July 2026

What You Should Know About California’s Parent-Child Property Tax Exclusion

By Office Staff|2026-07-28T10:13:14-07:00July 28, 2026|Categories: California Tax Planning|Tags: Parent-Child Exclusion, Parent-Child Property Tax Exclusion|0 Comments

Start Here: California’s parent-child property tax exclusion can help preserve a family’s lower property tax value when a home passes from one generation to the next. The rules changed significantly under Proposition 19, which was passed into law in November of 2020. To qualify for the exclusion now depends on how the property is used, who receives it, when required forms are filed, and the home’s value. If you’d like a deeper overview of Prop 19, including the rules for transferring your property’s taxable value when you move, see our companion blog post, Understanding Proposition 19: Property Tax Planning for California Homeowners.

Passing a home from one generation to the next often involves more than estate planning. California property tax rules can have a lasting effect on the cost of owning inherited property, and understanding those rules before making a transfer can help your family members and loved ones avoid unexpected tax consequences.

Here at SWC, we closely monitor changes to federal tax law and California property tax rules. Our ongoing attention allows us to incorporate new tax planning opportunities into each client’s personalized tax-saving and wealth-building strategy while helping them make informed financial decisions.

Understanding California’s Parent-Child Property Tax Exclusion

California generally reassesses real property (aka, real estate) to its current market value when ownership changes hands. A higher assessed value often results in higher annual property taxes.

One important exception applies to certain transfers between parents and children. When all of the state’s statutory requirements have been met, the transfer may qualify for an exclusion from reassessment, allowing the child to retain some or all of the parents’ existing taxable value instead of receiving a full reassessment.

Proposition 19 substantially changed these rules for transfers occurring on or after Feb. 16, 2021. Today, the exclusion is more narrowly applied than it was under prior law.

Who Qualifies as a “Child” for California’s Parent-Child Property Tax Exclusion?

For purposes of the parent-child exclusion, California law generally recognizes the following relationships: Continue reading… Continue reading… Continue reading…

Understanding Proposition 19: Property Tax Planning for California Homeowners

By Office Staff|2026-07-23T16:27:11-07:00July 23, 2026|Categories: California Tax Planning|Tags: California Prop 19, Property Transfer|0 Comments

Start Here: Prop 19 (aka, Assembly Constitutional Amendment No. 11) allows certain California homeowners to transfer the taxable value of their principal residence to a replacement principal residence anywhere in the state. It also provides a limited property tax exclusion for qualifying transfers of a family home or family farm between generations. Read this post to determine whether taking advantage of Prop 19 might reduce the property tax impact of moving within California or transferring qualifying property to a child or grandchild. Timing, occupancy, property value, and filing requirements can affect the available property tax relief. (If you’d like help, contact our San Diego tax planning and financial strategy firm by phone at (858) 487-4580 or email: admin@swc.cpa. We’re here to help!)

California property laws continue to evolve, creating both opportunities and tax planning considerations for homeowners and families alike. Proposition “Prop” 19, for instance, changed the rules governing certain property tax transfers, affecting homeowners who relocate within California as well as families planning to transfer real estate from one generation to the next.

As one of California’s premier tax planning and financial strategy firms, we closely monitor changes to federal tax law and the state’s property tax rules. That ongoing attention allows us to incorporate new planning opportunities into each client’s personalized tax-saving and approach to wealth-building while helping them avoid costly surprises.

In this SWC blog post, we discuss two parts of Prop. 19 that may affect your property taxes:

Base year value transfers for qualifying homeowners who relocate within California
Intergenerational transfer exclusions for qualifying family homes or family farms

Understanding California Prop 19

California voters approved Prop 19 on Nov. 3, 2020. Senate Bill 539 later established procedures for its intergenerational exclusions and base-year value transfers, which is just a fancy way of saying a set the rules for property tax transfer and family inheritance provisions.

As a result of the new law, beginning April 1, 2021, qualifying California homeowners could sell their principal residence and transfer its taxable value to a replacement principal residence anywhere in California. A homeowner may also qualify based on age or a severe and permanent disability. Separate rules cover qualifying victims of wildfire or a governor-declared disaster.

Understanding Taxable Value: Taxable value simply means the property’s base year value plus inflationary adjustments. You may also see this amount called the factored base year value.

For example, suppose you’ve owned a home in San Diego for the last 20 years and its taxable value has reached $400,000. Assume the County Assessor determines that the home’s current market value equals $1 million.

If you sell that home and buy another principal residence anywhere in California with an equal or lower market value, you may transfer the $400,000 taxable value to the home you bought. In other words, your property tax would generally begin with the transferred $400,000 taxable value rather than the replacement home’s full market value.

A higher-priced home may also qualify.

Suppose the replacement home has a market value of $1.3 million and you purchase it before selling the original home. The difference in market value equals $300,000: Continue reading… Continue reading… Continue reading…