What Prop 19 changed

California limits how fast a property's taxable value can rise (Proposition 13). A sale or inheritance normally resets that value to current market value. Before Prop 19, a child inheriting a parent's home could often keep the parent's low value. Prop 19 narrowed that. The rule now sits in Revenue and Taxation Code section 63.2, and the State Board of Equalization (BOE) explains it on its Prop 19 page.

In short: the low value carries over only for a home the child makes their own family home, and only up to a limit. Anything above the limit is taxed at market value.

Who qualifies

  • Parent to child. The exclusion can apply to a principal residence (or a family farm, which this guide does not cover).
  • Grandparent to grandchild. Only if the grandchild's parent (the grandparent's child) was deceased on the transfer date.
  • Siblings and others. BOE Rule 462.520 says there is no exclusion for transfers between siblings. A sibling buying out another sibling's share can have that share reassessed.

When several children inherit and at least one qualifies and lives there, BOE rule examples show the whole property keeping the excluded value while that continues. How a share is treated after a buyout is a question for the assessor or a professional.

The family-home rule

The child has to make the home their principal residence, and has to claim the homeowners' exemption (or the disabled veterans' exemption) within one year of the transfer. If the claim comes after that year, the benefit applies going forward only. If the home later stops being the child's principal residence, it is reassessed at market value.

Renting the house out, or keeping it as a second home, does not meet the rule.

The exclusion amount

Limit = parent's taxable value + exclusion amount New taxable value = parent's taxable value + (market value - limit), never less than the parent's value

The BOE sets the exclusion amount and adjusts it every two years. For transfers from February 16, 2025 through February 15, 2027 it is $1,044,586 (up from $1,022,600). It adjusts again after February 15, 2027, so use the amount for your transfer date. Source: BOE news release NR-25-02.

If the home's market value on the transfer date is at or below the limit, the taxable value stays at the parent's value (then grows by the usual annual inflation factor, capped at 2%).

Worked example

Example numbers only, not your house. A parent's taxable value is $300,000. The home is worth $1,500,000 when the child inherits it, and the child moves in and claims the exemption in time.

  • Limit: $300,000 + $1,044,586 = $1,344,586
  • Amount above the limit: $1,500,000 - $1,344,586 = $155,414
  • New taxable value: $300,000 + $155,414 = $455,414

Without the exclusion, the same home would be taxed on $1,500,000. If the market value were $1,200,000 instead, it is under the limit and the taxable value would stay at $300,000.

These example numbers match the example in our spreadsheet kit. Your county assessor sets the real figure.

The claim window

The exclusion is not automatic. Heirs file a claim with the county assessor: form BOE-19-P for parent to child, BOE-19-G for grandparent to grandchild. The claim is due within 3 years of the date of death or transfer, or before the property is transferred to a third party, whichever is earlier. Missing the date can cost the exclusion, so put it on a calendar early.

Do not mix this up with the one-year homeowners' exemption deadline above. They are two different clocks.

When to ask a professional

  • Whether a transfer through a trust or probate counts as a parent-to-child transfer.
  • A sibling buyout, or an inheritance split among heirs who do not all qualify.
  • Income tax, sale, depreciation and estate filings.
  • Whether a new law has changed anything since the date below.

As of November 4, 2026, the state's list of qualified 2026 ballot measures has none that changes this rule. Laws change, so confirm with the BOE or your county assessor before you act.

Educational only. This page is general information, not legal, tax or investment advice. Ask an attorney or CPA about your situation.

FAQ

Does Prop 19 let my child keep my low property tax when they inherit my house?

Sometimes. A parent-to-child transfer can keep the parent's low taxable value, plus the exclusion amount, if the child makes the home their principal residence. If the child does not, the property is reassessed at current market value.

What is the Prop 19 exclusion amount?

The State Board of Equalization sets it by notice. It is $1,044,586 for transfers from February 16, 2025 through February 15, 2027, and it is adjusted again after that. Check the BOE page for the amount that applies to your transfer date.

How soon does the child have to move in?

The eligible child must make the home their principal residence and claim the homeowners' exemption (or the disabled veterans' exemption) within one year of the transfer. A claim filed after that year applies only going forward.

How long do I have to file the Prop 19 claim?

The BOE-19-P (parent to child) or BOE-19-G (grandparent to grandchild) claim is due within 3 years of the date of death or transfer, or before the property is transferred to a third party, whichever is earlier.

Does Prop 19 apply to siblings who inherit together?

The exclusion is for parent-to-child and some grandparent-to-grandchild transfers. BOE Rule 462.520 says there is no exclusion for transfers between siblings, so a buyout between siblings can reassess the bought share. Ask the county assessor or a professional.