Should I buy before I sell?

Prop 19 allows it if you sell within two years, but buying first can cost more in property tax. The new home is taxed on its full value until the old one sells, with no refund. And if the new home costs more, your allowance is 100% of your sale price, against 105% within a year after.

Facts reviewed September 26, 2026Re-checked quarterly and when the rules change.

Tax on the new home in the meantime

Until your old home sells, the new one is taxed on its full value, at its own county’s tax rate. The tax for that period isn’t refunded. The longer you own both homes, the more that adds up.

Your carried-over value takes effect from the date the old home sells. Once the assessor processes your claim, tax paid above that value from then on is refunded. Ask the new home’s county assessor what to expect.

A smaller allowance if the new home costs more

Buying first gives you a 100% allowance, so the new home can cost up to your sale price before value is added. Buying within the first year after the sale gives 105%, and the second year gives 110%. Anything the new home costs above that amount is added to your taxable value.

So the same purchase can end up with a higher taxable value if you buy first. The example below compares the two.

Age counts on the day you sell

At least one owner must be 55 or older on the date the old home sells, not the date you buy. An owner who is severely and permanently disabled can qualify at any age.

You also need to sell within two years of buying the new home. After that, the move no longer qualifies.

Worked example

Taxable value $300,000, sold for $600,000, and a new home bought for $700,000.

Bought before the sale (100% allowance): $400,000
Bought within a year after (105% allowance): $370,000

California State Board of Equalization, Publication 801

Run your own numbers →

Tax on the new home in the meantime

A smaller allowance if the new home costs more

Age counts on the day you sell

Worked example

Sources