Understanding Property Tax Reassessment in California: What Homeowners Need to Know
Avoid Surprises When Changing Title Ownership
In California, changing ownership of real property can trigger a reassessment of your home’s value — and that can mean higher property taxes. However, not all transfers result in reassessment. Knowing the difference can help you preserve your current tax base and avoid unexpected costs.
✅ These ownership changes are generally exempt from reassessment, provided the proper documentation is filed:
- Adding a Spouse to title
- Removing a Spouse due to divorce or death
- Adding a Child to the title when the home is your primary residence — This falls under the Parent-Child Exclusion. Be sure to file the required exclusion forms.
- Adding a Grandchild to title only if the child’s parent (your child) is deceased — This qualifies under the Grandparent-Grandchild Exclusion (PCOR required).
- Transferring Property to a Revocable Trust — As long as the original owner retains 100% interest, no reassessment applies.
⚠️ The following ownership changes may result in a reassessment of your property and a potential tax increase:
- Adding a Child to title if the property is NOT your primary residence
- Adding a Grandchild to title if the child’s parent is still living — No exclusion applies
- Removing a Child or Grandchild from title if transferring to a non-family member
- Adding a non-family member to title
- Removing a co-owner from title if an unrelated party
- Removing a property from a Trust if not an exempt transfer
🔍 Prop 19 & Family Transfers: What’s Changed?
Under Proposition 19, certain parent-child and grandparent-grandchild transfers may still qualify for reassessment exclusion, but the rules are more limited than in the past.
You may qualify for exclusion if:
- The transfer is for a primary residence
- The child or grandchild files a Claim for Reassessment Exclusion within the required timeline
- For grandparent-to-grandchild transfers, the child’s parent must be deceased at the time of the transfer for the exclusion to apply.
Final Thoughts
Transferring ownership — even within a family — isn’t always as simple as it sounds when it comes to property taxes. The key is to understand how California views these changes and to file the correct exclusion forms when eligible. If you're unsure, consult with a qualified estate attorney or tax professional to help protect your property’s assessed value.
Have questions about how this applies to your home or upcoming transaction? I’m happy to help you navigate the real estate side of things.
