Advanced Prop 13 Scenario Calculator — Hold vs Sell vs Move

Compare three scenarios side-by-side: hold your current property, sell it outright, or sell and move to a new home. See the full tax impact of each decision.

Enter your current property details and your potential new property details.

Current Property

Current Market Value

Adjusted Cost Basis

Current Prop 13 Assessed Value

Current Annual Property Tax

Is this your primary residence?

Filing Status

New Property (for Move Scenario)

New Property Purchase Price

Your Age

County Tax Rate

Other Household Income

Your Three-Scenario Comparison

Hold vs. Sell vs. Move — full tax impact of each decision

Scenario A: Hold

Annual Property Tax—

Capital Gains Tax Now$0

Unrealized Gain—

5-Year Property Tax Cost—

Recommendation—

Scenario B: Sell

Capital Gains Tax—

Primary Residence Exclusion—

Net Tax After Exclusion—

Net Proceeds After Tax—

Recommendation—

Scenario C: Move

Capital Gains Tax on Sale—

New Property Tax (Prop 19)—

Prop 19 Transfer Eligible—

New Annual Tax (if transfer)—

Recommendation—

Analysis Summary

Key Prop 19 Rules (Effective Feb 2021)

Age 55+ Transfer: Homeowners 55 or older can transfer their Prop 13 base year value to a replacement home of any value, anywhere in California. If the new home costs more, the difference is added to the transferred base. Available up to three times in your lifetime.
Severely Disabled Transfer: Severely disabled homeowners can also transfer their base year value regardless of age.
Parent-Child Transfer: Under Prop 19, parent-child transfers of a primary residence are only excluded from reassessment if the child uses it as their primary residence within one year. The exclusion is capped at $1M above the assessed value.
Primary Residence Exclusion: Federal law excludes up to $250,000 ($500,000 MFJ) of capital gains on a primary residence if you have lived there 2 of the last 5 years. California conforms to this exclusion.
Investment Property: No primary residence exclusion applies. Consider a 1031 exchange to defer all capital gains tax.

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The Hold vs. Sell vs. Move Decision in California

For California homeowners with significant Prop 13 protection, the decision to hold, sell, or move is one of the most financially complex decisions they face. The tax implications of each choice can differ by hundreds of thousands of dollars — and the right answer depends on your specific situation, age, income, and plans for the proceeds.

The "Golden Handcuffs" of Prop 13

Many California homeowners feel trapped by their Prop 13 protection. Selling means losing a low property tax base and potentially paying enormous capital gains tax. Moving means starting over with a new assessed value. Prop 19 (effective February 2021) partially addresses this by allowing homeowners 55+ to transfer their Prop 13 base to a new home anywhere in California.

Prop 19 Base Year Value Transfer

Under Prop 19, if you are 55 or older, severely disabled, or a victim of a wildfire or natural disaster, you can transfer your current Prop 13 assessed value to a replacement home of any value, anywhere in California. If the new home costs more than the current assessed value of your old home, the difference is added to the transferred base. This benefit is available up to three times in your lifetime.

Frequently Asked Questions

Q: What is the primary residence exclusion?
A: Federal law (IRC Section 121) excludes up to $250,000 ($500,000 for MFJ) of capital gains from the sale of a primary residence if you have owned and lived in the home for at least 2 of the last 5 years. California conforms to this exclusion.

Q: Can I transfer my Prop 13 base to my children?
A: Under Prop 19, parent-child transfers of a primary residence are excluded from reassessment only if the child uses the home as their primary residence within one year. The exclusion is capped at $1M above the current assessed value. Investment properties no longer qualify for the parent-child exclusion.

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Advanced Prop 13 Scenario Calculator — Hold vs Sell vs Move