2026-10-22 · 4 min read · Orange County
What Happens to My Prop 13 Tax Base if I Move Out of California?
The short answer
Your Prop 13 tax base stays with the property, not with you. If you sell, the buyer's taxes are reset to market value and your base ends with the sale. Prop 19 lets eligible homeowners move their tax base to a new home, yet only to a replacement home in California, so it does not follow you to another state. If you keep the home and rent it out, the base usually stays in place, and you lose the homeowners' exemption. Talk with a CPA or attorney about your family's plan.
What Is My Prop 13 Tax Base?
What happens to your Prop 13 tax base if you move out of California from Orange County? The short version is that the base belongs to the property. It stays in place as long as you own the home, and it resets when the home changes ownership.
I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. Moving out of state is a big life transition, and the tax base is one of the first questions families ask me about.
The Orange County Assessor explains that Prop 13 sets a base year value when you buy and limits yearly increases in taxable value to an inflation rate of no more than 2%, plus any new construction. That is why longtime owners often have a much lower taxable value than recent buyers.
This is general information, not tax or legal advice. A CPA or estate planning attorney can speak to your situation.
What Happens if I Sell and Move to Another State?
When you sell, the Assessor revalues the home for the buyer. The Orange County Assessor says property that changes ownership is valued at full market value as of the date of the change, with yearly increases of no more than 2% after that.
So your low base ends at the sale. It does not travel with you to another state. Your new state's property tax rules take over there.
Can I Use Prop 19 to Take My Tax Base With Me?
Not out of state. Prop 19 lets homeowners who are 55 or older, severely disabled, or victims of a wildfire or natural disaster transfer their tax base to a replacement home. The State Board of Equalization lists the location as anywhere in California.
The Board of Equalization also says:
- Up to three transfers for eligible homeowners age 55 or older.
- A two-year window. The replacement is bought within two years before or after the sale of the original home.
- Value adjustments. If the new home costs more, part of the difference may be added to the transferred value.
If you're leaving the state entirely, Prop 19 won't carry your base with you.
What if I Keep the House and Rent It Out?
Keeping the home is not a change in ownership, so your base year value generally stays in place. Your taxable value continues to rise by no more than 2% a year, as the Assessor describes.
What changes is the homeowners' exemption. The Orange County Assessor says the exemption is for a home that is your principal residence on January 1, and it reduces the assessed value by $7,000. The Assessor's FAQ says if you move out and rent the home, you are no longer eligible and must cancel the exemption.
The Assessor says you can cancel it in writing or with the termination form included with your tax bill. A notice by December 10 ends it without penalty.
Being a landlord from another state also means management, repairs and taxes on rental income.
What Happens if I Leave the Home to My Children?
Many families ask whether the kids can keep the low tax base. Prop 19 changed this. The Board of Equalization says a parent-to-child transfer of a family home can keep the base only if the home becomes the child's principal residence, and at least one eligible child keeps living there.
The Board of Equalization also sets a value limit. It lists the adjusted limit amount as $1,044,586 for transfers from February 16, 2025 to February 15, 2027, and value above the limit is added to the taxable value. Ask the Assessor how it applies to your home.
If the kids won't live in the home, it is generally reassessed. For more, see how do I sell a house in a trust in California.
How Should We Plan Before I Move?
A few steps help your family decide:
- Look up your current taxable value on your property tax bill.
- Get a market value estimate so you can compare selling now with renting.
- Ask a CPA about taxes on a sale, on rental income, and on a future sale.
- Talk with an estate planning attorney if you want to leave the home to your children.
- Plan the timeline around your move, so the home isn't left empty and unmanaged.
Let's Start With a Private Planning Conversation
If you're thinking about moving out of California, I'd be glad to have a private planning conversation with your family about your options for the home, with a clear look at its value today. Call or text me at 714.366.8575 | DRE: 01397168, or contact me. Jeanette Nelson is a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas.
Frequently asked questions
Does my Prop 13 base follow me if I move out of state?
No. The base belongs to the property. Prop 19 transfers are only to a replacement home in California, according to the State Board of Equalization.
Will my taxes go up if I rent out my Orange County home?
Renting it out does not reset the base by itself. You do lose the $7,000 homeowners' exemption, which the Assessor says applies only to your principal residence.
Can my kids keep my low property tax base?
Only in limited cases. Under Prop 19, the home must become the child's principal residence, and a value limit applies. Otherwise it is generally reassessed.
Do I have to tell the Assessor when I move?
Yes, if you have the homeowners' exemption. The Orange County Assessor asks owners to cancel it when the home is no longer their principal residence.