Home Transitions After 55 and Prop. 19
from Martin Kojnok, neighbor and Realtor® in Maxwell Park
For California homeowners over the age of 55, especially those who have owned their homes for decades, the idea of selling or transitioning to a new living situation brings up a unique set of considerations. Beyond the emotional aspects of leaving a long-time home, there are important legal and financial factors to weigh—particularly when it comes to property taxes.
One law that plays a significant role in this process is California Proposition 19, which was passed by voters in 2020 and took effect in 2021. It replaced previous property tax transfer rules and introduced new opportunities for older homeowners to preserve their low property tax base when moving.
Here are some key points about Prop 19 that homeowners should be aware of:
Tax Base Transfer for Older Homeowners. Under Prop 19, homeowners aged 55 or older can transfer the taxable value of their current home to a replacement primary residence anywhere in the state. This can offer substantial property tax savings, especially for those who have lived in their homes for many years and have a low assessed value.
Flexibility in New Home Price. You can transfer your current tax base:
If the new home is of equal or lesser value, the tax base remains the same.
If the new home is of greater value, the difference in price is added to the transferred tax base, meaning your new taxes will still be lower than if you purchased the new home without the benefit.
Expanded Location Options. Unlike previous laws that limited transfers to the same county or a few participating counties, Prop 19 allows you to move anywhere within California and still retain your tax benefits.
Multiple Uses Allowed. Eligible homeowners can take advantage of the tax base transfer benefit up to three times in their lifetime, giving flexibility for future moves as needs change.
Important Timing Requirements. To qualify for the transfer, the replacement property must be purchased or newly constructed within two years of selling the original property. The new home must also be designated as your primary residence.
Other Considerations for 55+ Homeowners
As you think about the future, here are a few additional questions worth asking:
Will your next home meet your needs as you age (e.g., single-story, low maintenance)?
Have you reviewed how a move might affect your estate or inheritance plans?
Are you aware of potential capital gains implications from a home sale?
For many long-time homeowners, Proposition 19 offers a meaningful way to maintain affordability while making a move that better supports their lifestyle, health, or family needs. Understanding the rules—and how they apply to your unique situation—can help you make a confident and informed decision.
If you're beginning to think about it and would like to discuss your later-life home options, please feel free to contact me. I’ll be glad to talk about how Proposition 19 fits into your broader goals and provide the guidance and resources to achieve them.
Until next time, dwell well, my friends,
Martin Kojnok
CORCORAN ICON PROPERTIES
MBA | REALTOR® | SRES® | 2024 - Top Producer
DRE 01941661
martin@martinkojnok.com m: 510.593.3370 www.martinkojnok.com
