A big share of the older homeowners I work with are moving to be closer to their children and grandchildren. The kids have long since been priced out of Silicon Valley and are raising families in Roseville, Folsom, Santa Cruz, the Central Valley, or Southern California. Before Prop 19, a move like that usually meant giving up a low Prop 13 assessed value and paying tax on the full price of the new home. Now homeowners 55 and older can take their assessed value with them to any county in California. This article covers how that works across county lines, what it doesn’t cover, and what changes if the move is out of state. It’s part of my guide to Prop 19 for Silicon Valley families.
Key Takeaways
Summary: Since 2021, homeowners 55 and older can take their Prop 19 base-year value to any California county, which makes moving closer to family far more affordable. It covers base property tax but not Mello-Roos, and it doesn’t follow you out of state.
How It Works Across County Lines
The rules are the same as for a move within Santa Clara County. At least one owner must be 55 or older when the original home sells, both homes must be primary residences, and the replacement must be bought within two years before or after the sale. The replacement’s value must be no more than 100 percent of the original’s sale price if bought first, 105 percent within a year after, or 110 percent in the second year. Above that, the difference is added. The mechanics are in the Prop 19 base-year transfer for homeowners 55 and older. The only real difference is that you file with the new county’s Assessor, who confirms the details with the Santa Clara County Assessor.
A San Jose to Roseville Example
A couple in their late 60s in Almaden Valley has an assessed value of about $380,000 on a home that sells for $2,000,000. Their son lives in Roseville, and they buy a single-level home in a 55-plus community there for $750,000.
| Without Prop 19 | With Prop 19 transfer | |
|---|---|---|
| Assessed value on the new home | $750,000 | $380,000 |
| Base property tax at about 1.1 percent | About $8,250 | About $4,180 |
| Mello-Roos or community facilities tax, if any | Not affected | Not affected |
The base tax savings are about $4,000 a year here, less dramatic than a Saratoga to Los Gatos move simply because the new home costs less. What surprises many of my clients is the second line. Many newer communities in Placer and Sacramento counties have Mello-Roos or other special assessments that can add a meaningful amount a year on top of the base tax, and Prop 19 does nothing about those. Ask for the full tax bill on any home you’re considering, not just the rate.
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Buying in Another County Before Selling
For a move near family, buying first is usually the less stressful path, because you can move once, settle in, and then sell the Silicon Valley home empty, clean, and staged. When you buy first, the replacement must be no more than 100 percent of what the original sells for, and in a move from Silicon Valley to a less expensive area that’s rarely an issue. The challenge is financing two homes briefly. I help clients look at bridge loans, lines of credit against the current home, and brokerage programs that front preparation costs, so the timing works. This is also where coordination across two markets matters. I work with trusted agents in the destination area and handle the Silicon Valley sale myself.
A real example: One of my sellers couldn’t buy her next home without the proceeds from her current one, and couldn’t leave without somewhere to go. We sold first, with a 10-day free stay after closing written into the contract, then wrote a full-price cash offer on a single-level home contingent on her sale. When her buyer pushed closing from July 1 to July 11, I moved her purchase to July 18 so the stay covered the gap, and $721,033.75 went straight from one escrow to the other. Her new home was in the same part of the county, but the sequencing works the same way when you’re crossing county lines.
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What if the Move Is Out of State?
Prop 19 is a California rule, so it only helps if the replacement is in California. If you’re moving to Nevada, Arizona, Texas, Oregon, Washington, or anywhere else, your property tax will follow that state’s rules, which can be very different. Some states have homestead exemptions or senior freezes, and some have higher effective rates than California. On the income tax side, California taxes the gain on the sale of California real estate even if you have moved away by the time of the sale, so the $250,000 or $500,000 home sale exclusion and your California tax picture still matter. I recommend a CPA review before listing if an out-of-state move is part of the plan.
Questions to Ask Before You Choose a Destination
- What is the full annual tax bill on homes you like, including Mello-Roos and special assessments?
- Is the home single-level, or can it be adapted for aging in place?
- How far is it from your family’s actual home, not just their city?
- What are the HOA dues and what do they cover in a 55-plus community?
- How close are the hospitals and specialists you’ll need?
My article on the best Silicon Valley neighborhoods for senior downsizers covers staying local, and the full Prop 19 picture is in my guide to Prop 19 for Silicon Valley families.
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Frequently Asked Questions
Can I transfer my Prop 13 base to another county in California?
Yes. Under Prop 19, homeowners 55 or older can transfer their assessed value to a replacement primary residence in any California county, up to three times.
Where do I file the Prop 19 base-year transfer when moving counties?
File form BOE-19-B with the Assessor in the county where the new home is located.
Does Prop 19 cover Mello-Roos taxes?
No. The base-year transfer affects the base property tax. Mello-Roos and other special taxes still apply in full.
Does Prop 19 work if I move out of California?
No. Prop 19 applies only to replacement homes in California. Other states have their own property tax rules.
Does California tax the sale of my home if I have already moved out of state?
California generally taxes gain on the sale of California real estate regardless of where you live when it sells. The federal and California home sale exclusion may still apply if you qualify.
Sources and Further Reading
- California State Board of Equalization: Proposition 19
- California State Board of Equalization: Change in Ownership FAQ
- Santa Clara County Office of the Assessor
Downsizing Done Right
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