Can I Transfer My Property Tax to Another Property? + FAQs

Property taxes have jumped roughly 10% nationwide in just two years, and the typical U.S. homeowner now pays about $3,000 annually. If you’re planning to move, you might wonder: can you take your low property tax bill with you to your next home?

In this guide, you’ll learn:

🏠 Transfer Tricks: Exactly when you can (and can’t) carry over your property tax to a new home.
📜 Laws by Location: How federal vs. state rules differ, plus a coast-to-coast look at property tax transfer policies.
👴 Senior & Special Cases: Programs for seniors, inherited homes, and disaster victims that let you keep a low tax rate.
🏢 Home vs. Business: Why primary residences get special tax breaks while commercial properties and second homes play by different rules.
⚠️ Avoid Costly Pitfalls: Common mistakes, legal snags, and timeline traps to avoid when transferring your tax base.

The Bottom Line Upfront: Can You Transfer Property Tax?

Yes – but only under specific conditions. In most cases, you cannot directly transfer your property tax from one property to another because property taxes are tied to the property’s assessed value and local tax rate. When you buy a new home, that home is usually assessed (valued for tax purposes) at its current market value, which typically means a higher tax bill if your previous home had a low assessed value.

However, certain states have special programs that let you transfer your existing taxable value (or a portion of it) to a new property. These rare exceptions are primarily aimed at helping specific groups like seniors, disabled homeowners, and those replacing homes after disasters. The ability to “carry” your tax rate is generally limited to moves within the same state, and even then you must meet strict criteria.

No Federal Program – It’s All Local

There is no federal law that allows transferring property tax between properties. Property taxes are levied by local governments and states, and rules vary widely. The concept of transferring a tax benefit is entirely a state-level issue. This means any opportunity to keep your low tax bill when moving will depend on state or local programs, not a nationwide policy.

State Rules Make the Difference

Whether you can transfer property taxes is determined by state law (and sometimes county rules). A handful of states—most notably California and Florida—have well-known provisions for tax base transfers. Some others, like Texas or Colorado, offer more limited forms of tax benefit portability for certain homeowners. In the majority of states, though, when you move to a new property you’ll be paying taxes based on that new property’s value with no carryover from your old home’s tax basis.

Why Property Taxes Usually Reset When You Move

To understand why transferring property tax is unusual, it helps to know how property taxes work. Property tax is typically based on the assessed value of a specific property, multiplied by the local tax rate. Each parcel of real estate is taxed separately. When a property changes ownership or new construction occurs, assessors often revalue it to current market price. That’s why buying a new house generally means a new (and often higher) tax assessment.

Most states follow a market-value system: your home’s assessed value (for tax purposes) is updated periodically or when it’s sold. For example, if you bought a house decades ago for $100,000, your assessed value might have risen gradually but stayed well below today’s market value. When you sell, the buyer’s assessed value may “reset” to the purchase price (or close to it), leading to a much bigger tax bill for the new owner. Under these common rules, you can’t take your old $100,000 assessment to a new $500,000 home—each property’s tax is its own.

Assessed Value vs. Market Value

It’s crucial to distinguish assessed value from market value. Market value is what your property would sell for in an open market. Assessed value is the value used by tax authorities to calculate your bill. In some places, assessed value equals market value; in others, there are caps or exemptions that make assessed value lower. If you’ve owned your home a long time in a state with tax limitations, your assessed value might be artificially low compared to market value. This “taxable value” cushion is what homeowners hope to transfer to a new property.

For instance, states like California and Florida deliberately cap the growth of assessed values for longtime owners:

In California, thanks to Proposition 13, a home’s assessed value can only go up around 2% per year (plus any new construction), no matter how fast the market grows. A house bought for $100,000 in 1990 might have an assessed value of only ~$200,000 today even if its market price is $800,000.
In Florida, the Save Our Homes law caps annual assessment increases at 3% for a primary residence (homestead), creating a big gap over time between the taxable value and market value.

When such a longtime owner moves, they face “losing” that low assessment and paying taxes on full market value of the new home. This is why some states created portability options—otherwise, high property taxes could discourage empty nesters or retirees from downsizing or relocating.

Not all states have large assessment disparities. Many jurisdictions re-appraise properties regularly (yearly or on a set cycle) or have uniform taxation rules. In those places, the assessed value of your old home might already be close to market value, so long-time owners aren’t extremely under-taxed relative to new buyers. There’s no special benefit to transfer because you weren’t enjoying a huge tax break to begin with. By contrast, acquisition-value states (like California, Florida, Oklahoma, and others with caps/freeze systems) are where this question usually arises. The more your old tax assessment was protected or capped, the more you’d want to carry that benefit over if possible.

When Can You Transfer Your Property Tax? (The Exceptions)

Transferring your property tax to another property is only possible through state-sanctioned programs or exceptions. Let’s explore the main scenarios where you actually can transfer or preserve your low tax base:

1. Seniors and Older Homeowners (55+ Portability Programs)

If you’re a senior citizen, you may be in luck—some states let older homeowners transfer their tax assessment to a new home to encourage downsizing or relocation. The logic is that empty nesters shouldn’t be “trapped” in oversized houses just to keep low taxes.

California – Proposition 19: California offers one of the most robust programs. Under Prop 19 (passed in 2020), homeowners 55 or older (or severely disabled) can move anywhere within California and take their low Prop 13 tax value with them. Here’s how it works:

You must purchase or build a new primary residence within 2 years of selling your original home.
The original home must have been your principal residence and you need to file a claim with the assessor.
You can do this up to three times in your lifetime (previously it was a one-time benefit under old Propositions 60/90).
If your new home costs equal or less than the sale price of the old home, your new home’s assessed value will be the same as your old one’s. If the new home is more expensive, you still get a benefit: the assessed value will be your old assessed value plus the difference in price. (For example, if you sold for $500,000 and bought for $600,000, the extra $100,000 gets added to your transferred value.)

In short, an eligible California senior can move to a more suitable home yet keep paying roughly the same property taxes (even if the new house is pricier, the increase in tax is much smaller than it would be without Prop 19).

Florida – “Save Our Homes” Portability: Florida’s homestead portability is another major example. Any Florida homeowner with a Homestead Exemption can transfer their accumulated tax savings when moving to a new homestead within the state:

Florida’s Save Our Homes (SOH) cap limits annual assessment increases to 3% for homesteads. Over years, this creates a gap between your home’s market value and its taxable value.
When you move, you can transfer up to $500,000 of that SOH value difference to your new primary home. Practically, this means your new home’s assessed value will be reduced by the amount of value you had protected on your old home.
To qualify, you must establish a new homestead within three tax years after leaving the old one, and you must file a portability application with your county assessor (usually at the same time as filing for the new Homestead Exemption).
Florida’s portability works for moves anywhere in the state. If your new house is cheaper than the old one, you transfer a proportional benefit (you won’t pay almost nothing on a mansion just because you sold a cottage, but you still carry a percentage of your savings). If the new house is more expensive, you bring over the full dollar amount of sheltered value (up to the cap).

This Florida benefit has enabled many retirees and families to upgrade or downsize homes without a huge tax spike. For example, someone selling a home with a taxable value of $200,000 (but a market value of $350,000) and buying a new $400,000 home might get the new home’s assessment rolled down to ~$250,000 instead of $400,000, saving thousands per year in taxes.

Texas – Tax Ceiling Transfer: Texas doesn’t allow a full assessed-value transfer like CA or FL, but it has a tax ceiling for seniors and the disabled on school district taxes. Homeowners over 65 (or disabled) in Texas have their school property tax portion frozen (it won’t go up) on their homestead. If they move to a new homestead in Texas, they can transfer that freeze to the new home:

The transfer isn’t a dollar-for-dollar carryover, but rather a percentage. For example, if you were paying only 50% of the normal school taxes on your old home because of the freeze, you’ll pay 50% of the school taxes on your new home.
This ensures that seniors aren’t penalized by moving; their new school tax bill will be capped at the same proportion of tax they were paying before. They must apply to the appraisal district for this transfer when they move.

Other states are considering or have minor versions of senior portability:

Colorado has a Senior Homestead Exemption (reducing 50% of taxes on the first $100,000 of value for 65+ who lived in their home 10+ years). Historically, if you moved, you’d lose this benefit (since it tied to the property). In 2024, Colorado lawmakers even approved a temporary measure allowing seniors to keep their exemption when relocating within the state for the 2025 and 2026 tax years. This pilot portability aims to let older adults move without forfeiting their tax break.
Illinois and some others have senior assessment freeze programs or credits, but those generally apply only as long as you remain in the same home (they don’t follow you to a new house).
Portability is rare overall. Outside a few states, seniors moving to a new residence will face a recalculation of property taxes from scratch. Always check your specific state or county’s offerings.

2. Disaster Replacement (Casualty Loss Provisions)

Losing a home to a natural disaster is traumatic – and some states try to ease the tax burden when you rebuild or replace that home. The idea is that if your house was destroyed (by wildfire, earthquake, hurricane, etc.), you shouldn’t be hit with a higher tax just because you have to move or reconstruct.

California again has provisions: If your home is substantially damaged by a disaster (in an area declared a disaster by the Governor), you can transfer your old assessed value to a replacement home. Key points:

The replacement home must be built or purchased within a certain time frame (often within 2-3 years) after the destruction of the original.
The new property must be similar in function (e.g., another house for a house) and usually located within the same county or sometimes any participating county.
Proposition 19 also folded in disaster victims statewide: you can move anywhere in California after your home is ruined and take your prior tax base along, as long as the replacement is of equal or lesser value (or with adjustments if more).
This has helped wildfire victims in California rebuild without losing their low Prop 13 tax base.

Other states: While explicit “tax base transfer” for disasters is less common elsewhere, many states offer some relief:

Some states allow a tax abatement or prorated tax forgiveness for the period after a home is destroyed or uninhabitable.
A few may allow you to retain a homestead cap or benefit if you rebuild on the same site within a time limit (essentially treating it as if you never moved).
If you relocate out of the area, however, generally you’ll face new assessments unless a law like California’s applies. Always check local disaster relief statutes – after major disasters, states sometimes pass temporary measures to assist property owners with taxes.

3. Inherited Properties (Keeping a Low Tax in the Family)

When a property is passed down from parents to children, property taxes can skyrocket if the home’s value has risen a lot since the parents bought it. A few places provide relief so heirs aren’t forced to sell the family home due to a tax jump.

California’s Parent-Child Transfer Exclusion: Under Prop 19 (as of 2021), California allows a transfer of a primary residence from parent to child (or vice versa) without reassessment, so the child can continue paying the parents’ low tax rate. Important details:

The inherited home must become the child’s primary residence (you have to move in and claim the homeowners’ exemption within a year). You can’t keep the low tax on, say, a rental or vacation home you inherited.
There is a value limit: If the property’s market value at time of transfer is more than $1 million above the parent’s assessed value, then the amount over that $1 million gets added to the new assessed value. (In other words, children can only “shield” up to that amount of market value from taxation; extremely valuable homes will see a partial reassessment.)
This benefit is available for a parent-to-child or child-to-parent transfer of a family home (and also family farms), and each child can only receive one family home exclusion in their lifetime.
Before Prop 19, California had even more generous rules (allowing transfers of investment properties and unlimited value exclusions for a home), but those ended. Now the law is more targeted to owner-occupied family homes.

Most other states do not have a comparable parent-to-child property tax exclusion. If you inherit a house in, say, New York or Illinois, the local assessor will typically reassess it to full market value when it transfers to you (unless you’re a surviving spouse, which usually isn’t considered a taxable transfer). That can drastically increase the annual taxes. A few states have small carve-outs:

Some states offer a one-time estate tax or inheritance tax benefit, but that’s different (that’s a tax on the transfer of wealth, not on property value).
States like Texas allow a surviving spouse to keep a tax ceiling or exemption (for example, if a spouse dies, the surviving spouse over 55 can keep the school tax freeze on the homestead). But if property goes to children, they don’t get the parent’s freeze or homestead cap unless they qualify independently.
In general, if you’re inheriting property and hope to keep the low taxes, check state laws. California stands out as a place where a child inheriting a primary home and living in it can avoid reassessment. Elsewhere, expect the tax bill to adjust to current values.

Tip: If keeping a family property with low taxes is important, some families try estate planning strategies (like trusts or gradual transfer of ownership shares) to mitigate revaluation. These can be complex and vary by state—consult a property attorney for advice in your state.

4. Other Special Cases (Eminent Domain, etc.)

A few other niche situations allow tax value transfers:

Government Acquisition (Eminent Domain): If your property is taken by the government for public use (through eminent domain or condemnation), some states will let you transfer your tax basis to a replacement property. For example, California law permits owners to carry over their Prop 13 value to a new property if their original was acquired for a public project. This ensures you’re not penalized tax-wise on top of losing your property.
Disabled Homeowners: In many places, disabled homeowners are grouped with seniors for relief programs. California’s Prop 19 includes those with severe disabilities in the same transfer rights as seniors 55+. Other states might have separate provisions (or like Texas, the disabled also get a tax ceiling that can be transferred similarly).
Farm or Conservation Land: A handful of states have special assessment programs for agricultural or conservation land. While not a “transfer” per se, if a farm stays in the family or continues as farmland after sale, some states allow it to keep its lower agricultural tax assessment rather than being taxed at market development value. Michigan, for example, lets certain qualified farm properties avoid reassessment at sale if the land remains in agricultural use (the new owner files a continuity affidavit). This isn’t the homeowner portability scenario, but it’s another way tax value can follow the use of the property rather than resetting on sale.

Moving to a New State – No Carryovers Across State Lines

One common question is whether you can move to a different state and bring your property tax benefit along. The answer is no. Tax portability programs do not cross state borders:

If you sell a house in State A with low taxes and move to State B, State B will assess your new home under its own rules (which likely means at market value). There’s no mechanism for State B to honor State A’s tax assessment.
Even in the unique case of two states with similar programs (say you moved from Florida to California or vice versa), there’s no reciprocity. Each program only applies to moves within that state.
The best you can do is research your destination state’s property tax relief options. For instance, you might not be able to carry over your old assessment, but perhaps the new state has a generous homestead exemption, a senior freeze, or generally lower tax rates that soften the blow.

In summary, property tax transfers are strictly an intra-state benefit. Plan any long-distance move with the understanding that your property taxes will be recalculated anew under the laws of your new state or county.

State-by-State Variations: Why Location Matters

Property tax laws vary wildly across the United States. This diversity is why transferring property tax is easy in some places and impossible in others. Let’s break down a few categories of state approaches:

States with Tax Assessment Caps: States like California (Prop 13), Florida (SOH), Oregon, Michigan, Texas, and others limit how fast a home’s taxable value can increase for current owners. These create situations where long-term owners pay much less tax than new buyers. Of these, only a subset allow transfers of the tax base (California and Florida broadly, Texas and Oregon in limited ways, etc.). Michigan, for example, caps growth at inflation but resets the assessment upon sale for everyone except some agricultural transfers—no general portability for homeowners there.
States with Homestead Exemptions (But No Portability): Nearly every state offers a homestead exemption or credit, which lowers the taxable value or tax bill for primary residences. When you move, you can claim the homestead benefit on your new home, but you start fresh at that home’s value. For instance, New York has the STAR program (school tax relief) for owner-occupied homes and senior exemptions; Georgia and South Carolina have homestead exemptions for elderly homeowners that cut their taxes. Yet, none of these states let you bring a prior assessment—your new home simply gets whatever exemptions and then taxes on its current value.
States with Uniform Reassessment: Many states in the Northeast (like New Jersey, Massachusetts, Pennsylvania) and Midwest regularly reassess properties to market value. There, a home bought 20 years ago likely has an updated assessed value close to market, so long-time owners aren’t extremely under-taxed relative to new buyers. Because there’s no large accrued tax advantage, the question of “transferring” it rarely arises, and no such provisions exist. If you move from one house to another in these states, you’ll just pay based on the new house’s price (minus any general exemptions or credits you’re eligible for).
Special Local Programs: Sometimes the “rules” can differ by county or city. For example, California initially allowed inter-county base transfers only if the destination county opted in (Prop 90). That’s moot now since Prop 19 allows it statewide. But in other states, a local jurisdiction might have its own relief that doesn’t travel even to the next county. Always check both state and county assessor websites when researching.

Here’s a snapshot comparison of a few states and their property tax transfer policies:

State	Property Tax Transfer Policy
California	Allows transfers for 55+ (or disabled) and disaster victims statewide (Prop 19). Can transfer base value up to 3 times within 2 years of move; new home can be anywhere in CA. Inheritors can keep low tax on a family home if conditions are met.
Florida	Allows homestead “Save Our Homes” portability for all ages. Transfer up to $500k of assessed value difference to a new Florida homestead within 3 years. No age restriction, but both old and new property must have homestead status.
Texas	No assessed value transfer, but seniors/disabled can transfer their school tax ceiling percentage to a new Texas home. Other portions of the tax and the new home’s value will adjust to current levels.
Colorado	Senior exemption (50% of $100k) normally tied to the home. A temporary law allows carrying it to a new home in 2025–2026. Otherwise, no base value transfer; taxes reset on the new home’s full value.
New York	No portability of tax assessments. Offers senior exemptions (e.g., 50% reduction for low-income seniors) but each home is assessed on its own. Moving means reapplying for any exemptions at the new location, and the new home’s value will determine taxes.
Illinois	No transfer of tax base. Various exemptions (general homestead, senior freeze, etc.) exist, but when you buy a new property it will be assessed at market value. Long-time owners’ assessment advantages don’t move with them.
Oregon	Caps assessed value increases (Measure 50) for all properties at 3% per year, but resets value to market on sale. No provision to carry an old assessed value to a new property; a move triggers a new base year assessment.
Most states	No special tax portability programs. Property taxes are recalculated on the new property’s value, though homeowners can usually claim any available homestead or senior relief anew. Expect a fresh assessment when moving.

As the table shows, California and Florida are unique leaders in offering true tax basis transfers for moves, with Texas and a couple of others providing narrower relief. Everywhere else, assume a fresh tax start for your new home.

Pros and Cons of Transferring a Tax Assessment

If you’re in a position to potentially transfer your property tax base, it’s worth weighing the benefits against the drawbacks. While keeping a low tax sounds great, these programs have some nuances. Here’s a quick look at the pros and cons:

Pros	Cons
Big Tax Savings: Maintain a low annual tax bill on your new home, potentially saving thousands each year.	Strict Eligibility: Only available to certain groups (age 55+, etc.) or circumstances, so most property owners won’t qualify.
Mobility for Retirees: Encourages seniors to move to homes that better fit their needs (downsizing or closer to family) without a tax penalty.	Limitations Apply: Often restricted to moves within the same state (or even same county), within set time frames, and sometimes to similarly priced properties.
Keeps Family Homes Affordable: In places like CA, allows children to keep a beloved family home without an unaffordable tax hike.	Complex Rules & Paperwork: You must navigate applications, deadlines, and detailed rules. Missing a form or date could nullify the benefit.
Disaster Relief: Helps homeowners rebuild or relocate after catastrophes without added financial stress from taxes.	Partial Benefit in Some Cases: Transferred value may not completely eliminate a tax increase (e.g. if new home is much more expensive or if benefits are capped).
Economic Incentive: May free up housing stock (e.g., large homes) as older owners feel freer to sell, benefiting the real estate market.	Potential Inequity: Neighbors in identical homes might pay very different taxes, and new residents who don’t qualify can see this as unfair. Also, local governments may collect less revenue from these special cases.

Overall, the pros are mostly on the homeowner’s side—lower taxes and flexibility—while the cons highlight that these are narrow, regulated perks with hoops to jump through. If you do qualify, the financial upside is significant, but execution requires care.

Avoidable Mistakes and Pitfalls to Watch Out For

Transferring a property tax base isn’t automatic. It’s easy to make a misstep that could cost you the benefit. Here are some common mistakes to avoid:

Assuming You Qualify Without Checking: Don’t make an offer on a new house assuming you can transfer your taxes unless you’re absolutely sure. For instance, simply being a senior doesn’t guarantee portability in every state. Always verify your state/county’s exact rules (age, timing, value limits) before you count on the tax break.
Missing Deadlines for Filing: These programs usually require timely paperwork. In Florida, you must apply for portability by March 1 and within 3 years of leaving your old homestead. In California, you need to buy or build within 2 years and file claims with the assessor. Mark your calendar and file all forms on time—missing a deadline can void your eligibility.
Buying First, Selling Later (Sequence Issues): Some jurisdictions care about the order of transactions. California allows you to buy the replacement first then sell the original (or vice versa) within two years, but you must still file for the benefit. Make sure you understand if the sale and purchase need a specific sequence or just to occur within a window. Plan your move so you don’t fall outside the allowed period.
Upsizing Too Much: Be mindful of value limits. In California, if you buy a significantly more expensive home, you’ll pay higher taxes on the difference (your benefit only covers what your old home’s value was). In Florida, if you downsize dramatically, you can only transfer a proportional amount of your old benefit. Know how the math will work out so you aren’t surprised by a bigger tax bill than expected.
Moving Out of State Expecting a Loophole: As mentioned, tax base transfers stop at state lines. There’s no workaround—if you’re leaving a state, you leave its property tax rules behind. Don’t base a relocation decision on a benefit that won’t exist in your new location.
Not Occupying the Home (When Required): For inheritance transfers or even some senior programs, you often must use the new property as your primary residence. If you try to keep the old low tax on a house that you rent out or a vacation home, you’ll likely lose the benefit and face a reassessment. Always follow occupancy rules and, if required, claim homestead exemptions on the new property to solidify that it’s your main home.
Overlooking Local Variations: Even within a state, implementation details can vary by county. Some counties might have additional forms or interpretations of state law. Always consult your county assessor’s office or website for guidance. An innocent mistake, like applying in the wrong county or not including necessary documentation, could delay or derail your tax transfer.
Neglecting Other Tax Factors: Transferring your property tax base doesn’t mean all costs are equal. Your new area might have a different tax rate (millage). For example, you could move your low assessed value to a new county but if that county’s tax rate is higher, your tax bill could still increase somewhat. Also consider things like Mello-Roos or special district levies (in California) or CDD fees (in Florida) that might apply to the new property—they aren’t covered by transferring assessed value.

Bottom line: Read the fine print and possibly consult a property tax professional if you’re attempting to transfer a tax benefit. The process can save you a lot of money, but only if done correctly.

Real-World Examples: How Does a Tax Base Transfer Work?

To make this more concrete, let’s look at a few scenarios illustrating what happens with and without property tax transfer benefits:

Example 1: California Senior Downsizing

Scenario: Maria, age 60, sells her long-time California home and buys a smaller condo in the same state.

Old Home: Market value $600,000; assessed value $250,000 (thanks to Prop 13). Annual taxes were about $2,750 (1.1% rate).
New Home: Purchase price $600,000 (similar value to what she sold for).

Maria qualifies under Prop 19 to transfer her base year value. She sells her old home and buys the new one within 6 months, and files the necessary claim.

Outcome:

Without Prop 19 (Normal Reassessment)	With Prop 19 Transfer (55+ benefit)
New home assessed at $600,000 (market value).	New home assessed at $250,000 (same as old home’s taxable value).
Property tax ~$6,600 per year (assuming ~1.1% rate on $600k).	Property tax ~$2,750 per year (1.1% of $250k, plus minor inflation adjustments).

By using the transfer, Maria keeps her tax bill nearly the same. Without it, moving would have more than doubled her yearly property taxes. This empowers her to downsize without financial strain.

Example 2: Moving Within Florida with Homestead Portability

Scenario: The Johnsons own a Florida home with a market value of $400,000 but an assessed value of $300,000 (they’ve built up a $100,000 Save Our Homes cap savings). They decide to sell and purchase a new home closer to their grandkids for $450,000.

Both old and new properties are in Florida and will be homesteaded.

They apply for portability when buying the new home.

Outcome:

Without Portability (New assessment)	With Florida Portability
New home assessed at $450,000 (full market value).	New home assessed at $350,000 (market $450k minus $100k SOH benefit transferred).
Taxable value = $450k. If local tax rate is 1.5%, taxes = $6,750/year.	Taxable value = $350k. At 1.5%, taxes = $5,250/year.

Thanks to portability, the Johnsons save about $1,500 each year in property taxes on their new home. They essentially carried over the tax advantage from years of owning their prior home. If they had moved out of Florida, or waited too long, they would have lost this benefit.

Example 3: Inheriting a Parent’s Home – California vs. Another State

Scenario: Two siblings, Alice and Bob, each inherit a house from their respective parents in different states:

Alice inherits her late mother’s house in California. Mom bought it in 1985 and was paying taxes on an assessed value of $130,000 (market value now is $800,000). Alice decides to move into this home as her primary residence.
Bob inherits his father’s house in Illinois. Dad had owned it for 30 years; assessed value was $200,000 and market value at death is $500,000. Bob also moves in as his primary residence.

Outcome:

Alice in California (Prop 19 Parent-Child Exclusion)	Bob in Illinois (No exclusion)
Assessed value remains $130,000 (parent’s value carried over, since Alice moves in and the value difference is within allowed limit).	Assessed value resets to $500,000 (full market value at transfer, because Illinois doesn’t exclude inheritances from reassessment).
Annual taxes continue to be around $1,430 (at ~1.1% in CA, with slight increases for inflation).	Annual taxes jump to around $10,000 (assuming ~2% composite rate in IL on $500k).
Alice can afford to keep the family home, benefiting from decades-old tax rates.	Bob faces a much higher tax bill and may struggle with the costs of keeping the property. He might consider selling if the taxes are too high relative to his budget.

This example shows how California’s unique inheritance exclusion can preserve a low tax bill across generations—something most states do not offer. Bob, in a state without such a rule, gets no break when taking over his dad’s house, aside from any general homestead exemptions.

These scenarios underscore the importance of local laws. Identical situations yield very different tax outcomes depending on the state. Always analyze your personal case under your state’s rules to predict what will happen.

Key Terms and Concepts Explained

Understanding the language of property taxes will help you navigate this topic more confidently. Here are some key terms and entities and how they relate to transferring property tax:

Assessed Value: The dollar value placed on a property by the tax assessor, which is used to calculate your property tax. This may be equal to market value or capped by law. Transferring a tax base essentially means transferring an assessed value from one property to another.
Market Value: What your property would sell for in an open market. In most cases, a new owner’s assessed value will be reset to market value (raising taxes) unless a program allows an exception.
Proposition 13: California’s landmark 1978 property tax law that fixed property tax rates at 1% and capped annual increases in assessed value at 2% until a change in ownership. Prop 13 created the environment where transferring a low assessed value is highly desirable.
Proposition 19: A California constitutional amendment effective 2021 that expanded property tax base transfers for those 55+, disabled, or affected by disasters (and narrowed the property tax benefits provided to inheritors of property). Prop 19 is what lets California seniors move their tax assessment anywhere in the state (up to three times) and also imposes conditions on inherited properties.
Homestead Exemption: A reduction in taxable value (or credit) for owner-occupied primary residences. Nearly every state has some form of homestead benefit. It usually must be re-applied for at a new home and is separate from base value transfer; however, having a homestead is often a prerequisite to get portability (e.g., Florida requires both old and new home to have homestead status).
Save Our Homes (SOH): Florida’s constitutional cap that limits annual increases in a homestead’s assessed value to 3%. It’s the reason long-term Florida homeowners have a “cushion” they can port to a new home. The accumulated difference between market and assessed value under SOH is the benefit that’s transferable.
Portability: The ability to transfer some of your property tax benefit to a new property. Florida uses this term for its homestead assessment transfer, but it’s used generally to describe any tax base transfer. If someone asks about “portability,” they mean carrying over their low tax assessment to their next home.
Tax Ceiling / Freeze: A limit on the amount of tax due that will not increase further. Texas’s over-65 tax ceiling on school taxes is an example. Transferring a tax ceiling means carrying over the capped tax benefit (often as a percentage of tax paid) to a new property.
Reassessment (Reset): The process of recalculating a property’s assessed value, usually to full market value after a sale or transfer. All the benefits discussed are basically about avoiding reassessment. If you can transfer your old value, you’re bypassing what would otherwise be a reset to market value on the new property.
Millage Rate (Tax Rate): The rate at which property is taxed, often expressed in mills (thousandths of a dollar). For example, a 1.5% tax rate is 15 mills. When moving, keep in mind a different jurisdiction’s tax rate will apply to whatever assessed value you have (transferred or not). A higher rate in your new area can erode some savings from a transferred value.
Nordlinger v. Hahn: A notable 1992 U.S. Supreme Court case that upheld California’s Prop 13 system. It confirmed that large differences in neighbors’ property tax assessments (due to one owner holding a low capped value) do not violate the Constitution. This legal precedent supports states’ rights to offer tax transfer benefits or assessment caps even if they create unequal tax burdens.

By familiarizing yourself with these terms, you can better communicate with assessors and understand documentation when you pursue a property tax transfer.

Conclusion: Planning Ahead

Transferring your property tax to another property is a possibility, not a guarantee. The rules depend entirely on where you live (and where you’re moving). If you’re hoping to carry a low tax bill forward:

Start by researching your current state and county for any property tax transfer or relief programs, and do the same for your destination.
Factor in timelines and requirements into your moving plans (e.g., age eligibility, purchase windows, value limits for new homes).
When in doubt, call your local assessor’s office. They can confirm if you qualify and guide you on the application steps. In complex cases, consult a property tax attorney or specialist.

By being proactive and informed, you can make the most of any tax relief available and avoid unwelcome surprises in your next property tax bill. After all, a home is more than its price tag—its ongoing costs, like property taxes, need to fit your long-term budget as well.

FAQ: Transferring Property Taxes

Q: Can I transfer my property tax to a new state if I move?
A: No. Property tax benefits don’t carry across state lines. Your new home will be taxed under the rules of its own state.

Q: Does my property tax transfer automatically when I buy a new house?
A: No – you must apply and qualify for a transfer program. Otherwise, your new home will be taxed at a fresh, full assessment.

Q: If I inherit a house, can I keep the deceased owner’s tax rate?
A: Only in rare cases (like California). In most places an inherited property is reassessed at current market value, which means a higher tax bill.

Q: Do property tax transfer programs apply to commercial or rental properties?
A: Generally not. Portability mostly applies to primary residences. Commercial buildings and second homes are typically reassessed at sale with no carryover of the previous owner’s tax value.

Q: What happens if I buy a more expensive home than my old one?
A: Expect a higher tax bill, even with a transfer. You’ll pay full taxes on the value above your old home’s price. Upsizing still raises your taxes (just less than it would without the transfer).

Q: How do I apply to transfer my property tax base?
A: Through your local assessor’s office. You’ll need to file a specific form (often alongside a new homestead exemption application) within the required deadline after your move.

Q: If I’m disabled, can I transfer my tax the same way a senior can?
A: In many cases, yes. For example, California lets severely disabled homeowners transfer their tax base under the same rules as seniors. Check your state’s eligibility criteria.

Q: Are there any plans to expand property tax portability to more people or states?
A: Some states are considering it (Colorado is testing a limited program), but any expansion needs new laws. For now, most states have no immediate plans to broaden these benefits.