Parent-Child Property Tax Exemptions
Children who receive real property from their parents, either by gift, sale, or inheritance, would like to keep their parents low property taxes in place. This can be done for the principal residence by filing an exemption form with the assessor, regardless of the value of the principal residence.
For all other real property, the parents can transfer up to 1 million in assessed value to their children, without triggering a property tax reassessment. The proper exemption form must be timely filed. Note this is 1 million in ASSESSED value, not fair market value – so much more property can be transferred reassessment free, than you might expect.