Wills, Trusts & Probate · Taxes and benefits
Inherited homes and property taxes (Prop 19)
In this guide
- Transfers of property generally trigger a new property tax assessment.
- Under Prop 19, a family home passed from parent to child can keep part of its old tax value if the child moves in as their main home.
- Rentals and second homes passed from parent to child are generally reassessed.
Why this comes up
California property taxes are based on assessed value, which usually resets when property changes owners. Since February 16, 2021, Proposition 19 has limited the older parent-to-child exclusion.
The family home exclusion
A family home passed from parent to child can avoid full reassessment when it becomes the child’s principal residence and the child files for the homeowners’ exemption within one year. Grandparent-to-grandchild transfers can qualify when the grandchild’s parents have died. The excluded amount is capped: the home’s existing taxable value plus an adjusted amount. Any market value above the cap is added to the taxable value.
Other property, such as rentals and vacation homes, passed from parents to children is generally reassessed at market value. Family farms have their own rules.
Claim forms
The exclusion is claimed with the county assessor using BOE-19-P (parent to child) or BOE-19-G (grandparent to grandchild).
Figures and time frames (Board of Equalization)
- Exclusion cap for transfers from Feb 16, 2025 to Feb 15, 2027: taxable value plus $1,044,586
- Homeowners’ exemption: filed within 1 year of the transfer for the full benefit
- Claim form BOE-19-P or BOE-19-G: within 3 years of the date of death or transfer, or before transfer to a third party, whichever is earlier
- Change in ownership statement after a death (BOE-502-D): generally within 150 days of the death
Each county assessor applies these rules and answers questions about specific properties.
Official sources for this guide
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