Proposition 19 California: Complete Guide to Property Tax Transfers in 2025

California Proposition 19 is a constitutional amendment that voters passed on November 3, 2020. It made big changes to property tax rules for seniors, disabled homeowners, wildfire victims, and families inheriting property. Understanding Prop 19 is important for anyone buying, selling, or inheriting real estate in California.

What Is Proposition 19?

Proposition 19 - officially called "The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act" - made two major changes to California property tax law:

1. Expanded property tax portability for seniors 55 and over, severely disabled persons, and disaster victims (more on how this works below)
2. Limited parent-to-child property tax exclusions for inherited homes

The law replaced the old Propositions 60, 90, 58, and 193, completely reshaping how property taxes work for California homeowners.

Who Qualifies for Proposition 19 Benefits?

Seniors Age 55 and Older

If you're 55 or older when you sell your primary residence, you can transfer your existing property tax base to a new home anywhere in California. Here's what you need to know:

• Either you or your significant other must be 55 or older at the time of sale
• Both your old and new homes must be primary residences (not rentals or vacation homes)
• You need to buy the replacement home within 2 years of selling (before or after)
• You can use this benefit up to 3 times in your lifetime

Severely Disabled Persons

If you're severely and permanently disabled, you qualify for the same property tax transfer benefits as seniors. You'll need to file:

• Form BOE-19-D: Claim for Transfer of Base Year Value for Severely Disabled Persons
• Form BOE-19-DC: Certificate of Disability

Wildfire and Natural Disaster Victims

If your home was destroyed or badly damaged (50% or more damage) in a Governor-declared disaster, you qualify for property tax base transfers. This benefit helps disaster survivors rebuild without getting hit with higher property taxes.

Proposition 19 Property Tax Portability: How It Works

Under Prop 19, eligible homeowners can transfer their low Proposition 13 property tax base to a replacement home. Here's how the transfer works depending on your new home's value:

Buying a Home That Costs the Same or Less

If your new home costs the same or less than what you sold your old home for, your property tax base transfers completely. Nothing extra gets added.

Buying a More Expensive Home

If your replacement home costs more than your original home, the difference in market value gets added to your transferred tax base.

Here's an example: Let's say you sell your home for $600,000, and it had an assessed value of $200,000. Then you buy a new home for $800,000. Your new assessed value would be $200,000 + $200,000 (the $200K difference) = $400,000.

Timing Requirements

Parent-to-Child Property Tax Exclusions Under Prop 19

Proposition 19 changed the rules pretty dramatically for inheriting property in California. Here's what you need to know:

Primary Residence Requirement

The inherited property must become the child's primary residence within one year of the transfer. The child needs to:

• File for homeowner's exemption or disabled veterans' exemption within 1 year
• Keep living in the property as their primary residence
• Understand that moving out means the property gets reassessed at current market value

Value Limits (2025-2027)

The exclusion only applies if the property's market value doesn't exceed the assessed value by more than $1,044,586 (this number gets adjusted for inflation through February 2027).

If the market value goes over this threshold:

• The exclusion still applies, but only up to the limit
• The excess amount gets added to the taxable value

Who Counts as a "Child"?

Under Prop 19, an eligible "child" includes:

• Biological children
• Children adopted before age 18
• Stepchildren (as long as the parents are still married)
• Sons-in-law and daughters-in-law
• Grandchildren (but only if their parents have passed away)

What's Different from the Old Rules?

Before Prop 19 (under Propositions 58 and 193):

• Children could inherit any property without reassessment
• No requirement to actually live in the inherited property
• Rental properties and vacation homes were protected too

After Prop 19:

• Only primary residences qualify for the exclusion
• Rental properties, vacation homes, and commercial properties get reassessed
• The heir has to live in the property to keep the exclusion

What About Holding Property in an LLC?

Here's something that comes up a lot: "If I put my rental property in an LLC, can I transfer it to my kids without triggering Prop 19 reassessment?" The short answer is no. This is a common misconception that can lead to expensive surprises.

Why LLCs Don't Provide a Loophole

California Revenue and Taxation Code Section 64(c) specifically addresses this. When more than 50% of the ownership interests in a legal entity (like an LLC) change hands, county assessors treat it the same as if you transferred the property itself. They "look through" the LLC structure to see who actually controls and benefits from the property.

It doesn't matter whether you:

• Transfer the property deed directly to your children, or
• Transfer your LLC membership interests to your children

Either way, the result is the same: the property gets reassessed at current market value under Prop 19.

Common Strategies That Don't Work

"The LLC owns the property, not me." Assessors don't care about legal title. They look at beneficial ownership - who actually controls and benefits from the property. If you control the LLC that owns a rental property, you're the beneficial owner.

"I'm transferring membership interests, not real estate." Section 64(c) was written specifically to catch this. Transferring a controlling interest in an entity that owns California real estate triggers the same reassessment as transferring the property directly.

"I'll transfer small percentages over time." California anticipated this too. Revenue and Taxation Code Section 64(d) includes a cumulative transfer rule. Multiple smaller transfers that add up to a change in control still trigger reassessment.

The Bottom Line on LLCs

There's no LLC loophole for Prop 19. If you're transferring non-primary residence property to your children - whether that's a rental, vacation home, or commercial property - expect reassessment at current market value.

This doesn't mean LLCs are useless for real estate. They still provide liability protection and can offer estate planning benefits. But avoiding Prop 19 reassessment isn't one of them.

Important: Estate planning and property tax strategies are complex, especially in California. If you're thinking about transferring property to family members, work with a California tax attorney or estate planning professional who understands both the legal entity rules and Prop 19's requirements. The cost of professional advice is a lot less than the cost of an unexpected property tax increase.

How to File Proposition 19 Claims

Form BOE-19-P: Parent-Child Transfers

For inherited property transfers:

1. Get form BOE-19-P from your County Assessor's office
2. File within 3 years of when you received the property
3. You need to file before transferring the property to anyone else
4. File for homeowner's exemption within 1 year

Form BOE-19-D: Disabled Persons

For people who are severely disabled:

1. Fill out both BOE-19-D and BOE-19-DC (Certificate of Disability)
2. File with the County Assessor where your new property is located
3. You need to be living in the replacement property when you file

Form BOE-19-B: Base Year Value Transfer (Seniors 55 and Over)

For senior property tax portability:

1. File after you've completed both the sale and the purchase
2. You need to be living in your new home when you file
3. File within 3 years of buying your replacement home

Important: If you miss the filing deadline, you lose the benefit permanently. There's no extension or grace period, so mark your calendar.

Proposition 19 and Your Mortgage

Understanding how Prop 19 affects your mortgage situation is really important if you're buying or selling in California.

For Seniors Downsizing or Relocating

If you're 55 or older and thinking about selling:

• Your lower property tax base can move with you to your new home
• This can make a real difference in your monthly housing costs
• Lower property taxes might help you qualify for a bigger loan
• Factor this benefit into your affordability calculations

For Heirs Inheriting Property

If you're inheriting a family home:

• Making it your primary residence keeps the tax benefit intact
• Converting it to a rental triggers a full reassessment at today's value
• Higher property taxes after reassessment means higher monthly costs
• You might need to refinance to access equity to pay other heirs

Refinancing and Prop 19

Refinancing your mortgage does not trigger a property tax reassessment under either Proposition 13 or Proposition 19. A few things to keep in mind:

• Cash-out refinancing won't affect your assessed value
• Only changes in ownership trigger reassessment
• Major improvements that need permits might affect your assessed value

Proposition 19 Exclusion Amounts by Year

The parent-to-child exclusion cap gets adjusted for inflation every two years:

Frequently Asked Questions About Proposition 19

Can I transfer my property tax base to a more expensive home?

Yes, you can. Under Proposition 19, you can transfer your property tax base to a more expensive home. The difference in market value between your old and new home will be added to your transferred base year value. This is actually an improvement over the old Propositions 60/90, which required your new home to cost the same or less.

How many times can I use Proposition 19 property tax portability?

Eligible homeowners can use Prop 19 property tax portability up to 3 times in their lifetime. That's a big upgrade from Propositions 60/90, which only allowed one transfer.

Do all California counties participate in Prop 19?

Yes, all 58 California counties participate. Proposition 19 made it mandatory. Under the old Propositions 60/90, counties had to opt in, which limited where seniors could move and keep their tax base.

What happens if I inherit property but don't live in it?

If you inherit property and don't make it your primary residence within one year, the property will be reassessed at its current market value. The Prop 19 exclusion only works for properties you actually live in as your main home.

Can multiple heirs share the Proposition 19 exclusion?

If there are multiple heirs, only one person needs to make the property their primary residence to qualify for the exclusion. But here's a catch: if an heir later transfers their share to a sibling, that sibling-to-sibling transfer doesn't qualify for the parent-to-child exclusion.

Does refinancing affect my Prop 13/Prop 19 property tax protection?

No, it doesn't. Refinancing your mortgage won't trigger a property tax reassessment. Only a change in ownership does that. You can access your home equity through refinancing without worrying about your property taxes going up.

Is there a proposed repeal of Proposition 19?

In November 2025, a new initiative was cleared to start collecting petition signatures that would repeal the Prop 19 changes to parent-child property transfers. If it qualifies for the ballot and passes, it would bring back the previous property tax exemptions that Proposition 19 eliminated. Right now, this initiative is still in the signature-gathering phase.

Working with a Mortgage Professional

Figuring out California property tax rules while also financing a home purchase can get complicated. As a California mortgage broker, I help clients:

• Understand how Prop 19 affects their monthly housing costs
• Calculate what they can actually afford, including property tax implications
• Work with estate planning attorneys on inherited properties
• Find the right loan program for seniors using property tax portability

Next Steps

If you're thinking about buying or selling property in California, or you've inherited real estate, reach out to your local County Assessor's office for specific guidance on Proposition 19. For mortgage questions and financing options, contact me to talk through your situation.

Additional Resources

• California State Board of Equalization - Proposition 19
• BOE Proposition 19 Fact Sheet (PDF)
• Your local County Assessor's office

This article provides general information about California Proposition 19 and is not legal or tax advice. Property tax rules are complex and vary by situation. Consult with a qualified tax professional or attorney for advice specific to your circumstances.

Last updated: January 2026