Under California’s Prop 13 transfer rules, homeowners who are at least 55, severely and permanently disabled, or victims of a declared disaster can carry their existing property tax assessment to a new principal residence anywhere in the state, and parents can pass a primary home or family farm to a child with limited reassessment. Both paths come from Proposition 19, which took effect in 2021 and rewrote the older rules under Revenue and Taxation Code Sections 63.1, 69.5, and the Prop 60/90/110 framework.
Who Can Move Their Assessed Value to a New Home
Revenue and Taxation Code Section 69.6 controls base year value transfers. Three groups qualify: homeowners at least 55 years old, people with severe and permanent disabilities, and victims of wildfires or other government-declared disasters.1California State Board of Equalization. Proposition 19 The replacement home has to be your principal residence, and it can sit in any California county. The old geographic restriction that limited most transfers to the same county or a short list of participating counties is gone.
Homeowners age 55 or older and those with permanent disabilities get up to three lifetime transfers.1California State Board of Equalization. Proposition 19 Any prior transfer under the older Propositions 60, 90, or 110 counts toward that total. Disaster victims have no cap when the move follows the destruction of their home.
The replacement home has to be purchased or newly built within two years of the sale of the original. The two-year window runs both directions: you can buy first and sell within two years afterward, or sell first and buy within two years.
How the New Assessed Value Is Calculated
If the replacement costs the same as or less than the sale price of the original, your old assessed value simply moves over. What counts as “equal or lesser value” depends on the timing:1California State Board of Equalization. Proposition 19
- Bought before selling the original: the replacement must cost no more than 100 percent of the original’s market value.
- Bought within one year after the sale: up to 105 percent of the sale price still qualifies.
- Bought in the second year after the sale: the threshold rises to 110 percent.
Those cushions are built in to account for rising prices between transactions.
When the replacement costs more than the applicable threshold, the transfer doesn’t disappear. The assessor takes your old assessed value and adds the difference between the replacement’s purchase price and the original’s sale price (or market value, if you bought first). Sell for $800,000 and buy for $950,000, and the extra $150,000 gets stacked on top of your existing assessed value. You keep most of the Prop 13 savings and pay market-rate tax only on the amount you bought up.
Passing Property to a Child or Grandchild
Proposition 19 also replaced the old parent-child exclusion. Under Section 63.1, a parent used to be able to transfer a primary residence of any value plus up to $1 million in other real property without reassessment. Since February 16, 2021, Section 63.2 applies, and the rules are much tighter.2California State Board of Equalization. Implementation of Proposition 19 Intergenerational Transfer Exclusion
Only two types of property still qualify: a family home that was the transferor’s principal residence, and a family farm. Rental properties, vacation homes, and commercial real estate no longer receive any parent-child exclusion.2California State Board of Equalization. Implementation of Proposition 19 Intergenerational Transfer Exclusion
Even qualifying family homes carry a value cap. If the current market value exceeds the factored base year value (the Prop 13 assessed value with 2 percent annual bumps) by more than the exclusion amount, the excess is added to the assessed value. The exclusion started at $1,000,000 and adjusts for inflation every two years. For transfers between February 16, 2025, and February 15, 2027, the figure is $1,044,586.1California State Board of Equalization. Proposition 19
An example makes the math clearer. A parent’s home has a factored base year value of $200,000 and a current market value of $1,500,000. The gap is $1,300,000. Subtract the $1,044,586 exclusion, and $255,414 gets added to the $200,000 base. The child’s new assessed value is $455,414 rather than the full $1,500,000.
The child also has to use the home as their own principal residence and file for a homeowners’ exemption or disabled veterans’ exemption within one year of the transfer. Missing that year doesn’t destroy the exclusion, but the benefit then starts from the year the exemption claim is actually filed rather than reaching back to the transfer date.3California State Board of Equalization. Proposition 19 Fact Sheet
Grandparent to Grandchild
Grandparent-to-grandchild transfers follow the same rules with one added condition: every parent of the grandchild who qualifies as a child of the grandparent must be deceased at the time of the transfer. A stepparent of the grandchild does not need to be deceased.4California Legislative Information. California Code Revenue and Taxation Code 63.1
Trusts and Inherited Property
Moving property into your own revocable living trust does not trigger reassessment. The trust is treated as an extension of the original owner for property tax purposes as long as the transferor keeps the present beneficial interest.5California State Board of Equalization. Change in Ownership – Frequently Asked Questions The reassessment question arrives when the trust creator dies and the property passes to the successor beneficiary. At that point the county assessor treats it as a change in ownership unless a statutory exclusion applies.
The successor trustee has to file a Change in Ownership Statement (Form BOE-502-D) within 150 days of the owner’s death with the assessor in every county where the decedent held real property.6California State Board of Equalization. Death of a Real Property Owner – Reporting Requirements If the property goes through probate, the personal representative files before or when the inventory and appraisal are submitted to the court.
One boundary worth flagging: Prop 13 rules only govern California property tax. Federal capital gains treatment is separate. Under Internal Revenue Code Section 1014, an heir’s cost basis in inherited property resets to fair market value at the date of death.7Office of the Law Revision Counsel. 26 USC 1014 – Basis of Property Acquired From a Decedent Lifetime gifts don’t get that reset; the child takes the parent’s original cost basis, and a gift over the annual exclusion ($19,000 for 2025 and 2026) requires the parent to file IRS Form 709.8Internal Revenue Service. Gifts and Inheritances Before choosing between a lifetime gift and an inheritance, run both the property tax and capital gains numbers.
Forms and Filing Deadlines
The right claim form depends on which transfer you’re using:9California State Board of Equalization. Property Tax Forms for Use by County Assessors Offices and Local Appeals Boards
- BOE-19-B: base year value transfer for homeowners at least 55.
- BOE-19-D: base year value transfer for severely and permanently disabled persons.
- BOE-19-V: base year value transfer for victims of wildfire or other natural disaster.
- BOE-19-P: parent-child reassessment exclusion for transfers on or after February 16, 2021.
- BOE-19-G: grandparent-grandchild reassessment exclusion for transfers on or after February 16, 2021.
Every claim needs the Assessor’s Parcel Number for the properties involved, settlement statements or closing disclosures showing exact prices, and proof of eligibility: a government-issued ID for age-based claims, a physician’s certificate for disability claims, and documentation of the family relationship (plus proof the qualifying parents are deceased) for grandparent-grandchild claims. Expect to provide Social Security numbers for everyone on title.
The completed form goes to the county assessor where the new or transferred property sits. Most counties take claims by mail, and many accept online submission.
For base year value transfers, file within three years of purchasing or completing construction on the replacement home to get the full retroactive benefit back to the purchase date.10Sacramento County Assessor. Proposition 19 – Changes to Real Property Transfers File later and relief becomes prospective, starting in the year you file rather than reaching back.
For intergenerational transfers under Section 63.2, file within three years of the transfer or before the property is transferred to a third party, whichever comes first.11California State Board of Equalization. Revenue and Taxation Code Section 63.1 Parent-Child and Grandparent-Grandchild Exclusion Questions and Answers If a supplemental or escape assessment notice arrives after that three-year window has closed, you get an additional six months from the notice date to file. Late filers who still own the property can request prospective relief starting from the lien date of the assessment year in which they file.