offer guidance and representation, we handle the subtleties and nuances of Proposition 19, and can offer you a smooth and successful transition to your new property. Whether selling first or buying first we can help you navigate the proposition along with referring you to the best tax advisors to make sure you are following all the guidelines of proposition 19. Feel free to reach out to Eric and Janelle today.

HOW DOES PROPOSITION 19 WORK FOR YOU!

Get Offer & Sell Home

Enjoy a smooth interconnected workflow with the Boyenga Teams' seamless integrations. Let us guide you through the intricacies of Prop 19.

Find Dream Home In California

Once you have found your dream home and are in contract, we can help guide you along with the title company. how to take advantage of Prop 19.

Trade UP or Trade Down

Either way, you are able to take advantage of Prop 19 to help save you thousands to tens of thousands on property tax a year.

start here

See what Prop 19 could save you

Tell us about your current home and where you'd like to go. We'll estimate your sale price, your replacement budget under each timeline and your likely new tax bill.

Run my Prop 19 numbers Try the calculator (408) 373-1660 (650) 383-8606

faq

Proposition 19: FAQ

Who qualifies for Proposition 19?

Homeowners 55 or older, severely and permanently disabled homeowners, and owners whose home was substantially damaged by a wildfire or a natural disaster declared by the Governor. You must qualify on the date you sell.

Can a homeowner move to another county and keep their tax base?

Yes. Since April 1, 2021, you can transfer your tax base to a replacement home in any California county, not just the counties that used to accept transfers.

How many times can Prop 19 be used?

Homeowners 55 and older and severely disabled homeowners can transfer their tax base up to three times.

What if the new home costs more than the old one?

You keep your full tax base up to 100% of your sale price if you buy first, 105% if you buy within a year after selling, or 110% in the second year. Above that, only the difference is added to your transferred base.

What are the deadlines?

Buy or build the replacement within two years before or after selling, and file your claim with the county assessor within three years of buying the new home.

Do children keep a parent's tax base when they inherit?

Only for the family home, only if they make it their primary residence and file for the homeowners' exemption within one year, and only up to $1,044,586 of value above your tax base for transfers through February 15, 2027. Rentals and second homes are reassessed to market value.

Also see SB 9: splitting your lot or adding units and how we sell.

Proposition 19, explained by the Property Nerds®

Keep your low property tax base when you move, and know what your kids inherit. The rules and the real numbers for Silicon Valley homeowners.