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Taxes and Capital Gains

Will Property Taxes Go Up on an Inherited Home? Prop 19 Explained


Often yes, if you keep the home. Under Proposition 19, a home inherited by a child is generally reassessed to current market value for property-tax purposes, which can sharply raise the annual tax bill compared with the parent's long-held Prop 13 assessment.

The narrow exception

The parent-to-child exclusion now survives only if the child makes the home their own primary residence and files for the exclusion promptly, and even then there is a value cap. If the home is a rental, a second home, or you plan to sell, expect reassessment. For many heirs, this is actually a reason selling makes sense, since holding an inherited home can mean a much larger tax bill. A quick call with the county assessor or a CPA clarifies your number.

General information on California Proposition 19. Not tax advice.

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