California
Proposition 19
Proposition 19 sets California's property tax rules for passing a home to a child or grandchild. It limits the tax break to a family home the heir uses as a home.
Proposition 19 is a California law that changed how property taxes work when a home passes within a family. The California Board of Equalization (BOE) says a principal residence or family farm can move from parent to child, or grandparent to grandchild when the grandchild's parents are deceased, without a property tax increase up to a limit. The child must keep it as their own principal residence or family farm.
The limit. For transfers from February 16, 2025 through February 15, 2027, the BOE caps the excluded amount at the home's factored base year value plus $1,044,586. The transferee must apply for the homeowners' or disabled veterans' exemption within one year.
A round example. For example, a home has a taxable value of $300,000 and is worth $1,500,000. Using the older $1,000,000 limit, $1,300,000 is excluded and the other $200,000 is added to the taxable value. These numbers are for illustration only.
Why it matters to your plan. A rental home does not qualify. Plan early with your attorney. See our guide on Prop 19.
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