What Every California Homeowner Should Know About Proposition 19

Making sense of one of the most impactful property tax changes in decades.

If you’re a California homeowner—or hope to become one—understanding Proposition 19 could save your family tens of thousands of dollars in property taxes. Enacted in 2021, this landmark legislation reshaped how property tax assessments work, especially for seniors, disabled individuals, wildfire victims, and families inheriting property. Here’s what you need to know.

Prop 19 in a Nutshell

Officially known as the Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, Proposition 19 introduced two major reforms:

1. It expanded property tax portability for certain homeowners.

2. It limited inherited property tax exemptions.

Let’s break each one down.

Tax Benefits for Seniors, Disabled Individuals, and Wildfire Victims

Effective April 1, 2021, eligible homeowners can transfer the taxable value of their existing home to a new home, potentially saving thousands per year in property taxes.

To qualify, you must be:

• 55 years or older, or

• Severely disabled, or

• A victim of a wildfire or natural disaster

And the rules are generous:

• You can buy any replacement home in California, regardless of county.

• Your replacement home can be of equal or greater value (though greater-value homes are adjusted upward).

• You have two years from the sale of your original home to complete the move.

• You can use this benefit up to three times—or unlimited times if your home was destroyed by disasterUnderstanding Propositi….

Major Changes to Inherited Property Transfers

Effective February 16, 2021, Proposition 19 changed how property tax assessments work when real estate is passed from parent to child or grandparent to grandchild.

Before Prop 19, heirs could inherit property—often rental or vacation homes—without a reassessment, even if they didn’t live there.

Now, under the new rules:

• Only a primary residence or farm qualifies for a tax assessment transfer.

• The heir must use the property as their primary residence.

• A Homeowners’ Exemption must be filed within one year of the transfer.

• If the property’s market value is more than $1 million above the parent’s taxable value, a partial reassessment will occurUnderstanding Propositi….

This means families who inherit highly appreciated homes may now face significantly higher property taxes—unless the new owner lives in the home as a primary residence.

Why This Matters to You

Whether you're a long-time homeowner looking to downsize, a wildfire survivor trying to rebuild, or a parent hoping to leave your home to your children, Proposition 19 has serious financial implications. Understanding your rights—and timelines—can help you make smarter decisions about your property.

Take Action

• Thinking of moving? If you’re 55+, disabled, or a disaster victim, talk to your real estate advisor about how Prop 19 could help you keep your low property tax base.

• Inherited property? Consult a tax advisor quickly. The deadline to file the Homeowners' Exemption is just one year from the transfer date.

• Need help navigating Prop 19? Visit www.boe.ca.gov/prop19 or contact your local assessor's office for personalized guidance.

At the heart of Proposition 19 is a mission to support California’s most vulnerable residents—seniors, disaster survivors, and families—while reshaping how property wealth is transferred across generations. Make sure you’re equipped with the facts so you can make the most of your home’s value.