Have property taxes kept you from making a move in or to Los Gatos? If you are 55 or older, severely disabled, or rebuilding after a qualifying disaster, California’s Prop 19 can help you transfer a lower tax base to a new primary home. This can make downsizing, relocating to be near family, or swapping neighborhoods more affordable. In this guide, you will learn how Prop 19 works, what to expect for Santa Clara County filings, and simple examples that make the math clear. Let’s dive in.
Prop 19 at a glance in Los Gatos
Prop 19 is a 2020 California constitutional amendment that took effect on April 1, 2021. It expanded the portability of your taxable value, sometimes called your base year value, when you move to a new primary residence. The big change is that you can transfer your taxable value to a replacement home anywhere in California. That shift matters in Los Gatos and Santa Clara County, where market values are often high and tax savings can be meaningful.
What changed statewide
Earlier rules limited intercounty transfers and required specific county agreements. Prop 19 replaced those rules with a statewide system so eligible owners can move across county lines. It also changed parent-to-child and grandparent-to-grandchild exclusions by narrowing when those transfers avoid reassessment. These updates affect inheritance planning and deserve a careful look if you intend to pass property to family.
Who qualifies
You can use Prop 19 portability if you are one of the following:
- Age 55 or older.
- Severely disabled.
- A victim of a wildfire or other qualifying disaster.
The rule applies to your primary residence and a replacement primary residence in any California county.
How taxable value transfers
At its core, Prop 19 lets you move the taxable value from your original home to your next primary home. The county compares the market values of your original and replacement properties at the time of transfer. Your new taxable value depends on that comparison. Here is how it works in simple terms.
When replacement value is equal or less
If your replacement home’s market value is equal to or less than the original home’s market value, you generally carry over your original taxable value. That is why downsizing can create the largest savings. You keep the lower base and benefit from lower property taxes than a new buyer would typically pay. This applies whether you stay in Santa Clara County or move in from another California county.
When replacement value is higher
If your replacement home’s market value is higher than your original home’s market value, the new taxable value equals your original taxable value plus the difference between those two market values. You still often save compared with a full reassessment at the purchase price. The benefit depends on the size of the price gap between the two properties.
Real-world Los Gatos scenarios
These examples use hypothetical numbers to illustrate how the math works. Actual assessments come from the county assessor and your official filing.
Downsizing within Santa Clara County
- Original Los Gatos home: market value $1,500,000; taxable value $500,000.
- Replacement townhome: market value $1,200,000.
- Result: replacement value is less than original. You generally transfer the $500,000 taxable value to the new home. That can significantly reduce your annual tax bill compared with being reassessed at $1,200,000.
Upsizing and still saving
- Original Los Gatos home: market value $1,500,000; taxable value $500,000.
- Replacement home: market value $2,000,000.
- Result: new taxable value equals $500,000 plus the $500,000 difference between $2,000,000 and $1,500,000, which totals $1,000,000. Your taxes are based on $1,000,000 rather than the full $2,000,000 market value.
Moving into Los Gatos from another county
The same formula applies when you move from any California county into Los Gatos. You file your claim with the Santa Clara County Assessor because the replacement home is located in Santa Clara County. The portability calculation follows the statewide Prop 19 rules.
Timing, limits, and intercounty rules
Prop 19 is statewide, so you do not need an agreement between counties to transfer your taxable value. Your claim is filed in the county of the replacement property. If you buy in Los Gatos, you submit to the Santa Clara County Assessor.
Number of transfers
Most eligible owners can use portability up to three times. There are special provisions for victims of wildfire or other qualifying disasters. Because rules and forms can be updated, confirm your personal count and any disaster-related exceptions with the assessor before you move.
Filing county and deadlines
You file your claim where the replacement property is located. Counties have specific procedures, documentation requirements, and timelines. Deadlines can be strict, so loop in the assessor and your escrow team early to stay on track.
Parent-child transfers today
Prop 19 narrowed the parent-to-child and grandparent-to-grandchild reassessment exclusions. Generally, a transfer of the family home to a child can avoid reassessment only if the child uses the home as a principal residence and the value limit calculation is satisfied. Second homes and most other properties no longer qualify the way they did before. If inheritance is part of your plan, speak with a tax advisor or estate attorney to understand how the new rules affect your goals.
Step-by-step: Use Prop 19 for your move
These steps help you prepare for a smooth, tax-efficient transition.
Plan early
- Confirm eligibility based on age, disability, or disaster status.
- Gather the original home’s assessment history and current taxable value from its county assessor.
- Estimate the market values of both properties. Appraisals or a detailed broker price opinion can help because the calculation compares market values.
Who to contact
- Santa Clara County Assessor if your replacement property is in Los Gatos or elsewhere in Santa Clara County. They will guide you to the correct form and timeline.
- The assessor in the county of your replacement property if you are moving out of Santa Clara County.
- Your escrow or title company to coordinate document flow and timely filing.
- A tax professional or estate attorney if you have inheritance or trust questions.
Documents you may need
- Proof of eligibility, such as age or disability documentation, or disaster records when applicable.
- Recorded deeds and escrow statements for the sale of your original home and purchase of your replacement home.
- Evidence of each property’s market value at the time of transfer, such as appraisals.
- The county’s completed Prop 19 portability claim form filed where the replacement home is located.
Common questions
- Can you buy before you sell? Yes. Portability can work whether you buy first or sell first. Timing and paperwork affect your filing, so confirm the deadline with the assessor.
- Does Prop 19 apply to second homes or rentals? No. The rule is for primary residences only.
- Can portability reduce the assessed value below the replacement home’s price? Yes. Especially when downsizing, your transferred taxable base can be well below your new home’s market value.
Make your Los Gatos move smoother
If a lower tax base would open the door to a better-fit home, Prop 19 can help you get there with confidence. Start by confirming eligibility, estimating the value comparison, and coordinating with the Santa Clara County Assessor and your escrow team. With a plan in place, you can rightsize, relocate near family, or change neighborhoods while keeping your property taxes in check.
Ready to model your options and align the sale, purchase, and filing timelines? Connect with Susan LaRagione for local guidance, design-led preparation, and a coordinated move across Silicon Valley.
FAQs
What is Prop 19 portability for Los Gatos homeowners?
- Prop 19 lets eligible owners transfer the taxable value of their original primary residence to a replacement primary residence anywhere in California, which can lower property taxes after a move.
Who qualifies for Prop 19 in Santa Clara County?
- Homeowners who are age 55 or older, severely disabled, or victims of a qualifying wildfire or disaster can use portability for a primary residence move.
How does the Prop 19 calculation work when buying in Los Gatos?
- If the replacement home’s market value is equal to or less than your original home’s value, you keep your original taxable value; if it is higher, you add the difference in market values to your original taxable value.
Can I buy before I sell and still use Prop 19?
- Yes, buying first or selling first can both qualify, but you must meet county filing deadlines and provide the required documents to the assessor.
How many times can I use Prop 19 portability?
- Most eligible owners can transfer their taxable value up to three times, with special provisions for certain disaster situations; confirm your status with the assessor.
Does Prop 19 cover second homes or rentals in Los Gatos?
- No, Prop 19 portability is designed for your primary residence only, not for vacation homes or investment properties.