Prop 19 Calculator

Proposition 19 is a Constitutional amendment passed by California voters in November 2020. Its main purpose was to make changes to property tax laws in California. Homeowners who are over 55 years old, disabled, or victims of natural disasters can use Prop 19 to transfer their existing property taxes to a new replacement home up to three times. They can move to a different or more expensive home without paying higher property taxes.

With Prop 19, you can:

Keep the original tax base of your home when moving to a home of equal or lesser value anywhere in California.
When you purchase a more expensive home, you can use Prop 19 to have a lower than typical property tax that is adjusted based on the taxes on your old home.
Purchase a more accessible home (such as a single level), downsize, move closer to relatives or medical care, or relocate to any county you choose.

Requirements for using Prop 19:

Can I move anywhere in California?

Yes, with Prop 19 you can stay within your existing county or move anywhere in the state. This is a change from the old Prop 60/90 that limited transfers to certain counties.

Is there a limit to how much my new home can cost?

No, under Prop 19 there is no restriction on the size or price of the replacement property. Both of these restrictions were eliminated by California voters with Prop 19.

What could my tax savings be?

If your new property is the same or less (than the sale price) of your existing home, then your old home's property tax transfers to the new property, regardless of size or location in California.
If your new property is more than the sale price of your old home, then the new property's tax is an adjusted (and lower) amount than would originally have been paid without Prop 19.

What if I pass my home to my children or grandchildren?

Under Prop 19, a principal residence may be passed on to children or grandchildren that continue to use the home as a principal residence. It also requires a partial increase in taxable value if the difference between the taxable value and actual value is too large.

To calculate Prop 19 tax savings for a new home purchase, follow these steps:

1. Determine the full cash (market) value of the original home (let's call this A)
2. Determine the factored base year (tax) value of the original home (let's call this B)
3. Determine the full cash (purchase) value of the replacement home (let's call this C)
4. Calculate 105% of A (A x 105% = D)
5. If C is less than or equal to D, the base year value of the original home can be transferred to the replacement home without any value adjustment
6. If C is greater than D, subtract D from C to get the difference (C - D = E)
7. Add E to B to get the new taxable value of the replacement home (B + E = F)
8. To find the new tax rate multiply F by 1.2% (or the tax rate for the county where the home is)

If the new home purchase is less than the sale of the old home (transfer old property tax):

The original home has a full cash value of $2,500,000 and a factored base year value of $900,000. The replacement home has a full cash value of $1,500,000. To calculate the new taxable value of the replacement home:

If your new home purchase is more than the sale price of your old home

The original home has a full cash value of $1,500,000 and a factored base year value of $900,000. The replacement home has a full cash value of $1,800,000. To calculate the new taxable value of the replacement home:

1. A = $1,500,000
2. B = $900,000
3. C = $1,800,000
4. D = $1,575,000
5. Since C is greater than D, we move on to step 6
6. E = $1,800,000 - $1,575,000 = $225,000
7. F = $900,000 + $225,000 = $1,125,000
8. G = $1,125,000 x 1.2% = $13,500

Therefore, the new taxable value of the replacement home is $1,125,000 and the property taxes are ~$13,500

If you have questions after reading this, feel free to reach out to our team to chat!