Thinking about selling your Irvine home and moving to something easier to maintain, but worried your property taxes will jump? You are not alone. If you qualify under Prop 19, you may be able to carry your current Prop 13 taxable value to your next home and keep your bill low. This guide shows you exactly how the tax math works, what timing rules matter, and how to file in Orange County. Let’s dive in.
Prop 19 in plain English
Prop 19 lets qualifying homeowners transfer their Prop 13 taxable value to a new primary residence anywhere in California. Qualifying groups include age 55 or older, severely and permanently disabled, or victims of wildfire or natural disaster. The State Board of Equalization confirms you can use this up to three times if you qualify due to age or disability.
If your replacement home’s value is equal to or less than your original home’s market value, you can transfer your original taxable value without an increase. If the replacement costs more than the allowed threshold, you add only the difference above that threshold to your old taxable value.
How the tax math works
Step 1: Gather the right numbers
- Original home: your factored base-year value (FBV) from your tax bill, plus your sale price or assessed market value at sale. You can find FBV on the assessed value line. The Orange County Assessor explains FBV in its glossary.
- Replacement home: the purchase price or assessed full cash value, and the dates for both transactions.
Step 2: Know the timing thresholds
The “equal or lesser value” test depends on when you buy relative to your sale date, per BOE guidance:
- Buy before you sell: threshold is 100% of the original home’s market value.
- Buy within 1 year after sale: threshold is 105% of the original home’s market value.
- Buy within 2 years after sale: threshold is 110% of the original home’s market value.
Step 3: Apply the formula
- If replacement value is at or under the threshold, your transferred taxable value equals your original FBV.
- If replacement value is above the threshold, your new taxable value equals your original FBV plus the amount above the threshold.
For a plain-language walkthrough of this formula, see the county example provided by San Luis Obispo’s Assessor here.
Irvine move-down examples
These examples use a simple 1% property tax rate to compare outcomes. California’s base property tax is 1% of assessed value, and voter-approved local charges are added on top, as explained by the BOE here. Your actual bill will vary based on local assessments.
Example A: Replacement is less expensive
- Original Irvine home sells for $1,550,000. Original FBV is $300,000.
- Replacement is purchased for $900,000 within 1 year of the sale.
- Since the replacement is less than the original home’s market value, there is no upward adjustment.
- Transferred taxable value remains $300,000, which is about $3,000 per year at 1%. A full reassessment at $900,000 would be about $9,000 per year. Savings are roughly $6,000 per year, plus any proportional change from local assessments.
Example B: Replacement costs a bit more than the threshold
- Original home sells for $1,550,000. Original FBV is $300,000.
- Replacement is purchased 18 months later for $1,800,000. The second-year threshold is 110% of $1,550,000, or $1,705,000.
- The replacement exceeds the threshold by $95,000.
- New taxable value equals $300,000 plus $95,000, or $395,000. At 1%, that is about $3,950 per year, which is still far below a full reassessment at $1,800,000.
Example C: You buy before you sell
- You buy the replacement on January 1 and sell the original on November 1 of the same year.
- Both events occur within two years, which qualifies. However, taxes on the replacement are enrolled at its full market value until both events have occurred. The transferred value becomes effective as of the later qualifying date.
- File your Prop 19 claim promptly to seek retroactive enrollment where allowed. There is no automatic refund for the period you paid taxes at the full value before your original home sold, per BOE guidance.
Orange County filing steps
Confirm you qualify. You must be 55 or older, severely and permanently disabled, or a wildfire or natural disaster victim. The property must be your principal residence. See BOE’s Prop 19 page for eligibility details.
Gather documents. You will need your tax bill showing FBV, your parcel number, and the sale and purchase prices. The OC Assessor’s glossary explains assessed values and FBV.
File the claim in the county where your replacement home is located. Seniors file BOE‑19‑B, disabled owners file BOE‑19‑D, and disaster victims file BOE‑19‑V. File within 3 years of your replacement purchase or completion of construction to preserve retroactive benefits. The OC Assessor outlines local procedures here.
Plan for timing. If you buy before you sell, expect an interim tax bill at full market value until the sale closes. After both events occur and your claim is approved, the transferred value is enrolled as of the later qualifying date.
Common pitfalls to avoid
- Misreading the timing thresholds. The 100%, 105%, and 110% tests depend on the purchase date relative to your sale date.
- Using the wrong values. The test uses full cash values for the threshold comparison, and your FBV from the tax roll for the transfer.
- Filing late. Claims filed more than 3 years after the replacement purchase may only get prospective relief.
- Cash flow surprises. Buying first can mean higher interim taxes until your sale closes and the transfer is approved.
Quick checklist for Irvine move-down sellers
- Find your FBV on your current tax bill and note your APN.
- Estimate your sale price and your target purchase price, and note expected closing dates.
- Call the OC Assessor to confirm how your numbers would enroll under Prop 19 and which threshold applies. Start with the county’s guidance page here.
- If eligible, plan to file the correct BOE‑19 claim within 3 years of your replacement purchase.
- Talk with a tax advisor or attorney if your situation involves trusts, multiple owners, inherited property, or simultaneous closings.
Ready to plan your move?
If you are weighing a right-size move in Irvine, you deserve a clear plan for both your sale and your tax outcome. Our team will help you price, prepare, and market your home for top-dollar results while coordinating your replacement purchase timeline so your Prop 19 transfer stays on track. Connect with Irene and Ricky Zhang Real Estate Group to map your move and run your Prop 19 numbers.
FAQs
Who qualifies for a Prop 19 base-year value transfer in California?
- Homeowners who are 55 or older, severely and permanently disabled, or victims of wildfire or natural disaster may transfer their taxable value to a replacement primary residence, per the BOE.
Does Prop 19 work if I buy outside Orange County?
- Yes, eligible transfers can be made to a replacement primary residence anywhere in California, according to the BOE.
How many times can a 55+ homeowner use Prop 19?
- Up to three times for those who qualify due to age or disability, as outlined by the BOE.
What if my replacement home costs more than my sold Irvine home?
- If the replacement value exceeds the allowed timing threshold, the excess over the threshold is added to your transferred FBV to create your new taxable value, consistent with the BOE framework.
What happens if I buy the replacement before selling my Irvine home?
- Expect to pay taxes at the replacement’s full market value until the original home sells, then the transferred value can be enrolled as of the later qualifying date; file your claim promptly following BOE guidance.
How do I find my factored base-year value (FBV) for the transfer?
- Your FBV appears on your property tax bill and in the county roll; the OC Assessor explains assessed values and FBV in its glossary.
