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Relocating or Downsizing in California: Keep Your Tax Base and Move on Your Terms

By Bilal Salimi, Broker, DRE# 01480904 · NMLS# 300923 · Updated October 28, 2026

If you or your spouse are 55 or older, Prop 19 lets you move your current property tax base to a new home anywhere in California, up to three times. You can also buy your next home before selling using bridge financing or a HELOC, or, at 62+, use a reverse mortgage for purchase to buy with no monthly mortgage payment.

Your options

Sell, then buy, using Prop 19 (55+)

Best when: You've owned for years and your property tax base is far below today's value.

Pros

Keep your old taxable value on the new home
Works anywhere in California, up to 3 times
Replacement can be worth up to 105% (bought within year 1 after the sale) or 110% (year 2) of the old home's market value; any excess is added to the base

Watch out for

Buy or build within 2 years before or after selling
File the claim (BOE-19-B) within 3 years with the county assessor where the new home is

Buy first, then sell

Best when: You want to move once, without renting in between.

Pros

No rush to find a place after selling
Under Prop 19, a replacement bought before the sale qualifies if it is worth no more than the home you sell

Watch out for

Carrying two homes for a while
Bridge loans and HELOCs depend on your equity and qualifying

Reverse mortgage for purchase (HECM, 62+)

Best when: You want to downsize and stop making mortgage payments.

Pros

Buy the new home with a large down payment and no required monthly mortgage payment
The 2026 HECM maximum claim amount is $1,249,125

Watch out for

You must keep paying property taxes, insurance and upkeep
HUD-approved counseling is required, and costs are higher than a regular loan

Relocating for work: rent it out instead

Best when: You may come back, or the rent covers your costs.

Pros

Keeps the home and your low Prop 13 base
You can still use the home-sale tax exclusion if you sell within 3 years of moving out (2 of 5 years rule)

Watch out for

Local rent and eviction rules apply once a tenant moves in
Managing from a distance

Prop 19 base-year transfer at a glance (55+, disabled or disaster victims)

Both homes must be your principal residence and qualify for the homeowners' exemption. Homes owned by a business entity don't qualify. The same rules apply to severely disabled homeowners (form BOE-19-D) and victims of wildfires or declared disasters (BOE-19-V).

When you buy the replacement	Full transfer if the replacement's value is up to	If it costs more
Before you sell the original	100% of the original's market value	The difference is added to your tax base
Within 1 year after selling	105%	The difference is added to your tax base
Within 2 years after selling	110%	The difference is added to your tax base

Behind on property taxes?

In Alameda County, unpaid taxes become "tax-defaulted" after June 30, with redemption penalties of 1.5% a month. The county gains the power to sell a home after 5 years of default, but you can redeem until the business day before the sale, or start a 5-year installment plan before the fifth year (20% down plus a $75 fee). A sale, refinance or reverse mortgage can also pay off back taxes. Alameda County Tax Collector: (510) 272-6800.

How I help

I map out the whole move: what your home will sell for, what you can buy under Prop 19 without raising your tax base, and how to bridge the timing. SI MTG can arrange bridge financing, a HELOC or a HECM for purchase. And because I work from the Bay Area to Tracy, Mountain House and Sacramento, I can help on both ends of a move within California. Try the Prop 19 base-year transfer calculator.

Frequently asked questions

Can I transfer my property tax base to a new home in California?

Yes, if you are 55 or older, severely disabled, or a disaster victim. Under Prop 19, you can transfer your taxable value to a replacement home anywhere in California, up to three times, if you buy within two years before or after selling.

What if my new home costs more than my old one under Prop 19?

You still get a partial benefit. The difference between the new home's value and the allowed limit (100%, 105% or 110% of the old home's value, depending on timing) is added to your transferred tax base.

How long do I have to file for Prop 19?

Within 3 years of buying the replacement, with the assessor in the county where the new home is. Late claims are accepted but only apply going forward.

What is the reverse mortgage limit for 2026?

The HECM maximum claim amount is $1,249,125 for FHA case numbers assigned on or after January 1, 2026. Borrowers must be 62 or older, live in the home, and complete HUD-approved counseling.

Can I buy a house with a reverse mortgage?

Yes. A HECM for Purchase lets a buyer 62 or older buy a new principal residence by paying the difference in cash, with no required monthly mortgage payment. Property taxes, insurance and upkeep still must be paid.

Planning a move? Get a Prop 19 and net proceeds plan for your next home.
A confidential, no-pressure conversation about your options. Book a free consultation, call (510) 786-8739, or get a free home value evaluation.

Other homeowner situations

Sources

This page is general information, not legal or tax advice. Confirm Prop 19 eligibility with your county assessor and tax questions with a CPA. Reverse mortgages require HUD-approved counseling. Visionary Estates · 44840 S Grimmer Blvd, Fremont, CA 94538 · DRE# 01480904 · CA Insurance Lic. #0F85254. Loans arranged through SI MTG, the mortgage division of Salimi Investments, NMLS# 300923 (a broker, not a lender).