Prop 19 allows eligible California homeowners to buy a new home first and then sell their current one while maintaining their low property tax base.
If you're thinking about buying a new home but don’t want to lose your low property tax rate, Proposition 19 could make that possible. Many homeowners across California aren’t aware that Prop 19 allows you to transfer your current tax base, even if you’re moving to a more expensive home or a different county. If you're 55 or older, severely disabled, or lost your home in a wildfire or disaster, this law could help you save thousands of dollars each year. Here's how it works and why it matters.
What is Prop 19? Proposition 19 is a California law that allows eligible homeowners to transfer their property tax base to a new primary residence. Before Proposition 19 passed, this was only possible in a few counties, and it could only be done once. You also had to purchase a home of equal or lesser value. That made it hard for many people to move, even when they needed to.
Tax benefits. Now, you can transfer your tax base anywhere in California. You can do it up to three times during your lifetime, and you’re no longer limited to homes of equal or lower value. If you buy a more expensive home, you’ll still get to apply your original tax base, with a slight adjustment based on the price difference. For many, this opens up real possibilities for relocating or downsizing while keeping monthly costs more manageable.
"Eligible homeowners can use Prop 19 up to three times to protect their tax savings."
You can buy a home before selling your current one. One of the most helpful changes in Prop 19 is the ability to purchase a new home first and sell your current one afterward. This is often referred to as a reverse purchase. In the past, if you bought your new home before selling your old one, you couldn’t transfer the tax base. That added a lot of stress and forced people to time everything perfectly. With Prop 19, as long as your current home is sold within a reasonable window, you can still move your tax base to the new property.
Why does this matter to you? If you've lived in your home for a long time, your property taxes are probably much lower than today’s rates. Without Prop 19, moving could mean much higher taxes based on the new home's full value. That increase can be a real burden, especially for retirees or anyone on a fixed income. Prop 19 gives you the chance to make a move that fits your life without losing the benefit of your low tax base.
If you're considering a move and think Prop 19 might apply to you, talk to a real estate professional who understands the process. There are specific rules and timelines that you must follow to ensure qualification. If you have questions or would like to explore your options, please feel free to call or text 562-316-2915 or email us at [email protected]. We’ll help you explore how Prop 19 might support your next move.
