Are you 55 or older and looking to downsize? Prop 19 allows you to transfer your property tax base to a new home, saving you thousands of dollars.
“We Can Help You Navigate Prop 19 and Maximize Your Savings”
Prop 19: Tax Relief for Seniors and Their Families
Transfer Your Property Tax Base: If you’re eligible, Prop 19 allows you to transfer your property tax base to a new home anywhere in California. This means you’ll pay lower property taxes on your new home, saving you thousands of dollars.
What is a property tax base?
Your property tax base is the assessed value of your home used to calculate your property taxes. Generally, it’s the value of your home when you bought it or when it was last reassessed.
How does Prop 19 allow you to transfer your property tax base?
If you qualify, Prop 19 allows you to transfer the base year value of your original primary residence to a new primary residence anywhere in California. This means that the assessed value of your new home will be based on the original purchase price of your old home (or the last time it was reassessed), rather than the current market value.
Why does this save you money?
Property taxes are calculated based on the assessed value of a home. If you can keep the assessed value lower, your property taxes will be lower. By transferring your property tax base, you’re essentially freezing the assessed value of your new home at a lower point.
Example:
Let’s say you bought your old home for $500,000 in 2010. If you sell it in 2024 and the current market value is $1,000,000, you’ll likely face significant property tax increases on a new home purchased at the current market value.
However, with Prop 19, you can transfer the $500,000 base year value to your new home.
This means your property taxes will be calculated based on the $500,000 value, rather than the higher market value.
Benefits for Your Family:
Prop 19 can also benefit your family members:
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Inheritance Tax: If you pass away, your heirs may be eligible for a property tax exemption on the inherited property.
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Transfer of Ownership: If you transfer ownership of your home to a family member, they may be able to continue enjoying the benefits of Prop 19.
No Income Restrictions: There are no income restrictions for Prop 19, making it accessible to seniors of all financial backgrounds.
Help Downsize and Enjoy Retirement: Prop 19 can make it easier for seniors to downsize to a smaller, more manageable home and enjoy their retirement years without the burden of high property taxes.
By transferring your property tax base under Prop 19, you can potentially save thousands of dollars on property taxes and make your new home more affordable.
