Does Prop 19 apply to an inherited home in California?
By Sam Yusufi, Certified Probate & Trust SpecialistUpdated
Yes, for inheritances since February 2021. A child who inherits a parent's home keeps the parent's property tax base only if they make it their own primary residence within one year, and only up to a certain value. Otherwise, the home is reassessed at today's market value, which can mean a much higher tax bill.
The common assumption
"I inherited my parents' house, so I keep their low property tax bill." Since February 2021, that's often not true.
How it works
- If you move in and make it your primary residence within one year, you can keep your parent's tax base, up to a set value limit.
- If you don't move in, for example if you rent it out or keep it empty, the home is reassessed at current market value.
Say your parents' home is assessed at $150,000 for tax purposes, and it's worth $1,100,000 today. If it's reassessed, property taxes are based on about $1,100,000 instead, roughly seven times the old amount.
And here's why it matters: if anyone in the family is thinking about keeping the house, talk to a CPA about Prop 19 before you decide.