Prop 19 Calculator
Inherited home property tax · Rev. & Tax. Code §63.2Estimate the Property Tax on an Inherited Home
See what the property tax becomes if a child moves in, compared with a full reassessment, under California’s Proposition 19.
How Prop 19 Works
For transfers on or after February 16, 2021, a child keeps a parent’s low assessed value only when:
- the home was the parent’s principal residence, and
- a child makes it their principal residence and files for the homeowners’ exemption within one year.
Even then, the low value is protected only up to the parent’s value plus an exclusion amount, adjusted every two years:
| Transfer date | Exclusion |
|---|---|
| Feb 16, 2021 – Feb 15, 2023 | $1,000,000 |
| Feb 16, 2023 – Feb 15, 2025 | $1,022,600 |
| Feb 16, 2025 – Feb 15, 2027 | $1,044,586 |
If market value ≤ assessed value + exclusion:
keep the parent’s value
Otherwise:
new value = market value − exclusion
Example (from the Board of Equalization): assessed value $300,000, market value $1,500,000. With a $1,000,000 exclusion, $1,300,000 is excluded and the $200,000 excess is added, so the new assessed value is $500,000.
Rentals, vacation homes and other property that wasn’t the parent’s residence are reassessed to market value. Sources: Rev. & Tax. Code §63.2, Board of Equalization Prop 19 guidance.
This information is general in nature and is not legal advice. Every estate is different — consult your trust and estate attorney about your specific situation. Estimates only; the county assessor determines the assessed value. Excludes the effect of supplemental assessments and special assessments.
Property Tax, Compared
Annual property tax by scenario
Extra tax over 10 years vs. the parent’s bill
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Keep, Rent or Sell?
Prop 19 changed the math for most Southern California families. In Los Angeles, Orange and San Diego Counties, a home a parent bought decades ago often carries an assessed value far below today’s market, so a full reassessment can multiply the tax bill several times over. When no child will live in the home, keeping it as a rental means paying tax on the full current value.
That is why the timing of a trust or probate sale matters. Heirs who plan to sell can usually avoid carrying a reassessed tax bill for long, and a well-prepared sale captures today’s value for every beneficiary. If one child wants to keep the home, the numbers above help the family decide whether a buyout makes sense.
Prop 19 FAQs
How does Prop 19 change property taxes on an inherited home in California?
For transfers on or after February 16, 2021, a child who inherits a parent’s home keeps the parent’s assessed value only if the home was the parent’s principal residence and the child makes it their own principal residence within one year. Even then, the low value is kept only up to the parent’s factored base year value plus an inflation-adjusted amount ($1,044,586 for transfers from February 16, 2025 to February 15, 2027). Anything above that is added to the assessed value. All other inherited property, such as rentals and vacation homes, is reassessed to market value.
What if none of the children will live in the inherited house?
Then the home is reassessed to its full market value as of the date of death, and property taxes are recalculated on that value. This is why many families sell, rent at market rates, or plan the sale carefully when no heir will occupy the home.
Do all the children have to move in?
No. According to the Board of Equalization, at least one eligible child must make the home their family home. If that child later moves out, the property is reassessed at that point.
What forms do heirs need to file for Prop 19?
The child files a homeowners’ exemption claim (BOE-266) or disabled veterans’ exemption claim within one year, and the parent-child exclusion claim (BOE-19-P, or BOE-19-G for grandchildren) within three years of the date of death or before transfer to a third party, whichever is earlier. Forms are filed with the county assessor where the property is located.
Can grandchildren use the Prop 19 exclusion?
Only if the grandchild’s parent who was the grandparent’s child is deceased on the date of transfer. Grandchildren file Form BOE-19-G.
Does Prop 19 apply to inherited rental property?
The parent-child exclusion no longer covers rentals, vacation homes or other property that was not the parent’s principal residence (family farms are the exception). Those properties are reassessed to market value at the transfer.
What if my parent died before February 16, 2021?
Transfers on or before February 15, 2021 fall under the prior law (Propositions 58 and 193), which generally allowed parents to pass their principal residence and up to $1 million of other assessed value to children without reassessment, regardless of whether the child moved in.
Deciding What to Do With an Inherited Home?
We give heirs, trustees and their attorneys a written valuation and a clear keep, rent or sell analysis. Ask for a confidential consultation.
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