Trying to sell in Redwood City and wondering how Prop 19 affects your next move or a family transfer? You are not alone. California’s rules changed in 2021, and they can either save you a lot on property taxes or surprise you if you do not plan ahead. In this quick guide, you will see what Prop 19 means for Redwood City sellers, how to use it when you move, and what to know before transferring a home to a child. Let’s dive in.
What Prop 19 changed
Prop 19 did two big things for homeowners across San Mateo County.
- Base-year transfers when you move: If you are 55 or older, severely disabled, or a victim of a wildfire or other natural disaster, you may transfer your existing assessed value to a replacement primary home anywhere in California, up to three times, subject to timing and filing rules. This replaced and expanded older rules. See the state overview on the Board of Equalization’s Prop 19 page.
- Intergenerational transfers: Parent to child (and certain grandparent to grandchild) exclusions became much narrower. To keep a low assessed value, the child must make the property their principal residence, and there is a value cap that can limit the exclusion. San Mateo County summarizes these changes on its Proposition 19 page.
Who this helps in Redwood City
If you are selling a Redwood City primary home and you are 55 or older, severely disabled, or you suffered a loss due to a declared disaster, Prop 19 can let you take your tax base with you. You can use it up to three times if you qualify, which is useful for downsizing or relocating within the Peninsula or anywhere in California. The claim is filed with the assessor where the replacement property is located, not in escrow, and only after you move in. The state provides the core rules on the BOE Prop 19 site.
If you are thinking about giving or leaving a Redwood City property to a child, Prop 19 now limits when the low tax base can follow. The child must make it their principal residence, and the exclusion is capped. San Mateo County explains the updated rules on its page on parent and child transfer changes.
How a base-year transfer works
Here are the key mechanics if you qualify and plan to move:
- Eligibility: Age 55 or older at the time of sale, severely and permanently disabled, or a victim of a wildfire or other governor-declared natural disaster. The basics are covered in this county explainer on base-year value transfers.
- Timing: Buy or build your replacement within two years before or after you sell the original home. One of the two transactions must occur on or after April 1, 2021. You must occupy the replacement as your principal residence. See the timing rules on the BOE Prop 19 page.
- Value adjustment: If your replacement costs more, the difference is added to your transferred base. If it costs the same or less, your factored base-year value transfers without an upward adjustment. This formula is outlined in the SLO County explainer.
- Filing: You file with the assessor in the county where the replacement home is located, after you move in. Escrow does not do this for you. Claims filed within three years can receive retroactive relief. The BOE provides forms and checklists on its Base Year Value Transfer page.
Example: Buying a higher-priced replacement
Example for illustration: You sell your Redwood City home and your current assessed value is $450,000. You buy a replacement primary home for $1,500,000, and the home you sold had a market value of $1,200,000. The $300,000 difference between the two market values is added to your transferred base, so your new assessed value would be $450,000 + $300,000 = $750,000. This mirrors the approach described in the SLO County example.
Parent-child transfers today
For transfers on or after February 16, 2021, a child can keep some or all of the prior assessed value only if the property is the family home or family farm and the child makes it their principal residence. There is also a cap that limits how much value is excluded from reassessment. The state updated the indexed allowance to $1,044,586 for transfers occurring from February 16, 2025 through February 15, 2027, as noted in the BOE press release. Helpful local detail appears on San Mateo County’s page on Prop 19 transfer changes.
Example: Gifting a Redwood City rental to a child
If you gift a rental or second home to your child, it generally does not qualify for the exclusion because the property is not the child’s new principal residence. The county will usually reassess to current market value, which can significantly raise the property tax bill. San Mateo County explains the change and limits on the Prop 19 overview page.
What to do next: a simple checklist
- Confirm eligibility
- Are you 55 or older, severely disabled, or a disaster victim? If yes, you may be eligible for a base-year transfer. Review the basics on the BOE Prop 19 page.
- Plan your timing
- Buy or build within two years before or after your sale, and occupy the replacement as your principal residence. See timing guidance on the BOE Prop 19 page.
- File after you move in
- Escrow will not complete the transfer. You must file a claim with the assessor where the replacement home is located. Use the state’s BOE forms and checklist.
- Gather documents
- Be ready with proof of age or disability if applicable, closing statements or recorded deeds for both transactions, proof of residency at the replacement, and your prior tax bill. The state lists typical items on the BOE forms page.
- Mind the deadlines
- For base-year transfers, filing within three years can allow retroactive relief. For parent-child claims, follow BOE deadlines and instructions on the BOE Prop 19 page.
- Contact the San Mateo County Assessor
- For local forms, processing times, and questions, reach the San Mateo County Assessor at (650) 363-4500, [email protected], or visit the office at 555 County Center, 1st Floor, Redwood City. You can also use the Assessor’s contact page.
- Consult trusted pros
- For trusts, multi-heir plans, or large value differences, speak with a tax advisor or estate planning attorney. San Mateo County notes that official pages are summaries only on its Prop 19 page.
Local snapshot: usage in San Mateo County
Prop 19 is active but not universal. San Mateo County reported 244 base-year transfers in the 2023 assessment roll, with about half coming from outside the county. This shows steady usage without overstating the effect on the overall market. See the county’s assessment roll update.
Ready to map your next step with confidence and discretion? If you are selling in Redwood City or planning a family transfer, a clear plan can protect your long-term goals. Reach out to Panos Anagnostou for a private conversation about timing, preparation, and how to align your move with Prop 19.
FAQs
How Prop 19 helps a Redwood City seller over 55
- If you are 55 or older and sell your primary home, you may transfer your assessed value to a replacement primary home anywhere in California up to three times, subject to timing, occupancy, and filing rules, as summarized on the BOE Prop 19 page.
Filing a base-year transfer in San Mateo County
- You must file a claim with the county where the replacement property is located after you move in; escrow does not handle it. Find forms and checklists on the BOE forms page and local contact options on the San Mateo County Assessor page.
Parent-to-child transfers of a Redwood City home
- To keep a low assessed value, the child must make the property their principal residence and the exclusion is limited by a dollar cap. San Mateo County outlines the rules on its page on Prop 19 transfer changes.
Current cap for intergenerational exclusions in California
- For transfers from February 16, 2025 through February 15, 2027, the indexed allowance is $1,044,586, according to the BOE press release.
Deadline for parent-child claim forms in San Mateo County
- The BOE describes filing windows and special timelines for supplemental or escape assessments on its Prop 19 page; timely filing helps secure the fullest relief allowed by law.
