Prop 19 Explained: What San Francisco Homeowners Over 55 Need to Know
- Clay Gjevre
- Oct 17, 2025
- 4 min read
by Clay Gjevre
For many longtime San Francisco homeowners, low property taxes are one of the biggest advantages of staying put. But that same tax base often makes people feel stuck—how can you move without losing your Prop 13 benefit? Proposition 19 changed the game for homeowners 55 and over, making it possible to move anywhere in California while keeping your low tax base. Here’s how it works and why it matters, especially in San Francisco.
What Prop 19 Actually Does
If you’re 55 or older, you can transfer your current property-tax base (your Prop 13 value) to a new primary residence anywhere in California.
You can use this benefit up to three times in your lifetime.
The new home can be equal, less, or even more in value than your current one.
It must become your primary residence, and you’ll need to claim the homeowner’s exemption there.
In plain terms: Prop 19 lets you move your low tax rate with you, avoiding a major tax jump when buying a new home.
How the Math Works
There are two main scenarios:
1️⃣ If your new home costs the same or less:Your old assessed value transfers directly.Example: If your assessed value is $450,000, you sell for $1.2 million and buy for $1.15 million. Your new assessed value stays around $450,000.
2️⃣ If your new home costs more:You’ll add the price difference to your old assessed value.Example: Assessed at $450,000, sell for $1.2 million, buy for $1.4 million → difference $200,000 → new assessed value ≈ $650,000.
That’s still far lower than being reassessed at the full $1.4 million—saving thousands annually.
Pro tip: Keep your closing statements and purchase prices handy. Counties use these to verify your claim, and mistakes can delay or reduce your benefit.
Timing and Filing Requirements
To qualify, your sale and purchase must occur within a two-year window—you can buy first or sell first. Once you move into the new home:
File your Prop 19 base-year transfer claim with the county assessor.
File for the homeowner’s exemption at the new address.
Don’t wait—late filings can delay or reduce your benefit.
Effective Dates:
Portability took effect April 1, 2021.
Inheritance rules changed February 16, 2021.
A top San Francisco real estate agent or experienced broker can help coordinate these steps with your lender, CPA, and title team to keep your transfer on track.
Inheritance Rules You Should Know
Prop 19 tightened the old parent-child and grandparent-grandchild exclusions:
It now applies only to a primary residence (or family farm).
The child or grandchild must move in and claim the homeowner’s exemption—typically within one year.
There’s a benefit cap, and any value above that is reassessed.
Second homes and investment properties no longer qualify.
If you plan to leave a home to family, it’s important to review this with your CPA or estate attorney. Many top realtors in San Francisco now recommend coordinating estate plans early to avoid surprises later.
Why This Matters in San Francisco
San Francisco is filled with longtime homeowners sitting on incredible equity and very low tax bases. Prop 19 allows you to use that equity to move into something that better fits your life—without doubling or tripling your tax bill.
Whether you’re ready to trade stairs for an elevator, move closer to family, or relocate to Marin, the Peninsula, the East Bay, or Wine Country, this law opens the door to real options.
In a tight market, this can also help you buy first before selling—reducing stress and helping you land your ideal next home on your timeline.
How to Use Prop 19 Without the Stress
Here’s a simple playbook for California homeowners 55 and older:
Map your numbers: Check your current assessed value, expected sale price, and target purchase budget.
Choose your strategy: Decide whether to buy first or sell first. Both work under Prop 19.
Get your paperwork ready: Download the county Prop 19 claim form and homeowner’s exemption form before closing.
Tell your lender: Let them know you’re transferring a Prop 19 base so they don’t over-collect impounds.
Plan for estate impacts: If you intend to leave your home to family, update your trust or will with qualified counsel.
Working with a top real estate broker in San Francisco can make this smooth and strategic—so you don’t miss deadlines or leave money on the table.
Final Thoughts
For 55+ homeowners in San Francisco, Prop 19 can unlock your next chapter without the financial shock of higher property taxes. You can downsize, move closer to family, or enjoy a new lifestyle anywhere in California while keeping much of your tax advantage.
If you’re thinking about selling and want to understand your exact numbers, connect with a local expert who knows how Prop 19 plays out across the best neighborhoods in San Francisco—from Noe Valley and Bernal Heights to the Sunset and Marina.
📲 Call or Text: (415) 481-4074
📧 Email: Clay@ClayGjevre.com
🌐 Website: https://www.claygjevre.com/
📍 Need a Referral outside San Francisco: https://www.claygjevre.com/referral
Clay Gjevre San Francisco Realtor®
Vantage Realty
DRE 02099237
Comments