Proposition 19 (approved November 2020) changed two things. Homeowners 55 or older or severely disabled can move their Prop 13 taxable value to a replacement home anywhere in California up to three times, and disaster victims once per disaster. And a parent's home keeps its value for a child, up to a cap, only if the child moves in.
Rules on this page come from the State Board of Equalization's Proposition 19 page and Publication 29 and from the Los Angeles County Assessor, all checked on October 3, 2026. This is general information, not tax or legal advice; the BOE recommends an attorney for advice on your situation.
How Prop 13 sets your property tax
Since 1978, Proposition 13 has limited the general property tax rate to 1% of assessed value, plus rates for voter-approved debt. A property is reassessed to market value only when it changes ownership or new construction is completed; that value becomes its base year value. After that, its assessed value can rise by no more than 2% a year.
That is why long-time owners tend to have much lower tax bills than recent buyers, whose assessed values are close to market value. When you sell, the buyer starts a new base year value at the purchase price. Prop 19 lets some sellers carry their old value to their next home.
Prop 19 for sellers 55+, severely disabled owners and disaster victims
If you sell your principal residence and buy or build a replacement principal residence within two years, you can transfer your factored base year value to it when, on the date you sell, you are at least 55, severely and permanently disabled, or the home was damaged by a wildfire or a natural disaster declared by the Governor. You need to meet only one of these. The replacement can be anywhere in California. Owners 55 or older or severely disabled can do this up to three times; a disaster transfer is allowed once per disaster and does not count toward that limit.
| You buy or build the replacement | It counts as equal or lesser value up to |
|---|---|
| Before selling the original home | 100% of the original home's market value |
| Within the first year after the sale | 105% of the original home's market value |
| Within the second year after the sale | 110% of the original home's market value |
If the replacement is worth more than that, the base year value still transfers, but the difference is added to it. In the BOE's example, the original home is worth $400,000 with a factored base year value of $100,000, and the replacement costs $600,000 in the first year after the sale. The limit is $420,000 (105%), so $180,000 is added and the new taxable value is $280,000.
File the claim with the assessor of the county where the replacement home is, after both transactions are complete and you live in the replacement home. It is not done through escrow. The deadline is three years from buying the replacement or finishing its construction: form BOE-19-B (age 55 or older), BOE-19-D with BOE-19-DC (severely disabled) or BOE-19-V (wildfire or natural disaster).
Does Prop 13 transfer to heirs? Prop 19 parent-child rules
For transfers on or after February 16, 2021, a family home keeps its taxable value when it passes from parent to child only if it was the parent's principal residence and becomes the child's principal residence. The child must file for the homeowners' exemption (or the disabled veterans' exemption) within one year. A grandparent-to-grandchild transfer qualifies only if the grandchild's parent who is the grandparent's child has died.
The exclusion has a value cap: the factored base year value plus $1 million, adjusted every two years. For transfers from February 16, 2025, through February 15, 2027, the amount is $1,044,586. Value above the cap is added to the taxable value. In the BOE's example, a home with a $300,000 factored base year value and a $1,500,000 market value has a $1,300,000 cap, so $200,000 is added and the new taxable value is $500,000.
Rentals and other property no longer qualify; only family homes and family farms do. At least one child who received the home must keep living in it: once it is no longer that child's principal residence, it is reassessed as of the next lien date.
| Transfer | Form | Deadline |
|---|---|---|
| Parent to child | BOE-19-P | Within 3 years of the transfer or date of death, or before a transfer to a third party, whichever is earlier |
| Grandparent to grandchild | BOE-19-G | Within 3 years of the transfer or date of death, or before a transfer to a third party, whichever is earlier |
| Family home, either case | BOE-266 (homeowners' exemption) or BOE-261-G (disabled veterans' exemption) | Within 1 year of the transfer or date of death |
Can I sell my house to my child for $1?
For property tax, a transfer of the family home between parent and child keeps its taxable value only under Prop 19's conditions: it was the parent's principal residence, it becomes the child's principal residence, and value above the cap is added. A sale below market value can also have federal and state tax consequences, so ask a tax professional before you sign.
When does Prop 13 protection end?
A change in ownership or completed new construction triggers reassessment to market value, and a supplemental tax bill covers the rest of that fiscal year. Some transfers are excluded, such as the Prop 19 family home transfer above. Prop 13 itself is still in effect: Prop 19 changed the transfer rules, not the 1% rate or the 2% cap.
Related guides
Sources
Checked October 3, 2026
Last verified: October 3, 2026. General information only, not tax or legal advice.
Frequently Asked Questions
What is Prop 19 in California?+
A constitutional amendment approved in November 2020. Since April 1, 2021, homeowners 55 or older or severely disabled can move their Prop 13 taxable value to a replacement home anywhere in California up to three times, and wildfire or natural disaster victims once per disaster. Since February 16, 2021, parent-child transfers keep their taxable value only for a family home the child lives in, up to a cap.
How does the California property tax transfer for seniors work?+
If you are at least 55 when you sell your principal residence and you buy or build a replacement within two years, you can transfer your factored base year value to it, up to three times. A more expensive replacement adds the difference over the equal-or-lesser-value limit. File form BOE-19-B with the county assessor.
Does Prop 13 transfer to heirs?+
Only for a family home or family farm. The home must have been the parent's principal residence and become the child's, the child must file for the homeowners' exemption within one year, and value above the factored base year value plus $1,044,586 (for transfers from February 16, 2025) is added.
Does Prop 19 apply to a rental home transferred to my child?+
No. Prop 19 limits the parent-child exclusion to a family home that is the principal residence of both parent and child, or a family farm, so a rental is reassessed.
What forms do I file for a Prop 19 transfer?+
BOE-19-B (age 55 or older), BOE-19-D with BOE-19-DC (severely disabled) or BOE-19-V (wildfire or disaster) for base year value transfers; BOE-19-P or BOE-19-G for parent-child or grandparent-grandchild transfers, plus BOE-266 or BOE-261-G within one year. File with the county assessor.
Is Prop 13 still in effect?+
Yes. The 1% general tax rate and the 2% annual limit on assessed value increases still apply. Prop 19 changed the rules for transferring taxable values.
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