How Much Can You Save with Proposition 19 When Downsizing?
Property tax savings with Proposition 19 in Los Angeles County typically range from $4,000 to $12,000+ annually for qualifying homeowners. Long-term owners who purchased before 1990 see the highest savings due to decades of Proposition 13 protection. Your exact savings depend on three numbers: (1) your current protected tax base, (2) your original home's sale price, and (3) your replacement home's purchase price.
⚠️ Important Disclaimer: This guide provides general educational information about Proposition 19 based on California State Board of Equalization regulations and LA County Assessor guidance. Tax situations vary significantly based on individual circumstances, specific Tax Rate Areas, and property details. This is not legal or tax advice. Always consult with a qualified California CPA and/or real estate attorney before making any financial decisions. Last Updated: October 2025 | Sources: California BOE, LA County Assessor
Quick Reference: Prop 19 Savings by Scenario
| Your Situation | Expected Savings | Action Steps |
|---|---|---|
| 🏠 Purchased 1980s-1990s | $6,000-$12,000/year | ✅ EXCELLENT CANDIDATE Get tax base from bill Research target homes Calculate exact savings ↓ |
| 🏠 Purchased 2000s-2010s | $4,000-$7,000/year | ✅ STRONG CANDIDATE Verify appreciation Compare neighborhoods Check eligibility |
| 🏠 Purchased 2015-2025 | $2,000-$4,000/year | ⚠️ MODERATE SAVINGS Calculate carefully Consider long-term benefit Contact for analysis |
| 🏠 Used Prop 19 3× Already | $0 | ❌ BENEFIT EXHAUSTED Cannot use again Explore alternatives Discuss options |
💡 Pro Tip: The longer you've owned your home, the higher your savings. Most LA County homeowners who purchased before 2000 save $5,000+ annually.
Is Proposition 19 Right for Your Move? Visual Decision Flow
START: Considering a Move?
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Are you 55+ or disabled?
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YES NO
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Have you owned 10+ years? You don't qualify
↓ [See eligibility guide]
YES
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Is your tax base < 50% of value?
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YES
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┌────────┴────────┐
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DOWNSIZING TRADING UP
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✅ MAXIMUM ✅ STRONG
SAVINGS SAVINGS
$5K-$12K/yr $3K-$8K/yr
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Calculate exact savings below
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Contact Justin: 323.684.4421
Quick Savings Estimator:
Your Home Value: $________
Your Tax Base: $________
Protection Gap: $________ (subtract)
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Annual Savings = Protection Gap × 0.011
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Your Estimated Savings: $________/year
Not sure if you qualify? Learn who qualifies for Proposition 19 →
Understanding Your Potential Savings: The Formula
Before diving into calculations, make sure you understand who qualifies for Proposition 19 and have all required documentation ready.
Proposition 19 savings come from protecting your low Proposition 13 tax base when you move. Here's how it works in simple terms.
The Three Numbers You Need
Number 1: Your Current Tax Base
This appears on your LA County property tax bill as "Net Taxable Value" or "Assessed Value." For homeowners who purchased decades ago, this number is dramatically lower than current market value.
Example: Purchased in 1988 for $235,000 → Current tax base approximately $430,000 (after 37 years of 2% annual increases)
Where to find it: Your annual property tax bill, or visit assessor.lacounty.gov and search by address.
Number 2: Your Home's Sale Price
The full cash value you'll receive when selling your current home in today's market. Current Pasadena median home prices range from $1.2M to $1.3M, with condos averaging around $800K.
Example: Pasadena home selling for $1,250,000
Number 3: Your Replacement Home's Purchase Price
The market price of the home you're buying. Consider whether you're downsizing strategically or moving laterally.
Example: Downsizing to $850,000 condo
The Savings Formula
IF your replacement home costs equal or less than your sale price:
Your new tax base = Your old tax base (unchanged)IF your replacement home costs more than your sale price:
Your new tax base = Old tax base + (New price - Old price)
Typical LA County Savings by Purchase Era
Based on LA County's property appreciation patterns and average property tax rates of 1.0-1.2%, here are realistic savings scenarios:
| Original Purchase Era | Typical Tax Base Range | Downsize Home Value | Estimated Annual Savings |
|---|---|---|---|
| 1980s-1990s | $250K-$550K | $900K-$1.1M | $5,000-$9,000 |
| 2000s-2010s | $550K-$850K | $1.2M-$1.5M | $4,000-$7,500 |
Calculations use 1.1% average LA County effective tax rate. Your actual rate varies by Tax Rate Area (TRA) from 1.0% to 1.2%. Check your specific TRA at auditor.lacounty.gov/tax-rate-area-lookup.
Important: These are estimates for illustration purposes only. Individual savings depend on your specific property values, exact tax base, and local Tax Rate Area.
Savings vs. Risks: What You Gain and What to Consider
Understanding both the benefits and potential considerations helps you make informed decisions:
| Benefits of Using Prop 19 | Considerations to Evaluate |
|---|---|
| ✅ Save $4,000-$12,000+ annually on property taxes | ⚠️ One-time filing process required (Form BOE-19-B) |
| ✅ Locked-in savings grow over time (2% max increase) | ⚠️ Limited to 3 uses in lifetime |
| ✅ Can move anywhere in California | ⚠️ Must file within 3 years of purchase |
| ✅ Can trade up to more expensive home | ⚠️ If you trade up, partial savings only |
| ✅ No income or asset restrictions | ⚠️ Must be primary residence (both properties) |
Bottom Line: For most qualifying LA County homeowners, the benefits far outweigh the considerations. The key is understanding your specific numbers and timing your move strategically.
Real-World Example: Pasadena Downsize
📋 Case Study Disclosure: This example is based on typical market transactions in Pasadena using verified median home prices of $1.2-1.3M and condo prices around $800K. While the specific homeowner is hypothetical, all numbers reflect actual LA County market conditions and Prop 13 calculation methods. For real client case studies with verified savings, contact Justin directly.
The Scenario
Homeowner Profile:
- Age: 67 (qualifies for Prop 19)
- Original Purchase: 1988 Pasadena home for $235,000
- Years Owned: 37 years
- Current Tax Base: $430,000 (verified using Prop 13 formula: $235,000 × 1.02^37 years)
- Current Market Value: $1,250,000 (within typical range for Pasadena)
- Target Property: $850,000 Pasadena condo (typical condo price range)
- Transaction Type: Downsize to lesser value
Why This Homeowner Qualifies:
- ✅ Age 55+ requirement met
- ✅ Both properties are primary residence
- ✅ Within 2-year transaction window
- ✅ First use of Prop 19 benefit
- ✅ Replacement home less than original sale price
The Calculation (Step-by-Step)
Step 1: Compare Home Values
- Original home sale price: $1,250,000
- Replacement home purchase: $850,000
- Result: Replacement is $400,000 LESS → Full tax base transfer applies
Step 2: Determine New Tax Base Because the replacement home costs less than the original, the entire tax base of $430,000 transfers unchanged under Proposition 19 "equal or lesser value" rules.
Step 3: Calculate Annual Property Tax
| Scenario | Tax Base | Tax Rate | Annual Tax Bill |
|---|---|---|---|
| With Proposition 19 | $430,000 | 1.1% | $4,730 |
| Without Proposition 19 | $850,000 | 1.1% | $9,350 |
| Annual Savings | — | — | $4,620 |
Step 4: Project Long-Term Savings
Assuming 2% annual increases (Prop 13 maximum):
| Timeframe | Cumulative Savings |
|---|---|
| Year 1 | $4,620 |
| Year 5 | $24,100+ |
| Year 10 | $51,300+ |
| Year 20 | $109,200+ |
The Financial Impact Beyond Taxes
Additional Benefits:
- Released Equity: $400,000 cash after condo purchase
- Reduced Maintenance: ~$6,000/year (no yard, HOA covers exterior)
- Reduced Utilities: ~$2,400/year (smaller space, better insulation)
- HOA Includes: Insurance, maintenance, landscaping, water
Net Financial Improvement Year 1:
- Property tax savings: $4,620
- Maintenance savings: $6,000
- Utility savings: $2,400
- Total annual benefit: $13,020+
- Plus $400,000 in accessible equity
Sources: Calculation methodology verified through California Board of Equalization Proposition 19 guidelines. Market values based on current Pasadena real estate data. Tax rates per LA County property tax structure.
💡 Want to See Real Client Results?
This hypothetical example demonstrates the mechanics, but nothing beats seeing actual savings from real transactions. Contact Justin at 323.684.4421 to discuss:
- Anonymized case studies from actual LA County Prop 19 clients
- Your specific property's potential savings calculation
- Recent comparable transactions in your target neighborhoods
Why LA County Homeowners Save More
Los Angeles County homeowners often see higher dollar savings compared to other California counties due to two factors:
Factor 1: Higher Property Appreciation
LA County has experienced significant property appreciation over decades, creating a large gap between protected tax bases and current values. LA County property values increased 4.75% in 2024 alone, the highest annual growth in over a decade, and long-term appreciation since the 1980s has been even more dramatic.
Example Protection Gap:
- 1985 Pasadena purchase: $165,000
- 2025 current value: $1,300,000
- Protection gap: $1,135,000
- Annual tax on that gap: $12,485 (at 1.1%)
The larger your protection gap, the more you save by keeping your old tax base.
Factor 2: Tax Rate Variations
While California's Proposition 13 sets a 1% baseline property tax rate, LA County's effective rates range from 0.6% to 1.2% depending on your Tax Rate Area (TRA), which includes voter-approved bonds, school assessments, and special district fees.
What this means: Every $100,000 of assessed value you protect through Prop 19 saves you $1,000-$1,200 annually in LA County.
⚠️ Tax Rate Disclaimer: Your specific property tax rate depends on your Tax Rate Area (TRA). Rates vary by neighborhood within LA County. Verify your exact rate at auditor.lacounty.gov/tax-rate-area-lookup.
How to Calculate Your Personal Savings
Follow these steps to estimate your Proposition 19 savings:
Step 1: Find Your Current Tax Base
Check your most recent LA County property tax bill for "Net Taxable Value" or "Assessed Value." Don't have your bill? Visit assessor.lacounty.gov or call (213) 974-3211.
Step 2: Estimate Your Home's Market Value
Get a realistic estimate through:
- Recent comparable sales in your neighborhood
- Online tools (Zillow, Redfin) as starting points
- Formal CMA from a real estate agent
- Contact Justin for accurate Pasadena-area comparables
Step 3: Research Replacement Home Prices
Determine realistic prices for homes you're considering. If you're thinking about whether downsizing makes sense, research specific neighborhoods that match your lifestyle needs:
- Downsizing: Typically 25-40% less than current value
- Lateral move: Similar price point
- Trading up: 10-30% more
Step 4: Apply the Formula
Downsizing or lateral move (replacement ≤ original sale price):
- New tax base = Your current tax base (no change)
- Annual savings = (New home price - Current tax base) × 1.1%
Trading up (replacement > original sale price):
- New tax base = Current tax base + (New price - Old price)
- Annual savings = (New home price - New tax base) × 1.1%
Multiply annual savings × 10 to see your decade of savings potential.
⚠️ Calculation Disclaimer: These formulas provide estimates only. Actual property tax calculations include additional factors specific to your Tax Rate Area. Consult a CPA for precise calculations based on your situation.
Special Timing Benefit: The 105% Rule
Proposition 19 includes a timing benefit that can increase your savings if you're downsizing to a home close in price to your current home.
The Rule:
If you buy your replacement home within 1 year AFTER selling, the replacement can be up to 105% of the original sale price and still qualify as "equal or lesser value" (meaning full tax base transfer).
If you buy in the second year after selling, the threshold increases to 110%.
Example:
- You sell for $1,000,000
- You buy within year 1 for $1,049,000
- Because $1,049,000 < 105% of $1,000,000 ($1,050,000), you get full tax base transfer
- Result: Zero adjustment to your tax base
Source: California State Board of Equalization Proposition 19 fact sheet
This timing rule can mean the difference between full and partial tax base transfer for homes priced within 5-10% of your sale price.
Frequently Asked Questions
Q: I'm only saving $3,000 per year. Is Prop 19 still worth it?
Absolutely. While $3,000 annually may seem modest:
- Over 10 years, that's $33,000+ in savings
- Over 20 years, it's $73,000+
- Without Prop 19, you'd pay that extra amount EVERY year for as long as you own the home
Even modest annual savings compound significantly over time.
Q: Can I save money if I only purchased my home 10 years ago?
Yes. Even relatively recent purchasers benefit from Prop 19 in LA's appreciating market. Pasadena home prices increased notably over the past decade, so a 2015 purchase has still benefited from significant appreciation, potentially saving $2,000-$4,000 annually.
Q: If I trade up to a more expensive home, am I really saving money?
Yes. You protect your original low tax base and only pay taxes on the difference. In many trade-up scenarios, homeowners still save 35-45% compared to full reassessment. The key is that you're not penalized for the entire appreciation of your old home.
Q: How do property tax savings compare to condo HOA fees?
Typical condo HOA fees in Pasadena range from $400-$600/month ($4,800-$7,200/year). Typical Prop 19 savings are $4,000-$10,000/year. You usually come out ahead, and the HOA covers maintenance, landscaping, and insurance you previously paid separately.
Q: What if home values drop after I move?
Once your Prop 19 tax base is established, it's locked in and protected by Proposition 13 with a maximum 2% annual increase. Your tax base won't increase beyond this cap regardless of future market fluctuations. Your Prop 19 savings are permanent and protected.
Q: I've heard stories about people losing their Prop 19 benefits. What are the common mistakes?
The most common filing errors include:
- Missing the 3-year filing deadline after purchase
- Not establishing both homes as primary residence
- Incorrect form completion (use Form BOE-19-B)
- Failing to notify the Assessor when selling original home
Work with a real estate professional familiar with Prop 19 to avoid these pitfalls.
Ready to Calculate Your Exact Savings?
Understanding your potential Proposition 19 savings is the first step. The next step is creating a real plan—finding the right property, timing your transactions optimally, and ensuring you maximize every dollar of savings.
As a Pasadena-based real estate expert with 13+ years of experience, I specialize in helping LA County seniors:
✅ Calculate exact Prop 19 savings based on your current tax base and target homes
✅ Find properties that maximize your financial benefit (downsizing opportunities, 55+ communities, accessible single-story homes)
✅ Time transactions strategically to leverage the 105% rule when beneficial
✅ Navigate the LA County market with local expertise in Pasadena, San Marino, La Cañada, South Pasadena, Sierra Madre, and surrounding areas
✅ Coordinate filing to ensure you don't lose benefits due to paperwork errors
I've helped dozens of LA County seniors successfully navigate Prop 19 and save hundreds of thousands in property taxes. Let's create your personal savings plan.
Moving outside LA County? I work with Prop 19 specialists throughout California and can connect you with trusted experts anywhere in the state.
Contact Justin Borges:
📞 323.684.4421
✉️ Justin@theborgesrealestateteam.com
🌐 lametrohomefinder.com
Free consultation. We'll calculate your exact Prop 19 savings and discuss your downsizing options with zero obligation.
About Justin Borges
Justin Borges is a Pasadena-based real estate expert with 13+ years of experience helping Los Angeles families navigate housing transitions. With over $200M in career sales and a 106% average list-to-sale ratio, Justin specializes in educating homeowners about Proposition 19 and downsizing strategies tailored to LA County's unique market. [Learn more about Justin →]
Important Legal and Tax Disclaimers
Legal Disclaimer: This article provides general educational information about Proposition 19 property tax savings and is not legal or tax advice. Property tax calculations presented are examples for illustration purposes and actual savings vary based on individual circumstances, specific property values, exact tax rates, and other factors. Always consult with a qualified tax professional, CPA, and/or real estate attorney for advice specific to your circumstances before making any financial decisions.
Market Disclaimer: Real estate market conditions and property values change frequently. Tax rates vary by Tax Rate Area (TRA) within Los Angeles County. Examples use a 1.1% effective rate as a conservative estimate; your actual rate may differ from 1.0% to 1.2% depending on location. Market data sourced from Redfin and Rocket Homes for Pasadena area. For precise tax calculations specific to your property and current market analysis, contact Justin Borges directly or consult with a California-licensed CPA.
Accuracy Note: While every effort has been made to ensure accuracy based on California State Board of Equalization guidance and LA County Assessor information, property tax law is complex and subject to interpretation. Official guidance from the Board of Equalization and your County Assessor supersedes any information presented here.
Sources & Additional Resources:
- California State Board of Equalization: boe.ca.gov/prop19
- LA County Assessor: assessor.lacounty.gov/prop19
- LA County Tax Rate Lookup: auditor.lacounty.gov/tax-rate-area-lookup
- Prop 19 Form BOE-19-B: Available through your County Assessor
