Prop 19 Calculator: What an Inherited California Home Means for Your Property Taxes

If you've inherited a home in California — or expect to — Proposition 19 likely changes the property taxes on it. This free calculator gives you a plain-English estimate of your new annual property tax after a parent-to-child transfer, so you can see roughly what you're dealing with before you talk to anyone. It's an estimate, not tax advice — but it's the part most people have to guess at, and here you don't.

How Proposition 19 changed inherited-property taxes

Before Prop 19, a child could inherit a parent's home and keep the parent's low Proposition 13 tax basis, often for life. Proposition 19 took effect February 16, 2021 and narrowed that sharply. Now, inheriting a parent's home triggers a property-tax reassessment in most cases — unless you qualify for a limited exclusion and follow its rules closely.

The parent-to-child exclusion (and its limits)

You may be able to keep part of your parent's lower tax basis only if both of these are true:

1. The home was your parent's principal residence, and
2. You make it your own principal residence within one year of the transfer (and file the required claim, including the homeowner's exemption).

Even then, the protection is capped. As of the period February 16, 2025 through February 15, 2027, the exclusion amount is $1,044,586 (this figure is adjusted every two years by the California Consumer Price Index, so confirm the current number when you read this).

Here's how the cap works in practice:

• If the home's market value at transfer is less than your parent's existing assessed value plus $1,044,586, you generally keep the old basis.
• If the market value is more than that, your new assessed value is roughly market value minus $1,044,586.

Example: if your parent's home is worth $2,000,000 at transfer, the new assessed value would be about $2,000,000 − $1,044,586 = $955,414 — and your taxes are based on that higher number.

What if you don't move in, or it was a rental?

If you keep the home as a rental or second property — or simply don't make it your primary residence within the one-year window — there is no exclusion, and the property is reassessed to its full current market value when title transfers. That can be a large jump, which is exactly what this calculator helps you see.

How to use this calculator

Enter your parent's most recent assessed value and the home's current estimated market value. The calculator estimates your new annual property tax and the increase over what your parent paid. It uses an estimated tax rate of about 1.1% of assessed value — your actual rate depends on your county and local voter-approved levies, so treat the result as a close estimate, not an exact bill.

Your options once you know the number

There's rarely one right answer — it depends on your family, your timeline, and what you want the property to do for you:

• Move in as your primary residence to preserve much of the original basis (mind the one-year window).
• Keep and rent it — the reassessment applies, but rental income may offset the higher tax.
• Sort out shared ownership among heirs before friction sets in.
• Sell on your own timeline to end the ongoing tax question.

I've already run the math most people have to guess at. I know the Peninsula market and the Prop 19 timing details, and I can be your single point of contact to the right specialists — a CPA for exact numbers, an attorney for title questions, an agent if you decide to list. No pressure and no quick-cash pitch. If you want to think through your options as an heir, or you're considering a direct sale, start with a quick conversation.

Frequently asked questions

Do I have to pay higher property taxes on a house I inherited in California?
In most cases under Prop 19, yes — inheriting a home triggers reassessment. You may keep part of the lower basis only if it was your parent's primary residence and you make it your own primary residence within one year, and even then the protection is capped at $1,044,586 (Feb 2025–Feb 2027). This is an estimate, not tax advice; confirm with a CPA.

What is the Prop 19 exclusion amount right now?
$1,044,586 for transfers in the window February 16, 2025 through February 15, 2027. It's adjusted every two years by the California CPI, so verify the current figure.

Does Prop 19 apply if I rent out the inherited house?
No exclusion applies to a rental or non-primary residence — the home is reassessed to full current market value at transfer.

How much will my new property tax be?
Roughly your new assessed value × about 1.1% (the exact rate varies by county and local levies). Use the calculator above for an estimate specific to your numbers.

Do I have to sell the house to you to use this?
No. The estimate is free and there's no obligation. Many people just want a clear picture of their choices — that's the whole point.

Estimate only. Not legal or tax advice. Consult a CPA or attorney for guidance specific to your situation.

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