How to Transfer Your Property Tax Base in California After Age 55

For many homeowners in California, one of the biggest concerns when moving is the potential jump in property taxes. But if you’re 55 or older, there’s good news: thanks to Proposition 19, you may be able to transfer your property tax base to a new home — even if that home costs more than the one you’re selling.

What Is a Property Tax Base Transfer?

Your “tax base” is the assessed value of your home used to calculate your property taxes. In California, this value is usually based on the year you purchased your home, which means it can be much lower than today’s market value.

Without a transfer, selling your home and buying another could mean resetting your tax base to the new home’s full purchase price — and that can result in significantly higher annual taxes. With Proposition 19, eligible homeowners can carry their old, lower tax base to a new property.

Who Qualifies?

You can transfer your property tax base if you:

• Are 55 or older at the time you sell your original home.

• Own and occupy your current home as your primary residence.

• Purchase or newly construct a replacement primary residence in California.

• Complete the sale and purchase within two years of each other.

How Proposition 19 Works

Under Proposition 19:

• You can transfer your tax base to a new home anywhere in California (location no longer matters).

• The new home can be of equal or lesser value to avoid adjustments. If it’s of greater value, your tax base will adjust upward by the difference.

• You can use this benefit up to three times in your lifetime (more if you’re replacing your home due to wildfire or disaster).

Example:
If you bought your current home years ago for $500,000 and your property taxes are based on that value, you might pay around $5,000 annually. If you sell it today for $1.2 million and buy another home for $1.25 million, your taxes on the new home will be based on your old $500,000 base plus the $50,000 difference — not the full $1.25 million value.

The Benefits of Transferring Your Tax Base

1. Significant Tax Savings – Keep your annual property tax bill manageable, freeing up cash for travel, hobbies, or family.

2. More Lifestyle Options – Move closer to family, downsize, or relocate to a new area without a tax penalty.

3. Flexibility – Buy a more expensive home if you wish, knowing your base still transfers with adjustments.

How to Apply

The process typically involves:

1. Selling your current home.

2. Purchasing your new primary residence.

3. Filing an application with the County Assessor’s Office within the required time frame (usually within two years).

4. Providing proof of age, residency, and transaction details.

Final Thoughts

If you’re over 55 and considering a move, transferring your property tax base could save you thousands of dollars a year. The rules can be nuanced, so it’s wise to work with a knowledgeable real estate professional who can guide you through the timing, value limits, and paperwork.

I help clients navigate Proposition 19 regularly — ensuring their move not only fits their lifestyle but also maximizes their financial advantage. If you’re ready to explore your options, let’s schedule a consultation to see how you can make the most of this valuable benefit.

 Sources:

• https://www.boe.ca.gov/prop19/

• https://www.boe.ca.gov/proptaxes/pdf/lta21019.pdf

• https://www.sf.gov/transfer-your-property-tax-base-replacement-home

Content by Hailey Potok of The Potok Group

Contact: DRE 02024094
The Potok Group Douglas Elliman
Potokgrouprealestate@gmail.com

150 EL CAMINO DRIVE, SUITE 150, BEVERLY HILLS, CA 90212. 310.595.3888. DRE# 01947727. © 2025 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. IF YOUR PROPERTY IS CURRENTLY LISTED WITH ANOTHER REAL ESTATE BROKER, PLEASE DISREGARD THIS OFFER. IT IS NOT OUR INTENTION TO SOLICIT THE OFFERINGS OF OTHER REAL ESTATE BROKERS. WE COOPERATE WITH THEM FULLY. EQUAL HOUSING OPPORTUNITY.