How Does Proposition 19 Work for Downsizing?
Proposition 19 allows California homeowners age 55 and older to transfer their existing property tax base when moving to a new primary residence anywhere in the state. Instead of being reassessed at current market value, you keep your old Prop 13 tax rate (or a slightly adjusted rate if buying a more expensive home), potentially saving thousands of dollars annually. This benefit can be used up to three times in your lifetime and works whether you're downsizing to a less expensive home or trading up to accommodate new needs.
Quick Navigation: Understanding Prop 19
| Section | Key Insight |
|---|---|
| Eligibility | Age 55+, severely disabled, or wildfire victims |
| Portability | Transfer to any California county, up to 3 times |
| Tax Savings | Keep low Prop 13 tax base instead of full reassessment |
| Filing Process | Must file within 3 years of purchasing replacement home |
| Timeline | Two-year window between selling and buying |
The Prop 19 Mechanism: How Your Tax Base Transfers
At its core, Proposition 19 solves a decades-old problem for California seniors: the property tax penalty of moving.
The Old Problem (Before Prop 19)
Under California's Proposition 13 (passed in 1978), your property taxes are based on your original purchase price, increasing by a maximum of 2% per year. If you bought a home in Pasadena in 1985 for $200,000, your current tax base might only be around $370,000—even if your home is now worth $1.5 million.
Before Prop 19, moving to a new home triggered a full reassessment. Your new property tax would be calculated on the current market value, not your protected low tax base. For many LA County seniors, this meant a potential increase of $10,000 to $15,000 per year in property taxes—enough to make downsizing financially impossible.
The New Solution (With Prop 19)
Proposition 19, which became operative on April 1, 2021, eliminates this barrier. When you sell your primary residence and purchase a replacement primary residence anywhere in California, you can transfer your existing tax base to the new property.
Here's how it works in two scenarios:
Scenario 1: Buying an Equal or Less Expensive Home (Full Tax Base Transfer)
If your replacement home costs the same or less than what you sold your original home for, your tax base transfers completely with no adjustment.
| Transaction Detail | Amount |
|---|---|
| Original home sold for | $1,300,000 |
| Your current tax base | $370,000 |
| Replacement home purchased for | $950,000 |
| New tax base | $370,000 (full transfer) |
| Annual property tax (at 1.20% LA County rate) | $4,440 |
| Without Prop 19 | $11,400 |
| Annual savings | $6,960 |
Example for illustration purposes. Actual savings depend on individual property values and local tax rates.
Scenario 2: Buying a More Expensive Home (Adjusted Tax Base)
If you purchase a home that costs more than your original home's sale price, Proposition 19 still protects most of your tax base. The formula adds only the difference between the two home prices to your existing tax base.
The Formula:
New Tax Base = Old Tax Base + (New Home Price - Old Home Price)| Transaction Detail | Amount |
|---|---|
| Original home sold for | $1,100,000 |
| Your current tax base | $400,000 |
| Replacement home purchased for | $1,400,000 |
| Difference in price | $300,000 |
| New tax base | $700,000 ($400,000 + $300,000) |
| Annual property tax (at 1.20% LA County rate) | $8,400 |
| Without Prop 19 | $16,800 |
| Annual savings | $8,400 |
Example for illustration purposes. Actual savings depend on individual property values and local tax rates.
Even when buying a more expensive home, you're saving approximately 50% on property taxes compared to full reassessment.
Why This Matters in Los Angeles
Los Angeles County presents a unique financial landscape that makes Proposition 19 particularly valuable:
High Property Values, High Tax Impact
The median home price in areas like Pasadena, San Marino, and La Cañada Flintridge ranges from $1.1 million to $2+ million. Without Prop 19, moving within these communities would trigger property tax bills of $13,000 to $24,000+ annually for most seniors.
LA County's Effective Tax Rate
While California's Proposition 13 sets a base rate of 1% of assessed value, LA County homeowners pay an effective rate of approximately 1.20-1.25% when local school bonds, special assessments, and voter-approved measures are included. This means every dollar of assessed value you protect saves you $1.20-$1.25 per year, compounding annually.
The Downsizing Opportunity
Many LA County seniors live in large family homes purchased decades ago in neighborhoods like Sierra Madre, South Pasadena, or Altadena. These homes now require expensive maintenance, present accessibility challenges with stairs, and tie up significant equity. Prop 19 finally makes downsizing to a more manageable home—like a single-story condo in Pasadena or a smaller home in a 55+ community—financially sensible.
The Prop 19 Filing Process: 5 Essential Steps
Understanding the mechanics is only half the battle. Here's exactly how to secure your Prop 19 tax transfer:
Prerequisites:
- ☐ You are 55 years or older at the time your original home is sold
- ☐ Both your original and replacement properties are (or will be) your primary residences
- ☐ You are selling/buying within a two-year window
Step 1: Establish Your Current Tax Base
Before you list your home, obtain a copy of your most recent property tax bill. The "Net Taxable Value" or "Assessed Value" shown is your factored base year value—the number you'll transfer. In LA County, you can access this through the LA County Assessor's website at assessor.lacounty.gov.
Step 2: Understand Your Timing Options
You have a two-year window between selling your original home and purchasing your replacement home. Importantly, you can purchase your new home before or after selling your old one, as long as both transactions occur within this timeframe. The tax base transfer takes effect on whichever date is later: the sale of your original home or the purchase of your new home.
Step 3: Purchase Your Replacement Primary Residence
Locate and purchase your new home anywhere in California. Remember, it must be your primary residence—not a vacation home or investment property. You'll need to occupy it and claim the homeowners' exemption.
Step 4: File Form BOE-19-B
Within three years of purchasing your replacement property, file Form BOE-19-B (Claim for Transfer of Base Year Value to Replacement Primary Residence) with the county assessor where your new property is located. For Los Angeles County moves, contact:
Los Angeles County Assessor's Office
Phone: (213) 974-3211
Email: helpdesk@assessor.lacounty.gov
Website: assessor.lacounty.gov/proposition-19
Download the form at boe.ca.gov/prop19
Step 5: Provide Required Documentation
Include with your filing:
- Proof of age (driver's license or birth certificate)
- Closing documents from your original property sale
- Closing documents from your replacement property purchase
- Proof of occupancy as primary residence
Timeline: The assessor typically processes applications within 6-12 weeks. Your property tax bill will be adjusted retroactively if you file within the three-year window, though filing earlier helps you avoid paying higher interim taxes.
Frequently Asked Questions About Prop 19
Q: Can I use Proposition 19 if I'm moving from LA County to another California county?
Yes. One of the biggest changes Prop 19 made was eliminating geographic restrictions. You can transfer your tax base from Los Angeles County to any of California's 58 counties, including Orange, Riverside, San Bernardino, Ventura, or anywhere else in the state.
Q: What if I inherited my current home and don't know the original purchase price?
Your tax base is whatever assessed value appears on your current property tax bill, regardless of how you acquired the property. This includes inherited homes, gifted properties, or homes purchased decades ago. The LA County Assessor can help you verify your current tax base if you're unsure.
Q: How many times can I use Proposition 19?
Eligible homeowners age 55+ or severely disabled can use Prop 19 up to three times during their lifetime. This is a significant improvement over the old Prop 60/90 rules, which only allowed a one-time transfer. Wildfire and disaster victims have no limit—they can use the benefit once per disaster event.
Q: Do my spouse and I both need to be 55+?
No. If you're purchasing as a married couple, only one spouse needs to meet the age 55 requirement. The eligibility is determined as of the date you sell your original property.
Q: What happens if I buy my new home before I sell my old one?
This is allowed under Prop 19. As long as both transactions occur within two years of each other and at least one occurs on or after April 1, 2021, you qualify. However, be aware that you'll pay property taxes on the new home's full market value until you sell your original home and complete the transfer filing—then you'll receive a retroactive adjustment.
Q: Can I transfer my tax base if I'm downsizing to a condo or manufactured home?
Yes. Proposition 19 works for any type of primary residence, including single-family homes, condominiums, townhouses, mobile homes in resident-owned parks, and even boats or floating homes if they qualify as primary residences under California law.
Q: What if I used Prop 60 or Prop 90 before—do I still get three uses under Prop 19?
The official guidance from the Board of Equalization indicates that Prop 19 is a new, expanded benefit. Most seniors who used the old one-time Prop 60/90 benefit should have additional uses available under Prop 19's three-time limit, though specific circumstances can vary. Consult with the county assessor or a tax professional about your individual situation.
Q: Does this work for second homes or investment properties?
No. Both your original property and replacement property must be eligible for the California Homeowners' Exemption, meaning they must serve as your primary residence. Vacation homes, rental properties, and investment properties do not qualify.
Ready to Explore Your Downsizing Options?
If you're considering downsizing in Los Angeles County and want to understand exactly how Proposition 19 can help you save on property taxes, let's talk. As a Pasadena-based real estate expert with over 13 years of experience helping LA families navigate housing transitions, I can help you calculate your specific tax savings and find the perfect right-sized home.
Moving outside the LA area? No problem. I work with Prop 19 specialists throughout California and can connect you with a trusted expert in your target location—whether you're heading to San Diego, the Bay Area, Sacramento, or anywhere else in the state.
Contact Justin Borges:
📞 323.684.4421
✉️ Justin@theborgesrealestateteam.com
🌐 lametrohomefinder.com
Free consultation. No obligation. Just honest guidance on your Prop 19 options—wherever in California you want to go.
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 →
Legal Disclaimer
This article provides general information about Proposition 19 and is not legal or tax advice. Property tax regulations can be complex and individual situations vary. Always consult with a qualified tax professional or attorney for advice specific to your circumstances. Proposition 19 rules and regulations are subject to ongoing clarification by the California State Board of Equalization and individual county assessors.
Market Disclaimer: Real estate market conditions and property values change frequently. Data presented reflects information available as of the publication date. Property tax rates vary by Tax Rate Area (TRA) within Los Angeles County. For current market analysis specific to your property and precise tax calculations for your situation, contact Justin Borges directly.
