If you're 55 or older and thinking about making a move, Prop 19 could save you thousands of dollars a year in property taxes — and most people have no idea it exists.
Property taxes in California are unique. Thanks to Proposition 13 (passed in 1978), your taxes are based on what you paid for your home — not what it's worth today. So if you bought your house in Rocklin for $280,000 in 2005 and it's now worth $750,000, you're still paying taxes based on something much closer to that original price. That's a significant advantage.
The problem? For decades, that benefit stayed with the house. If you wanted to downsize, relocate, or move closer to family, you had to leave your tax base behind and start over at current market value. For a lot of longtime California homeowners, that made moving feel financially impossible.
Prop 19, which took effect April 1, 2021, changed that. Now, qualifying homeowners can take their existing tax base with them to a new home — anywhere in California.
So What Exactly Does Prop 19 Do?
Prop 19 allows certain California homeowners to transfer their current property tax assessed value — known as the Factored Base Year Value, or FBV — to a new home when they sell and purchase a replacement property. Instead of being reassessed at the new home's full purchase price, your taxable base gets carried over.
In plain terms: you keep paying something close to what you were paying before, even if your new home costs more.
Before Prop 19, you could only transfer your tax base within the same county, and only if the replacement home cost the same or less. Prop 19 eliminated both restrictions. You can now move to any county in California, and if your replacement home costs more, only the difference gets added to your base.
Who Can Use Prop 19?
To be eligible, you must meet one of the following criteria:
- Age 55 or older — either you or your spouse must meet this at the time of sale
- Severely disabled — as defined by California law
- A victim of a wildfire or Governor-declared natural disaster
You also need to meet all of these conditions:
- The home you're selling must be your primary residence
- The replacement home must become your primary residence within one year of purchase
- The purchase or sale of the replacement home must happen within two years of the original sale (before or after)
- You can use this benefit up to three times in your lifetime
Both spouses don't need to be 55+ — just one of you. And the replacement home can be anywhere in California, any county. This is a major change from the old rules.
How Does the Tax Transfer Actually Work?
Here's the basic formula:
- Start with your Factored Base Year Value (FBV) — what your taxes are currently based on
- Compare your replacement home's purchase price to your original home's sale price
- If the replacement costs more than you sold for, that difference gets added to your FBV
- If the replacement costs the same or less, your full FBV transfers with no addition
You've lived in your Loomis home since 2001. Your current FBV is $240,000, but the home is worth $820,000.
You sell for $820,000 and buy a smaller home in El Dorado Hills for $650,000.
Since the replacement ($650K) is less than the sale ($820K), your full $240,000 FBV transfers — no addition.
Annual tax WITHOUT Prop 19: ~$7,150/yr (1.1% of $650K)
Annual tax WITH Prop 19: ~$2,640/yr (1.1% of $240K)
Annual savings: ~$4,510 — that's $45,100 over 10 years.
What if I'm buying a more expensive home?
Prop 19 still helps. Only the amount your replacement home costs above what you sold your original home for gets added to your FBV.
Same Loomis home — sell for $820,000, FBV of $240,000. This time you buy in Folsom for $920,000.
Replacement ($920K) minus sale ($820K) = $100,000 difference added to FBV.
New taxable base: $240,000 + $100,000 = $340,000.
Annual tax WITHOUT Prop 19: ~$10,120/yr (1.1% of $920K)
Annual tax WITH Prop 19: ~$3,740/yr (1.1% of $340K)
Annual savings: ~$6,380 — that's $63,800 over 10 years.
Does It Matter When I Buy or Sell?
Yes — and this is one of the most overlooked details in Prop 19. The timing of your purchase relative to your sale affects how the comparison is calculated.
- You buy before or in the same year you sell: The comparison is direct — no adjustment applied.
- You buy within 1 year after you sell: The Assessor applies a 5% upward adjustment to your replacement home's price for comparison purposes.
- You buy within 2 years after you sell: A 10% adjustment is applied.
You have a maximum of two years from the date of sale to purchase your replacement home. After that window closes, the transfer is no longer available for that transaction. Talk to your Realtor before you list so you can plan accordingly.
Calculate Your Prop 19 Savings
Plug your numbers in below to see exactly how much you could save. You'll see the difference between your transferred tax base and what you'd pay if the home were fully reassessed at purchase price.
Prop 19 Tax Base Transfer Calculator
Enter your numbers to see your estimated annual and 10-year savings.
This calculator is for educational purposes only. The County Assessor determines actual assessed values. Consult a licensed California real estate professional or tax advisor for your specific situation. Official guidance: boe.ca.gov/prop19
Frequently Asked Questions
Can I use Prop 19 if I'm buying in a different county?
Yes. One of the biggest changes Prop 19 made was removing the county restriction. You can sell in Placer County and buy in San Diego, Marin, Sonoma — anywhere in California — and still transfer your tax base.
Does my new home have to cost less than the one I sold?
No. If your replacement home costs more, you still benefit. Only the amount above your sale price gets added to your FBV. You still come out far ahead of a full reassessment.
What if I want to buy before I sell?
That works. The two-year window runs in both directions — you can purchase the replacement home up to two years before or after the sale. Buying first can actually be a smoother strategy in competitive markets.
What is a Factored Base Year Value?
Your FBV is the assessed value your county uses to calculate your property taxes. It starts at your purchase price and increases by no more than 2% per year under Prop 13. Look for "assessed value" on your current property tax bill, or contact your County Assessor's office to confirm the exact number.
How many times can I use Prop 19?
Up to three times in your lifetime. Each transfer must involve a qualifying sale and purchase, and you must meet all eligibility requirements each time.
Do I need to apply for this benefit?
Yes. You must file a claim with the County Assessor's office in the county where your replacement home is located. The claim must typically be filed within one year of purchase. Your Realtor or a tax professional can help guide you through the paperwork.
What about inherited properties?
Prop 19 also changed the rules for inherited properties — and not favorably. Before Prop 19, children could inherit a parent's home and keep the parent's low tax base regardless of whether they lived there. Now, the low tax base only transfers if the child uses the home as their primary residence. This is worth discussing with an estate planning attorney if it applies to your situation.
Is Prop 19 Worth Thinking About?
For many California homeowners 55 and older, absolutely. If you've owned your home for 10, 15, or 20+ years, the gap between your current FBV and today's home values is likely significant — and that gap represents real money every year you'd have to start paying all over again without Prop 19.
The key is planning. Prop 19 has a strict two-year window and requires the right paperwork filed with the right county. Getting your timing right — and understanding how the comparison works — can make a meaningful difference in the outcome.
If you're thinking about a move and want to understand how Prop 19 might apply to your specific situation, I'm happy to walk through the numbers with you. Use the calculator above to get a baseline, and reach out when you're ready to talk.
Ready to Run the Numbers on Your Move?
I help buyers and sellers navigate Placer and Sacramento County — including rural properties, acreage, and everything in between.
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