Can You Keep Your Low Property Tax When You Move After 55 in California?

Maybe. California's Proposition 19 lets homeowners who are 55 or older sell their primary home and move their property tax base to a new primary home anywhere in California. Homeowners who are severely disabled, and people who lost a home to a wildfire or natural disaster, can use it too. It is not automatic, and the details matter, so you confirm them with the county assessor before you decide anything.

Tanja Odzak is a Top East Bay Realtor with eXp Realty, helping buyers and sellers in Oakland, Berkeley, Walnut Creek, Lafayette and across the East Bay. I am a Realtor, not a tax advisor, so I always ask clients to confirm the details with the assessor and their CPA. What I can do is help you map out the move. This guide explains the rule in plain words so you know what to ask.

In California, your property tax is based on a number called the base value, not on its current market value. Someone who bought a home many years ago may be paying a fraction of what a newer neighbor pays.

That is a big reason people feel stuck. They would love to downsize, or move closer to loved ones, but they do not want to give up the low tax bill. Prop 19, which California voters passed in 2020, was written with this in mind.

Here is the rule in short, using the same steps I share in my video.

1. You are 55 or older. You can sell your primary home and transfer your property tax base to a new primary home.
2. The new home can be anywhere in California. Not just the same county. Anywhere in the state.
3. You have two years. You can buy the new home before or after you sell, as long as it is within two years of the sale.
4. You can use it up to three times. Homeowners 55 and older, and those who are severely disabled, can transfer their base up to three times.
5. You file a claim. You file with the county assessor. It does not happen on its own.

The new home must be your primary residence, and so must the one you are selling. The assessor decides whether you qualify, so call them before you list.

If the new home is worth about the same as the one you sold, or less, your current tax base can move with you. If it costs more, the difference gets added on top of your base.

So your tax may go up some, but often far less than starting over at today's prices. The comparison also gets a small adjustment depending on whether you buy before or after you sell, and the assessor does that math. Ask for it in writing for your specific case.

Here's a common situation, with made-up numbers to show the idea. Say a homeowner's tax base on their long-held house is $400,000, and they sell it for $1,500,000. If they buy a new home for $1,200,000, which is less than they sold for, their base can move with them. If they buy one for $1,800,000, the extra amount is added to the base. I am simplifying here. The real calculation has the timing adjustment, so please do not use my example as a tax estimate.

Yes. Homeowners who are severely disabled can also use it. So can people who lost a home to a wildfire or other natural disaster. The rules for each group differ, so ask the assessor which applies to you. The State Board of Equalization has a page for each group.

Prop 19 is only one part of the move. A plan that works looks at the whole picture. As a Top East Bay Realtor with eXp Realty, helping buyers and sellers in San Francisco, Alameda, Piedmont, San Leandro, Pleasant Hill and across the East Bay, I follow this order:

1. Confirm your eligibility with the assessor. Ask about your age, your homes, and the claim form.
2. Talk to your CPA. Prop 19 is a property tax rule. Selling also has income tax effects.
3. Know your home's value. I run a home valuation for your specific street, so you know what the sale could look like.
4. Pick the next home or the area. You can look at homes before you list, which gives you the two-year window.
5. Build a net sheet. A one-page view of the sale price, the costs, and what you would take home.
6. Plan the move itself. The timeline for packing, showing, and closing is easier when it is planned.
7. File your claim. Do it with the county assessor, on time.

Prop 19 helps with the tax bill after you move. The sale itself has costs that depend on the city. Transfer taxes are one of the biggest. Here is how they work in each area.

• Oakland: Two transfer taxes apply. Alameda County's is $1.10 per $1,000 of the price, and Oakland charges its own, in tiers on the whole price. The county tax is customarily paid by the seller, and the city tax is customarily split between seller and buyer. If you are downsizing in Oakland, see my page on downsizing in Oakland.
• Berkeley: Berkeley has its own city transfer tax on top of the county's. Berkeley also offers a rebate for some voluntary seismic upgrades, so ask before you finalize anything.
• San Francisco: One transfer tax applies, collected by the City and County, in tiers by price and charged on the whole price.
• Alameda: The city charges its own transfer tax on top of the county's.
• Piedmont: Piedmont has its own city transfer tax as well. Voters decide Measure GG on November 3, and it could change the rate, so ask me for the current rate when you are ready to plan.
• San Leandro: San Leandro's own rate is $11.00 per $1,000, on top of Alameda County's $1.10 per $1,000.
• Lafayette: Lafayette has no extra city transfer tax. The sale carries Contra Costa County's $1.10 per $1,000, customarily paid by the seller. Many Lafayette homes sit on large lots, and I wrote about downsizing from one on my page for downsizing in Lafayette.
• Walnut Creek: The same: $1.10 per $1,000 in total, with no extra city tax. See downsizing in Walnut Creek.
• Pleasant Hill: The same as Lafayette and Walnut Creek, $1.10 per $1,000 in total with no extra city tax.

Prop 19 works the same way no matter which of these cities you sell from, and you can move your base to any of them, or anywhere else in California. These numbers are customs and rates, and your net sheet shows how they land on your sale.

Assuming it happens on its own. You have to file a claim with the county assessor.

Missing the timing. The new home must be purchased or built within two years of the sale. Mark the dates early.

Forgetting the new home's price. If the new home costs more, part of the savings goes away. Run the numbers before you make an offer.

Treating it as the whole plan. A low tax bill does not replace a good move. The home, the location, and the costs matter too.

Using it more than the rule allows. There is a limit on how many times you can transfer your base. Ask the assessor how many transfers you have left.

Start with a call to your county assessor, then a conversation with me. Tanja Odzak is a Top East Bay Realtor with eXp Realty, helping buyers and sellers in San Francisco, Alameda, Piedmont, San Leandro, Pleasant Hill and across the East Bay. I will help you map out the move, from the value of your home to the timeline, so you know what is possible. You can read more about downsizing, see how I run a home valuation, learn about moving to the East Bay, see my selling process, or tell me about your next move.

This article describes my general process and is not legal, tax, or financial advice. Talk with the county assessor, a tax professional, or an attorney about your own situation.