Unlocking New Possibilities: How Proposition 19 Empowers Older Homeowners in California

For many longtime California homeowners, their homes have not only served as places of comfort and memory—but also grown significantly in value. Now, thanks to Proposition 19, those over the age of 55 have a unique opportunity to take that hard-earned equity and make a move that better fits their current lifestyle—without being penalized by skyrocketing property taxes.

What is Prop 19?

Proposition 19, passed in November 2020 and enacted in 2021, allows eligible homeowners—those who are 55 or older, severely disabled, or victims of a natural disaster—to transfer their current property tax base to a new home anywhere in the state of California. This change replaced the previous, more restrictive rules under Props 60 and 90, which limited transfers to certain counties.

Key Benefits for Older Homeowners

1. Move Without the Property Tax Hit
Under Prop 19, eligible homeowners can move to a more suitable home—whether it’s downsizing, relocating closer to family, or moving to a single-level layout—while keeping their lower tax base. This can result in savings of thousands of dollars per year.

2. Greater Flexibility in Location and Price
Previously, transferring your tax base was limited to moves within the same county or select counties that had inter-county agreements. Prop 19 removes those limits—now you can move anywhere in California. Plus, you can purchase a more expensive home and still receive a partial tax base transfer.

3. Use It More Than Once
Prop 19 allows eligible homeowners to take advantage of this benefit up to three times (and unlimited times for those whose homes were destroyed by wildfire or natural disaster). That means flexibility not just now, but in the future as well.

4. More Control Over Your Equity
For many, selling a longtime residence unlocks hundreds of thousands of dollars—or more—in equity. With lower property taxes on your replacement home, you can preserve more of your monthly budget for the things that matter most, whether that’s travel, healthcare, or helping family members.

A Real-World Example

Imagine you purchased your home decades ago and are currently paying $3,000 a year in property taxes. If you sell that home and purchase a new one for $1 million, your new property taxes could jump to $12,000 or more per year under normal rules. But under Prop 19, you can transfer your $3,000 tax base to the new home (with a slight adjustment if the new home is more expensive), avoiding a significant increase.

Who Qualifies?

You may qualify for Prop 19 benefits if you meet one of the following:

• Age 55 or older

• Severely disabled

• Victim of a declared natural disaster

The replacement home must be purchased within two years of selling the original residence.

Considering a Move? Let’s Talk.

As a local Realtor who understands the intricacies of Prop 19, I can help you evaluate whether it makes financial and lifestyle sense for you to make a move. If you’ve been thinking about downsizing, relocating, or just simplifying life, this could be your perfect opportunity.

Let’s schedule a no-obligation consultation to talk about your options—and how to make the most of Prop 19.