Primary sources: the California State Board of Equalization and the Orange County Assessor. This page is educational, not legal or tax advice.
What Proposition 19 changed
California voters approved Proposition 19 in 2020. For intergenerational transfers on or after February 16, 2021, the exclusion is generally limited to a family home that was the transferor’s principal residence and becomes the principal residence of an eligible transferee. Other real property—such as a rental home—does not qualify for this intergenerational exclusion.
The one-year occupancy filing rule
For a family home, at least one eligible child receiving the property must make it a principal residence and claim the homeowners’ exemption (or disabled veterans’ exemption) within one year of the transfer. When property is held in a revocable trust that becomes irrevocable at death, the BOE explains that the date of death is typically the change-in-ownership date.
If two or more children receive the home, the BOE says they do not all need to live there. At least one eligible transferee must occupy it as a principal residence and file the exemption claim on time, assuming all other requirements are met.
The separate Prop 19 exclusion claim generally has a longer filing period—within three years of transfer or before a transfer to a third party, whichever comes first—but waiting can affect when relief applies. Confirm your exact filings directly with the Assessor.
The exclusion is not unlimited
Prop 19 compares the home’s market value at transfer with its taxable value plus an exclusion amount adjusted every two years. For transfers from February 16, 2025 through February 15, 2027, the BOE published an exclusion amount of $1,044,586. If market value exceeds the applicable limit, the excess is added to the transferred taxable value.
Source: BOE’s 2025 adjusted exclusion announcement. The amount changes; use the amount applicable on the transfer date.
Forms families commonly need
- BOE-266: Claim for Homeowners’ Property Tax Exemption.
- BOE-19-P: Claim for Reassessment Exclusion for Transfer Between Parent and Child.
- BOE-19-G: Claim for Reassessment Exclusion for Transfer Between Grandparent and Grandchild. Additional eligibility rules apply.
Find the current forms and instructions on the Orange County Assessor forms page. Call the Assessor at (714) 834-3821 about the homeowners’ exemption or (714) 834-2727 for general assessment questions.
What happens if no eligible heir moves in?
The family-home exclusion generally does not apply, and the county may reassess the property to fair market value as of the change in ownership. A long-held home may therefore see a substantial increase. The actual bill depends on the enrolled value, local tax rate, special assessments, and whether another exclusion applies.
Before you rely on a date
- Confirm the legal date of transfer and how title was held.
- Confirm that the home was the transferor’s principal residence.
- Confirm who qualifies as an eligible transferee.
- Ask the Assessor which forms and evidence apply.
- Get advice before one heir moves in, buys out others, or the estate signs a sale agreement.