Persons 55+ Tax base transfer
California offers Seniors the Property Tax Postponement Program as well as the Intra-County/Inter-County transfer for persons over the age of 55 when they sell an existing home and buy or build another of equal or lesser value.
Property Tax Postponement Program
California's Property Tax Postponement Program allows senior citizens and disabled persons with an annual household income of $35,500 or less to apply to defer payment of property taxes on their principal residence. Please visit the State Controller's website for applications and more information regarding this program.
Learn more about tax saving programs and benefits available to you on the California State Board of Equalization's Tax Tips for California Seniors website.
Intra-County (Proposition 60)/Inter-County (Proposition 90)
In a market where real estate values are increasing, the purchase of a home increases both your tax base and your property tax payments. This makes it financially difficult for older citizens to purchase or construct a home better suited to their changing needs. To assist homeowners 55 years of age or older in this situation, the voters of California passed Propositions 60 and 90.
If you meet the eligibility requirements, you may transfer your home’s current Proposition 13 value (base year value) to a different home. In other words, you may be able to pay a similar amount in property taxes if you change your residence. Keep in mind that your tax bill may also be affected by other charges for items such as sewer, water, lighting, and bonds.
About Base Year Values
Proposition 13 brought the concept of base year values to the property tax system. When you purchase or construct a home a base year value is established. The base year value is set to the current market value of your property.
The base year value is adjusted each year for inflation, and is limited to a 2% maximum increase per year. This adjusted value is called the ‘factored’ base year value or Proposition 13 value. The Proposition 13 value is the amount used to calculate your tax bill.
Options for Transferring Your Tax Base
- Proposition 60 Intra-County Transfer - Qualified applicants may transfer their home’s current Proposition 13 value (base year value) to a home within the same county.
- Proposition 90 Inter-County Transfer - Qualified applicants may transfer their home’s current Proposition 13 value (base year value) to a home in a California county that has adopted an Inter-County Base Year Value Transfer Ordinance.
Important: Placer County has not adopted an Inter-County Base Year Value Transfer Ordinance and does not accept transfers of base year value from other counties.
This is a one-time benefit. Once you have been approved, neither you nor your spouse can receive this benefit again unless you become severely and permanently disabled.
You may also qualify to transfer your base year value in other situations. Please review our information on Disabled Base Year Value Transfer, Eminent Domain or other Government Acquisition (PDF), or Environmentally Contaminated property (PDF). This benefit is open to property owners 55 years of age or older who sell their primary residence and meet all eligibility requirements. If you are married, only one spouse needs to be over 55.
You must meet all of the following conditions to qualify:
- The original property must be subject to re-assessment at its current market value in accordance with the Revenue and Taxation Code 110.1.
- Both the original property and replacement dwelling must have been eligible for the Homeowners’ Exemption or entitled to the Disabled Veterans’ Exemption.
- The replacement dwelling must be purchased or newly constructed within two years (before or after) of the sale of the original property.
- The market value of your replacement dwelling must be equal to or less than the market value of your original home.
- An application for tax relief must be filed within three years of the date a replacement dwelling is purchased or new construction of a replacement dwelling is completed. Applications filed after 3 years will be granted prospective relief beginning in the calendar year you file your application.
Definition of Equal to or Lessor in Value
"Equal to or lesser in value" has been defined as:
- 100 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased before the original property is sold;
- 105 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased within one year after the original property is sold; or
- 110 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased between one and two years after the original property is sold.
To apply for this benefit, choose from the following options:
- Proposition 60 Intra-County Transfer - Please complete and return the Transfer of Base-Year Value to Replacement Dwelling (BOE-60-AH) form (PDF) to our office.
- Proposition 90 Inter-County Transfer - Please contact a county that has adopted an Inter-County Base Year Value Transfer Ordinance and request a copy of their application.