For many long-time California homeowners, property taxes are one of the biggest obstacles when considering whether to sell and relocate. After decades of ownership, many seniors enjoy extremely low property tax bills thanks to Proposition 13. This legislation has been a boon for older homeowners, providing them with a sense of financial security and stability.

However, the fear of losing that benefit often keeps these homeowners stuck in houses that no longer fit their lifestyle. For instance, many retirees find themselves in large homes that require significant maintenance, while they would prefer a smaller, more manageable space.

The challenge of moving is compounded by the potential increase in property taxes that comes with purchasing a new home in the same or different area. This is particularly concerning for those on fixed incomes who may not be able to afford higher tax rates.

Understanding the implications of Proposition 13 is crucial. Under this law, property tax assessments are limited to an increase of no more than 2% per year, which means that homeowners who have lived in their properties for many years can enjoy significantly lower tax bills compared to new buyers.

Furthermore, when contemplating a move, it’s essential to explore options such as transferring the low tax base to a new property, which is available under certain circumstances through Proposition 60 and Proposition 90. These propositions allow eligible homeowners to transfer their existing property tax assessments when purchasing a new home in a different county or within the same county, thus preserving their low property tax.

This can be particularly advantageous for California homeowners 55 keep low property taxes when relocating. Therefore, understanding these tax benefits and how to utilize them effectively can empower seniors to make informed decisions about their living situations and allow them to relocate to more suitable homes without the burden of increased taxes.