Prop 58 in California: The Parent-Child Exclusion, Before and After Proposition 19
From 1986 to 2021 Proposition 58 let California parents pass real property to their children without a reassessment: the family home at any value, plus a million dollars of assessed value in anything else. Proposition 193 added grandchildren whose parents had died. Both are written into Revenue and Taxation Code §63.1, and both still govern transfers made before February 16, 2021. For everything since, Proposition 19's §63.2 applies, and it is far narrower. Because the old name is still what most people search for, this page sets the two rules side by side, with the forms and deadlines for each.
Quick answer
Prop 58 / 193 (§63.1), transfers before February 16, 2021: the parent's principal residence excluded at any value, plus $1 million of assessed value of other property, no residency requirement for the child. Prop 19 (§63.2), transfers on or after February 16, 2021: only a family home the child moves into within a year, excluded up to the old assessed value plus $1,044,586 (through February 15, 2027); everything else is reassessed. Claims: BOE-58-AH for the old rule, BOE-19-P for the new, within three years.
Side by side
| Prop 58 / Prop 193 (§63.1) | Prop 19 (§63.2) | |
|---|---|---|
| Statute | Revenue and Taxation Code §63.1 | Revenue and Taxation Code §63.2 |
| Constitutional basis | Cal. Const. art. XIII A §2(h) (Prop 58, 1986; Prop 193, 1996) | Cal. Const. art. XIII A §2.1(c)–(d) (Prop 19, November 2020) |
| Transfers | Before February 16, 2021 (including deaths before that date) | On or after February 16, 2021 |
| Principal residence | Excluded without limit on value; no requirement that the child live there | Excluded only if it becomes the child's principal residence within one year, with the Homeowners' or Disabled Veterans' Exemption claimed; excluded value = parent's factored base-year value + allowance ($1,044,586 for 2025-27); the excess is added |
| Other real property (rentals, second homes, land) | First $1,000,000 of assessed value per transferor excluded | Not excluded; reassessed at market value (family farms excepted) |
| Direction | Parent to child and child to parent | Parent to child and child to parent |
| Grandparents | Prop 193: to grandchildren whose parents (children of the grandparent) are all deceased | Same deceased-parent condition, subject to the family-home rules |
| Claim form | BOE-58-AH; BOE-58-G (grandparents) | BOE-19-P; BOE-19-G (grandparents) |
| Deadline | Three years, or before a further transfer; six months after a supplemental or escape notice; later claims prospective | Three years, or before a transfer to a third party or the child ceasing to occupy the home, whichever is earlier; six months after a supplemental or escape notice; later claims prospective (§63.2(f)) |
How §63.1 worked
§63.1 provided that a “change in ownership” did not include the purchase or transfer of a principal residence between parents and their children, or of the first $1,000,000 of full cash value of all other real property between them, whether by sale, gift or inheritance. The $1 million was per transferor, so two parents could pass $2 million of assessed value in rentals or land, and it was measured by assessed (factored base-year) value, not market value. The child did not have to live in the home, and there was no cap on the home's value. “Children” included stepchildren and children-in-law while the marriage lasted, and adopted children under 18. Proposition 193 (1996) added transfers from grandparents to grandchildren where every parent of the grandchild who was a child of the grandparent had died. Claims were made on BOE-58-AH and BOE-58-G.
§63.1 continues to govern transfers that occurred before February 16, 2021, including a parent's death before that date where the estate was settled later; the transfer date is the date of death (§61(h) for a trust that becomes irrevocable; Property Tax Rule 462.260), not the date of the distribution deed.
What §63.2 does instead
Proposition 19 added §63.2. The exclusion now covers only a family home, meaning the transferor's principal residence, or a family farm. The child must make the home their principal residence within one year of the transfer and file for the Homeowners' or Disabled Veterans' Exemption within that year. The excluded amount is the home's factored base-year value plus an allowance that started at $1,000,000 and is adjusted by the Board of Equalization every other February ($1,044,586 for transfers from February 16, 2025 through February 15, 2027); if the home's market value exceeds that sum, the excess is added to the child's assessment. A rental, a second home or vacant land passed to a child is reassessed at market value, as it would be for a stranger. The claim is BOE-19-P (BOE-19-G for grandparents).
The filing rule, in the statute's words (§63.2(f)(1)(B)): a claim is deemed timely if it is
filed within six months after the date of mailing of a notice of supplemental or escape assessment, issued as a result of the purchase or transfer
even when the three-year window has closed. The reassessment-after-death guide covers the one-year move-in rule and BOE-502-D; the Prop 19 calculator works the excluded and added amounts; the Prop 19 guide covers what still works.
A worked example, both ways
| Transfer in 2019 (§63.1) | Transfer in 2026 (§63.2) | |
|---|---|---|
| Parent's home: assessed $300,000, market $1,800,000 | Excluded in full; the child's assessment stays $300,000 | Excluded up to $300,000 + $1,044,586 = $1,344,586; the $455,414 excess is added, so the child's assessment is $755,414, and only if the child moves in within a year |
| Parent's rental: assessed $400,000, market $1,200,000 | Excluded (within the parent's $1,000,000 of other property); assessment stays $400,000 | Reassessed to $1,200,000 |
| Tax at 1.1% | About $7,700 a year for both properties | About $21,500 a year for both properties |
Frequently Asked Questions
What is Prop 58 in California?
Proposition 58, approved in November 1986 and implemented in Revenue and Taxation Code §63.1, excluded transfers of real property between parents and children from change-in-ownership reassessment: the transferor's principal residence of any value, plus the first $1 million of assessed value of all other real property per transferor. Proposition 193 (1996) extended it to grandparent-grandchild transfers when the grandchild's parents were deceased. For transfers on or after February 16, 2021 both are replaced by Proposition 19's narrower exclusion in §63.2.
Is Prop 58 still in effect?
Only for transfers that happened before February 16, 2021, including deaths before that date. §63.1 still governs those, and a claim (BOE-58-AH, or BOE-58-G for grandparents) can still be filed for them; a claim filed after the three-year window and after any notice applies prospectively. Any transfer on or after February 16, 2021 is governed by §63.2.
What did Prop 19 change for parent-child transfers?
Three things. Only a family home (the parent's principal residence) or family farm qualifies; rentals, second homes and other property are reassessed. The child must make the home their own principal residence within one year and claim the Homeowners' or Disabled Veterans' Exemption. And the excluded value is capped: the parent's factored base-year value plus an allowance that began at $1 million and is adjusted by the BOE every two years ($1,044,586 for transfers from February 16, 2025 through February 15, 2027); market value above that is added to the child's assessment.
Does Prop 58 apply to grandchildren?
Through Proposition 193: §63.1 extended the exclusion to transfers from grandparents to grandchildren where all the parents of the grandchild who were children of the grandparent were deceased on the transfer date. Prop 19 kept the grandparent-grandchild route in §63.2 with the same deceased-parent condition, subject to the family-home and value rules.
How long do I have to file the claim?
Three years from the transfer, or before the property is transferred again, for full effect under either rule; under §63.2 also before the child stops living in the home (§63.2(f)(1)(A)). Under §63.2(f)(1)(B) a claim is also timely if it is "filed within six months after the date of mailing of a notice of supplemental or escape assessment, issued as a result of the purchase or transfer". A later claim applies from the lien date of the year it is filed. The forms are BOE-58-AH (§63.1), BOE-58-G (§63.1 grandparents), BOE-19-P (§63.2) and BOE-19-G (§63.2 grandparents).
Can I avoid Prop 19 by using a trust or an LLC?
A revocable trust changes nothing: at the parent's death the trust becomes irrevocable and the transfer to the child is tested under §63.2 as of that date. An irrevocable trust funded before February 16, 2021 may have fixed the transfer date under the old rule, which is a question for the assessor and a lawyer. Transferring the home to an LLC first does not help: §63.2 (like §63.1) excludes transfers between individuals, and a later transfer of LLC interests to a child is tested under §64. The Prop 19 guide covers what still works.
Learn More
Sources: Revenue and Taxation Code §61(h), §63.1 and §63.2 and California Constitution article XIII A §2(h) and §2.1, from the Legislature's bulk data (build of October 18, 2026); §63.2(f)(1)(B) quoted verbatim, the rest paraphrased with the section cited. The $1,044,586 allowance is the Board of Equalization's published adjustment for February 16, 2025 – February 15, 2027. Forms BOE-58-AH, BOE-58-G, BOE-19-P and BOE-19-G. The worked example uses a 1.1% rate for illustration. Educational information, not legal or tax advice.
Last reviewed: October 2026.