If you're a homeowner in Orange County considering selling your home and buying another property within California, Proposition 19 (Prop 19) could offer significant savings on your property taxes. Prop 19, passed in November 2020, provides new opportunities for certain homeowners to transfer their existing property tax base to a new home, potentially saving thousands of dollars annually. In this blog post, we'll explore how Prop 19 works and how it can benefit homeowners in communities like Laguna Niguel, Mission Viejo, Dana Point, and other areas across Orange County.
Proposition 19 is a California law that allows eligible homeowners to transfer the tax base of their current home to a new one, even if the new home is more expensive or located in a different county. This can result in significant property tax savings for those who qualify.
Click here to view the California Prop 19 Fact Sheet [PDF]
To take advantage of Prop 19's tax savings, homeowners must meet one of the following criteria:
For homeowners in Orange County, this means that if you sell your home in Laguna Hills or Newport Beach, for example, and purchase a new home anywhere in California, you can transfer the low property tax base from your original home to the new one. This is especially beneficial given the high property values in Southern California, where moving to a new home could otherwise result in significantly higher property taxes.
Under Prop 19, if the replacement home is of equal or lesser value than the original home, you can transfer your current property tax base without any increase. However, if the new home is more expensive, you’ll only pay additional taxes on the difference between the sale price of your old home and the purchase price of your new one. For example:
Prop 19 offers several key benefits that make it easier for homeowners to move without facing prohibitive property tax increases. This is particularly important for those looking to downsize, relocate closer to family, or retire in Laguna Woods or another 55+ community, while staying within California’s competitive real estate market.
Before Prop 19, homeowners could only transfer their tax base within certain counties and under very specific conditions. Now, thanks to Prop 19, eligible homeowners can move anywhere within California—whether it's from Laguna Niguel to San Diego or from Aliso Viejo to Sacramento—while keeping their lower property tax rate intact. For seniors looking to downsize or move closer to family members without facing steep tax hikes, this flexibility is invaluable. It opens up more housing options across the state while still allowing them to maintain financial stability.
Orange County's real estate market is known for its high property values. If you're upgrading homes—perhaps moving from Mission Viejo to a larger home in Laguna Beach—Prop 19 allows you to transfer your existing tax base and only pay additional taxes on the price difference between your old and new homes. This blended tax rate makes it possible for homeowners to upgrade without facing unaffordable property tax bills.
Prop 19 also increases mobility by allowing eligible homeowners to transfer their property tax base up to three times during their lifetime (previously only once). This means that if you decide to move again later—perhaps from San Clemente to another part of Orange County—you can continue enjoying these property tax benefits.
If you're considering selling your home in Orange County and buying another within the state, working with experienced real estate professionals who understand Prop 19 is essential. The Brad Feldman Group specializes in helping homeowners navigate complex real estate transactions while maximizing their financial benefits under laws like Prop 19.
Navigating Proposition 19’s rules can be tricky without expert advice. The OC Register reports that only 56% of Prop 19 applications were approved statewide, meaning that nearly half did not meet the requirements. For example:
Our team at Brad Feldman Group—recognized as top Orange County real estate agents—can guide you through these steps seamlessly while helping you find the perfect home that fits your needs and budget.
For more information about our services or current listings in sought-after Orange County neighborhoods like Nellie Gail Ranch, check out our portfolio page.
Proposition 19 is a great opportunity for eligible homeowners in Orange County to save thousands on their property taxes when selling and buying a new home within California.
A quick note about the Brad Feldman Group: As a team of top OC Realtors, when you need help buying or selling a home in Orange County, we’re who you call! However, for complex tax matters, always consult with a qualified attorney or tax professional. We’re happy to help connect you with any resources you need.
If you're ready to explore selling and buying a home in Orange County and how Prop 19 can benefit you, reach out to our team of specialists at Brad Feldman Group today. We’ll help answer any questions and create a personalized plan toward your real estate goals.
If you are thinking of selling, or just curious about your property value in today’s market, visit our free home valuation page. We look forward to speaking with you. Contact us here.
