Property Tax Savings Programs
Home sellers can claim up to $500,000 tax-free when they sell their primary residence if they are over 55, married and have lived in the home at least two years. Single homeowners can claim up to $250,000 tax-free. If your equity gain is more than that, you’ll likely pay capital gains tax on the balance. For specific information, talk to your tax professional.
Click on the "Property Tax Information" link for the cities at right to read information for San Bernardino or Los Angeles counties.
Proposition 60. If you are 55 or older, you can buy or build a new home of equal or lesser current market value within the same county and essentially transfer your original tax base to the new home. This “one time only” tax relief applies only to your principal residence. There are a number of other eligibility requirements, so talk to a tax professional.
Proposition 90. This carries the benefit of Proposition 60 to other counties – if the second county agrees. Only a few California counties do, so again, talk to a tax professional.
Proposition 58 and 193. These measures allow parents and grandparents to transfer property without saddling the child or grandchild with a huge tax increase. Transfers by sale, gift or inheritance are eligible. However, there can be severe tax ramifications for the parents or grandparents, so before you act, consult your attorney before making any changes to the property title.
Property Tax Assistance. Senior (62 or older), blind or disabled homeowners with incomes of $40,811 or less, can apply for a rebate on their taxes.
Property Tax Postponement. Eligible homeowners can opt to postpone paying their property tax until the homeowner dies, sells, or moves from the property. There are several restrictions and interest is added to the property taxes due.