Your local REALTOR® can help you save when moving with a Prop 19 tax break

Prop 19 Property Tax Break

Prop 19 allows eligible homeowners to transfer the tax base of their primary residence to a replacement primary residence anywhere in California….

LEARN MORE

Who Qualifies?

Eligible homeowners who qualify for a Prop 19 tax base transfer include:

  • Homeowners ages 55 and over
  • Severely disabled homeowners
  • Victims of wildfires or natural disasters
Learn How

Save When Moving

Here’s an example of a 55 year-old couple who purchased their home 30 years ago, and how the Prop 19 property tax base transfer can help them save when moving…

SEE EXAMPLE

Prop 19 Property Tax Break

Prop 19 allows eligible homeowners to transfer the tax base of their primary residence to a replacement primary residence anywhere in California….

LEARN MORE

Who Qualifies?

Eligible homeowners who qualify for a Prop 19 tax base transfer include:

Homeowners ages 55 and over

Severely disabled homeowners

Victims of wildfires or natural disasters

Learn How

Save When Moving

Here’s an example of a 55 year-old couple who purchased their home 30 years ago, and how the Prop 19 property tax base transfer can help them save when moving…

SEE EXAMPLE

Prop 19 Property Tax Base Transfer for Eligible Homeowners

Prop 19 allows eligible homeowners to transfer the taxable value of their primary residence to a replacement primary residence anywhere in California, regardless of location or value, as long as the replacement residence is purchased or newly constructed within two years of the sale of the original primary residence. Homeowners can save big on their annual property tax bills, whether they move to a replacement home that is the same price, more expensive, or less expensive than their original home.

See examples of how homeowners can save with Prop 19.

Prop 19 Property Tax Base Transfer for Eligible Homeowners

Prop 19 allows eligible homeowners to transfer the taxable value of their primary residence to a replacement primary residence anywhere in California, regardless of location or value, as long as the replacement residence is purchased or newly constructed within two years of the sale of the original primary residence. Homeowners can save big on their annual property tax bills, whether they move to a replacement home that is the same price, more expensive, or less expensive than their original home.

See examples of how homeowners can save with Prop 19.

BIG TAX SAVINGS FOR HOMEOWNERS MOVING WITH A PROP 19 TAX BASE TRANSFER

A 55-year-old couple purchased their home 30 years ago for $110,000. The taxable value of their home is now $200,000 (the $110,000 tax base value increased 2% each year for 30 years). Their annual property tax bill is $2,200 (1.1% multiplied by the taxable base). Under Prop 19, the couple can sell their home for $600,000 and transfer the property tax base of their original home to a replacement home anywhere in California, up to three times.

  • Example #1: Buying an Equal or Less Expensive Home:

    If the couple sells their home for $600,000 and buys a replacement home for the same amount or less, the couple could transfer the lower tax base of their original home to the replacement home and save $4,400 on their annual property tax bill. By transferring the original home’s tax base ($200,000) to their replacement home, the couple would pay the same amount in property taxes ($2,200) after moving – instead of paying $6,600 on the replacement home’s purchase price of $600,000.

0
[Original Home’s Tax Base] ——————————
0
[Replacement Home Price] ——————————
0
[Original Home Sales Price] —————————–
0
[Replacement Home’s New Tax Base with Prop 19]
  • Example #2 Buying a More Expensive Home:

    If the couple sells their home for $600,000 and buys a more expensive home for $700,000, they could transfer the property tax base of their original home to the replacement home and save $4,400 on their annual property tax bill. Instead of paying $7,700 in taxes on the $700,000 purchase price of the replacement home, the couple would pay $3,300 because the new tax bill would be calculated by adding the original home’s tax base ($200,000) to the difference between the purchase price of the replacement home ($700,000) and the sales price of the original home ($600,000).

0
[Original Home’s Tax Base] ——————————
0
$700,000    minus    $600,000
0
[Replacement Home’s New Tax Base with Prop 19]

BIG TAX SAVINGS FOR HOMEOWNERS MOVING WITH A PROP 19 TAX BASE TRANSFER

A 55-year-old couple purchased their home 30 years ago for $110,000. The taxable value of their home is now $200,000 (the $110,000 tax base value increased 2% each year for 30 years). Their annual property tax bill is $2,200 (1.1% multiplied by the taxable base). Under Prop 19, the couple can sell their home for $600,000 and transfer the property tax base of their original home to a replacement home anywhere in California, up to three times.

  • Example #1: Buying an Equal or Less Expensive Home:

    If the couple sells their home for $600,000 and buys a replacement home for the same amount or less, the couple could transfer the lower tax base of their original home to the replacement home and save $4,400 on their annual property tax bill. By transferring the original home’s tax base ($200,000) to their replacement home, the couple would pay the same amount in property taxes ($2,200) after moving – instead of paying $6,600 on the replacement home’s purchase price of $600,000.

0
[Original Home’s Tax Base]
0
[Replacement Home Price]
0
[Original Home Sales Price]
0
[Replacement Home’s New Tax Base with Prop 19]
  • Example #2 Buying a More Expensive Home:

    If the couple sells their home for $600,000 and buys a more expensive home for $700,000, they could transfer the property tax base of their original home to the replacement home and save $4,400 on their annual property tax bill. Instead of paying $7,700 in taxes on the $700,000 purchase price of the replacement home, the couple would pay $3,300 because the new tax bill would be calculated by adding the original home’s tax base ($200,000) to the difference between the purchase price of the replacement home ($700,000) and the sales price of the original home ($600,000).

0
[Original Home’s Tax Base]
0
$700,000    minus    $600,000
0
[Replacement Home’s New Tax Base with Prop 19]

3 Ways to Learn More About Prop 19:

Ask your local REALTOR®

Check your County Assessor’s website

Click here to see a sample Prop 19 transfer form

Copyright© 2022 CALIFORNIA ASSOCIATION OF REALTORS®

3 Ways to Learn More About Prop 19:

Ask your local REALTOR®

Check your County Assessor’s website

Click here to see a sample Prop 19 transfer form

Copyright© 2022 CALIFORNIA ASSOCIATION OF REALTORS®