Why property taxes can change after a death
In California, a home's property tax is based on its assessed value — the value the County Assessor uses to calculate the tax. That value usually stays close to the purchase price and rises only slowly each year. If a parent owned a home for many years, its assessed value may be far below what the home would sell for today.
When ownership changes, the home is normally reassessed — its assessed value is reset to current market value. A death is a change in ownership. Before 2021, children could often keep a parent's low assessed value on almost any home. Proposition 19 narrowed that.
What Prop 19 changed
Since February 16, 2021, Proposition 19 limits the parent-to-child exclusion from reassessment. It also covers grandparent-to-grandchild transfers when the grandchild's parents are deceased. The exclusion now applies only to a home that was the parent's principal residence (their main home) and that becomes the child's principal residence too. Family farms also qualify under the same conditions.
Moving in: the principal-residence rule
To keep the parent's lower assessed value, the child must actually make the home their main residence. The child must file for the homeowners' exemption (or the disabled veterans' exemption) within 1 year of the death to get the exclusion from the date of death. If they file later, the exclusion applies only going forward — not back to the date of death.
If more than one child inherits, talk with the assessor's office and an attorney about how the rule applies when only one of you moves in.
The value limit
Even when a child moves in, the benefit is capped. If the home's market value is more than the parent's assessed value plus $1,044,586, the amount above that is added to the taxable value. That figure is the limit for February 16, 2025 to February 15, 2027, and it's adjusted every two years.
In plain terms: for many homes the child keeps the parent's low assessment entirely. For higher-value homes, part of the value is reassessed and the tax goes up, but not all the way to market.
Rentals, second homes and homes no one moves into
If no heir makes the house their principal residence — for example, if it becomes a rental, a vacation home, or sits empty until it's sold — it's reassessed to market value as of the date of death. That's an important factor when deciding whether to keep, rent or sell.
Deadlines and forms
- Change in Ownership Statement (Death of Real Property Owner, BOE-502-D) — due to the County Assessor within 150 days of the death.
- Homeowners' exemption (or disabled veterans' exemption) — file within 1 year of the death to get the exclusion from the date of death.
- Claim for the parent-child exclusion — file with the County Assessor within 3 years of the death, or before the home is transferred to a third party, whichever is earlier.
Each county assessor has its own office and website. See Southern California counties for where to file in each county.
What this means for your decision
Prop 19 often tips the balance. If someone in the family truly wants to live in the home, the property tax may stay manageable. If no one does, the tax will usually rise to reflect today's value, which affects whether renting makes sense. Many families talk with a tax professional and a real estate agent before deciding.
Source: California State Board of Equalization, Proposition 19 (boe.ca.gov/prop19).