Some of my favorite clients are families who bought in San Jose in the 1980s and 90s. They would love a single-story home or to be closer to grandchildren, but one fear keeps them from moving: “My property tax will triple.” Since 2021, Proposition 19 gives many of them a way out.
What Prop 19 allows
If you are 55 or older (or severely disabled, or a wildfire/disaster victim), you can sell your primary home and transfer your existing property tax base to a replacement primary home anywhere in California — up to three times in your life.
The key rules, simply
- Buy the replacement home within two years before or after selling the original.
- If the new home costs equal or less, your old assessed value moves over as-is.
- If the new home costs more, the difference is added to your old assessed value. Example: old base $300,000, sell for $1,600,000, buy for $1,900,000 → new base is roughly $300,000 + $300,000 = $600,000. Still far below a $1.9M assessment.
- Both homes must be your primary residence, and you must file the claim with the county assessor.
What changed for inherited homes
Prop 19 also tightened the rules for passing a home to children. The low tax base now transfers only if a child moves in as their primary residence, and only up to a value limit. Families who planned to leave a rental property to the kids should review that plan with a tax professional.
How I use this with sellers
Before we list, I sit down with the family and map out: current assessed value, realistic sale price, target purchase price, and the two-year window. Then I bring in a CPA or estate attorney for the details — I am a realtor, not a tax advisor, and this is worth getting exactly right.
Thinking about downsizing or moving closer to family? Let's talk. The first conversation is free and there is no pressure.
Tóm tắt tiếng Việt
Nhiều cô chú mua nhà ở San Jose từ những năm 80–90 không dám dọn vì sợ thuế nhà tăng gấp ba. Prop 19 cho phép người từ 55 tuổi trở lên bán nhà và mang mức thuế cũ sang nhà mới ở bất cứ đâu trong California, tối đa 3 lần.
- Mua nhà mới trong vòng 2 năm trước hoặc sau khi bán.
- Nhà mới rẻ hơn hoặc bằng: giữ nguyên mức thuế cũ.
- Nhà mới mắc hơn: chỉ cộng thêm phần chênh lệch.
- Cả hai phải là nhà ở chính, và phải nộp đơn với County Assessor.
Luật để lại nhà cho con cũng đã thay đổi, nên hỏi CPA. Ken sẽ giúp anh chị tính trước các con số rồi mới quyết định. Liên lạc Ken.
