“How do I downsize in San Francisco and keep my low property tax under Prop 19?”

You can absolutely downsize in San Francisco, keep your low property tax, and not make

yourself crazy in the process — you just have to sequence it right and use Prop 19 the way it was designed. Here’s how I walk my 55+ clients through it.

TL;DR — why downsizing in 2025–26 SF actually works

• You’re sitting on a lot of equity (most longtime SF owners are).

• Prop 19 lets you transfer your current tax base up to three times, anywhere in California, if you’re 55+. (California State Board of Equalization)

• You can sell first, take a rent-back for 30–60 days, and buy your next place without doing a double move.

• Yes, SF has a city transfer tax when you sell — we just plan for it so it doesn’t surprise you. (San Francisco Government)

• Net result: lower maintenance, simpler life, and you keep that low Prop-13-style payment.

CTA: Let’s map your equity + tax plan before you make the move — call/text 415-793-7633.

What “downsizing” actually is

Downsizing is not “I sold Noe and bought a smaller box.”

Real downsizing =

1. Equity release (turning a big, highly appreciated SF home into cash you can live on),

2. Lifestyle shift (less stairs, less maintenance, better walkability or closer to family), and

3. Tax planning (so your payment doesn’t jump).

When we do it right, your monthly property tax on the new place looks a lot like the old one — even if the new place costs more — because Prop 19 lets us carry over your base year value and only add the difference, up to 3 times. (California State Board of Equalization)

How it works in California + SF

Here’s the plain-English version:

1. You sell your SF primary home. Because we’re in SF, the seller typically pays the city transfer tax, which ranges from about 0.5% up to 6% depending on price. Most retiree/empty-nester sales fall in the ~$1M–$5M band, which is $3.75 per $500 (0.75%). We budget this up front. (San Francisco Government)

2. You buy a replacement primary residence in California — can be in SF, Marin, Sonoma, Peninsula, even Palm Springs — and you apply to transfer your tax base with the county (SF has a page for this). Timing matters: one of the two events (sale or purchase) has to be within the allowed Prop 19 window. (San Francisco Government)

3. Price higher than what you sold for? You keep your old taxable value and add only the difference — still way better than starting a brand-new tax bill. (San Francisco Chronicle)

4. You can do this up to 3 times in your lifetime under Prop 19 (this is new vs. the old 60/90 rules). (California State Board of Equalization)

5. We use a rent-back on the sale of your SF home to give you 30–60 days to find/move into the next home so you aren’t moving into storage or a hotel.

That’s the whole play.

Neighborhood / move paths I’m seeing

Here are real-world paths I help with:

• Sell Noe / Bernal / Inner Sunset → buy new/updated condo or smaller SFR in Dogpatch, South Beach, Mission Bay (elevators, parking, low maintenance, closer to health care).

• Sell in SF → move to West Portal / Sunnyside / Lakeside for flatter streets and a house that doesn’t need you on a ladder every month.

• Sell in SF → move to Marin (Mill Valley, Corte Madera) or Sonoma (Sonoma, Glen Ellen) or Peninsula (San Mateo, Burlingame) to be near kids/grandkids — still CA, so Prop 19 portability works. (arcc.marincounty.gov)

• Sell 2-unit or small investment in SF → buy one-level condo/townhome + keep cash for retirement.

Point is: you don’t have to stay in SF for this to work — it’s statewide.

Downsizer strategies that save you money

1. Pre-list tune-ups, not renovations. Paint, floors, lighting, landscaping, small punch list → faster sale, better price.

2. Sequence the sale → buy. We list once we know roughly what/where you want to buy so we can time the rent-back.

3. Rent-back in the offer terms. We counter buyers to give you enough time to shop. Buyers will often do it if we price right.

4. Consider selling early-market/off-market. If you don’t want neighbors seeing everything, we can test demand quietly and still get a rent-back.

5. If it’s an investment property: 1031 can be on the table, but that’s a separate tax conversation with your CPA — we just make sure the sale calendar matches the exchange timeline.

6. Talk to me before you touch your tax base. Once you sell, we want to move on the replacement so you don’t fall outside the allowed period. (Sacramento County Assessor's Office)

   
   

Retiree / Empty-Nester FAQs

1. “Will I lose my tax base?”Not if you qualify (55+, primary residence, within the timing rules) and you file the Prop 19 transfer. You can keep your low base and take it with you, up to 3 times. (California State Board of Equalization)

2. “Can I do this if I haven’t found the next place?”Yes — that’s why we negotiate a rent-back or longer escrow on the sale so you have a runway to shop.

3. “What if my replacement home costs more?”You still keep your original taxable value and only add the difference over your sale price — way cheaper than starting fresh. (San Francisco Chronicle)

4. “Can I leave SF and still keep my tax base?”Yes. Prop 19 is statewide — SF to Marin/Sonoma/Peninsula/Sacramento/Palm Springs all work, as long as you meet the rules. (California State Board of Equalization)

5. “Can I help my kid buy instead?”You can absolutely sell and gift/transfer cash/equity to help a child buy — just remember Prop 19 tightened parent-child exclusions on them keeping your tax base, so we plan around that. (That’s a “talk to CPA + Clay” moment.) (San Francisco Chronicle)

6. “What about the SF transfer tax — can I avoid it?”Not really — in SF the seller typically pays it. We just price/structure to net what you want. (San Francisco Government)

7. “Do I have to do this in 2025–26?”No, but those years should be good for sellers who are bringing a nicely prepped home to market and buyers who want updated, low-maintenance homes. If rates ease a bit more, demand will stay healthy.

If you’re 55+ in San Francisco and you’ve got a low tax base, do not list first and ask questions later. Let’s map this out so you keep the tax benefit, avoid a double move, and come out of the sale with cash in the bank.

Let’s map your equity + tax plan before you make the move — call/text 415-793-7633.