How California Seniors Can Save on Real Estate Taxes

How California Seniors Can Save on Real Estate Taxes

For many California seniors, property taxes can be one of the largest expenses of homeownership — especially after retirement when income often becomes fixed. Fortunately, there are several programs and strategies designed to help seniors reduce or defer their property tax burden while staying in their homes longer.

1. Take Advantage of Proposition 19

Proposition 19, which took effect in 2021, offers one of the most valuable property tax breaks for seniors 55 and older. It allows eligible homeowners to transfer their property tax base to a new home anywhere in California — up to three times in a lifetime.

• Example: If you sell a home assessed at $400,000 and buy a new one for $700,000, your new tax bill will be based on your original assessment plus the difference in price — not the full market value.
  This can save thousands each year.

2. Apply for the Property Tax Postponement (PTP) Program

California’s State Controller’s Office runs the Property Tax Postponement Program, which allows qualifying seniors (age 62 and older), the blind, or the disabled to defer property taxes on their primary residence.

• To qualify, you must meet certain income and equity limits.
• The deferred taxes become a lien on the property and are repaid when the home is sold.

This is an excellent option for seniors on fixed incomes who want to free up cash flow without selling their home.

3. Claim the Homeowners’ Exemption

Every homeowner in California is eligible for the Homeowners’ Exemption, which reduces the taxable value of your primary residence by $7,000. It’s simple to apply through your county assessor’s office and can save about $70 annually.

While modest, every bit helps — and many homeowners forget to file this exemption.

4. Look Into County Senior Tax Relief Programs

Some counties and cities in California offer local senior property tax assistance or additional exemptions. These vary by location, so it’s worth checking with your County Assessor’s Office or Tax Collector for programs that may apply in your area.

5. Consider a Reverse Mortgage for Tax Relief

While not a tax program, a reverse mortgage allows homeowners 62+ to tap into their home’s equity to cover expenses like property taxes without monthly payments. This can be a smart financial tool for some seniors, though it’s important to discuss the pros and cons with a qualified financial advisor.

Toye Martindale is a trusted reverse mortgage expert in San Diego’s North County.

6. Review Your Property Tax Bill for Errors

Assessors occasionally make mistakes. Seniors can appeal their property tax assessment if they believe their property’s value is overstated — which can lead to a lower annual tax bill. Each county provides a simple appeal process and filing deadlines.

Final Thoughts

California seniors have several options to lower or delay their real estate tax burden. Between Proposition 19, tax postponement programs, and local exemptions, you may be able to save thousands — and keep more of your hard-earned money for what truly matters: enjoying your home and retirement.

Steve Cardinalli
Real Estate Professional, 01323509
(760) 814-0248
Steve@Cardinalli.com
www.Cardinalli.com
Century 21 Affiliated Fine Homes & Estates
Village Faire in Carlsbad Village
300 Carlsbad Village Dr, 223
Carlsbad, CA 92008

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