Typically when a home is transferred from one person to another, property taxes are reassessed on the home at it’s current market value. Having a property’s value reassessed can cost the new owner thousands of dollars a year in property taxes. California Proposition 19 allows for a grandparent to transfer a property to a grandchild while avoiding property tax reassessment under the following conditions:
- Property was the primary residence of the grandparent (owner-occupied)
- Property will be the primary residence of the grandchild (owner-occupied)
- The current assessed value plus $1,022,600 (increased from $1,000,000 on 2/16/2023) will be the maximum benefit and may be transferred without a change in property taxes. Any amount over this will be added to the assessed value and taxed at the normal rate.
This Proposition 19 Grandparent to Grandchild Transfer Benefit Calculator will help you determine how much you may be able to save by avoiding property tax reassessment on an inherited home.