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:
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?
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:
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:
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!
Prop 19 Calculator
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