Selling at 55 or older? You may be able to keep your low property tax base.
Tax base is the value your property tax is figured on. Prop 19 can carry yours to your next California home. The next home does not have to cost less.
Not tax or legal advice. Estimates only. Check with your county assessor.
Check if you may qualify
One question at a time. Nothing is sent.
It helps to have your latest property tax bill, and your expected sale price and next home price.
Who may qualify
You must meet one of these three conditions on the day your old home sells. The home and timing rules also apply.
55 or older
Tested on the day the old home sells. Bring an ID with your birth date.
Severely and permanently disabled
A certificate goes with the claim.
Wildfire or disaster victim
Governor-declared disasters.
An example from the Board of Equalization
This is a worked example, not your numbers.
| Taxable value on the old home's tax bill | $100,000 |
| Old home sells for | $400,000 |
| New home, bought within a year, costs | $600,000 |
| Price limit ($400,000 times 1.05) | $420,000 |
| Amount of the new price above the limit | $180,000 |
| New taxable value ($100,000 plus $180,000) | $280,000 |
The new taxable value is $280,000, not $600,000. Only the amount above the limit is added to the old taxable value.
Estimate my own numbersCommon questions
Do I have to be 55 to qualify?
No. 55 or older is one of three ways. The others: severely and permanently disabled, or a wildfire or governor-declared disaster victim. One is enough, tested on the day the old home sells.
Does the new home have to cost less?
No. Above the limit for your timing, the old taxable value still moves over and the amount above the limit is added to it.
Can I buy first and sell later?
Yes, if the sale happens within 2 years of the purchase. BOE: you pay full-value tax on the new home from purchase until the old one sells, with no refund for that period.
How many times can I do this?
Up to 3 times in your life, even if you used the older Prop 60/90 transfer before.
Learn more
- The six rulesWhat the law asks of the old home, the new home and the timing
- Buy first or sell first?Both work. The order changes the price limit
- Four myths, answeredWhat people often get wrong
- What does not qualifyRentals, second homes and more
- Inherited a family home?A separate rule with a one-year deadline
- How to file the claimNobody files it for you
- Plain-English guidesSix short guides
Selling and buying your next home? Talk to Zarko.
Zarko can walk through the sale and the purchase together. He can also point you to a CPA for the tax questions.
Call (831) 246-7773Zarko Maletin, Insider Realty · DRE #02440138 (CA) · [email protected]