Children can inherit their parent’s property without a property tax increase. The executor of the estate should notify the Assessor’s Office promptly to ensure timely processing of an intergenerational exclusion from reappraisal.
The transfer of real property between parents and children or from grandparents to grandchildren can be excluded from reappraisal for property tax purposes. Due to the passing of Proposition 19, which changed the Intergenerational Exclusion rules for properties sold on or after February 16, 2021, the exclusion an applicant may qualify for will depend on when the property was transferred.
If the property transfer occurred before February 16, 2021, the principal place of residence and up to a maximum of $1,000,000 in assessed value of any additional property may be transferred without a tax increase.
If the property transfer occurred on or after February 16, 2021, the exclusion is limited to the first $1,000,000 (this amount is adjusted annually by a factor provided by the State Board of Equalization) of value that would be added upon reassessment of the principal residence. Also, a Homeowners’ Exemption must be filed within one year of transfer, and the property must remain as the primary residence of the applicant to retain the exclusion.
Please refer to the FAQ tab for additional information on the application process.
An application must be filed with the Assessor's Office to determine
eligibility for this exclusion. This application may be sent to you
because of a change in ownership that may cause a reassessment of your
property at current market value. You may qualify for reassessment
exclusion if this transfer of property is between parents and children
or from grandparents to grandchildren.
This is not an automatic exclusion.