California Seniors Could Be Exempt From Property Taxes? Here’s What We Know.
The 2026 "60+ Property Tax Exemption" Initiative
A bold new proposal has officially cleared the California Secretary of State’s office to begin collecting signatures. If it qualifies for the November 3, 2026 ballot and passes, it would create one of the most significant property tax shifts since Proposition 13.
The headline is simple: Homeowners aged 60 and older could be exempt from property taxes on their primary residence.
The Requirements: Who Would Qualify?
Under this initiative (Constitutional Amendment #25-0035), a homeowner (or their spouse) must be 60+ and meet one of these two residency milestones:
The 5-Year Rule: You have lived in your current home as a primary residence for 5 consecutive years.
The 10-Year Rule: You have lived anywhere in California for at least 10 years.
The Fine Print:
Primary Residence Only: This does not apply to second homes or investment properties.
Certification: Eligibility must be re-certified every five years.
Bonds & Assessments: You would still be responsible for voter-approved bonds and special assessments (like those often found on South Bay tax bills).
Why This is a "Game Changer" for the South Bay
In high-value areas like Palos Verdes, Manhattan Beach, and Redondo Beach, many long-term owners are "house rich but cash constrained."
If this measure passes, we could see:
Locked-in Inventory: Seniors who were considering "downsizing" may now choose to stay in their family homes forever, further tightening the local inventory.
Financial Relief: A massive reduction in monthly carrying costs for retirees on fixed incomes.
Revenue Debates: State analysts estimate a $12B to $20B annual drop in revenue for schools and local services. This will likely be the primary argument against the measure.
Prop 19 vs. This New Proposal
It is important not to confuse this with current laws:
Prop 19 (Current Law): Allows you to transfer your low tax base to a new home. You still pay taxes; they just don't jump to market rate.
The 2026 Proposal: Would eliminate the base property tax entirely for qualifying seniors.
The Road to the Ballot: Key Dates
This is not yet law. To get on the November 2026 ballot, supporters must gather 874,641 valid signatures.
August 4, 2026: The deadline to submit all signatures to county election officials.
November 3, 2026: Election Day (if it qualifies).
The Bottom Line
For now, continue your tax planning under current Prop 13 and Prop 19 rules. However, if you are a homeowner in your 60s—or approaching that milestone—this is the most important piece of legislation to watch this year.
