Selling an Inherited Home in Sacramento, CA — 2026 Guide

No California estate tax at any estate size. Federal estate tax threshold: $13.99M (2026). Federal step-up in basis: inherited Sacramento home worth $480,000 with parent’s basis of $85,000 (purchased 1988) → basis steps up to $480,000 at date of death; sold for $480,000 = zero federal capital gains tax. California 13.3% income tax on any appreciation above the stepped-up basis. Proposition 19 (effective February 16, 2021): parent-child property tax exclusion requires heir to occupy as primary residence within 1 year AND the FMV-parent AV gap must be under $1M. For many Sacramento heirs: if they won’t occupy, full property tax reassessment → annual increase of $2,000–$5,000/year. Sacramento County Superior Court Probate Division (720 9th Street, Sacramento, CA 95814). California IAEA: executor can sell without separate court confirmation.

Proposition 19: Sacramento’s Inherited Property Tax Trigger

California Proposition 19 (effective February 16, 2021) fundamentally changed the parent-child property tax exclusion in California. For Sacramento heirs:

The Prop 19 rules:

• The heir must establish the inherited property as their primary residence within 1 year of the date of death (or date of transfer)
• The property tax exclusion is limited to $1 million of assessed value above the parent’s AV (the “cap”)
• If the heir occupies AND the FMV-parent AV gap is under $1M: no reassessment or limited reassessment
• If the heir does NOT occupy within 1 year: full reassessment to current FMV

Sacramento-specific examples:

Example 1: Del Paso Heights home, FMV $390,000, parent AV $110,000 (purchased 1995)

• FMV − parent AV = $280,000 < $1M cap
• If heir occupies within 1 year: no property tax reassessment; heir keeps parent’s ~$1,210/year tax bill
• If heir does NOT occupy: new AV = $390,000 → tax ~$4,290/year (increase of ~$3,080/year)

Example 2: Elk Grove home, FMV $620,000, parent AV $180,000 (purchased 2000)

• FMV − parent AV = $440,000 < $1M cap
• If heir occupies within 1 year: no reassessment; heir keeps parent’s ~$1,980/year tax bill
• If heir does NOT occupy: new AV = $620,000 → tax ~$6,820/year (increase of ~$4,840/year)

Example 3: Folsom home, FMV $780,000, parent AV $220,000 (purchased 1998)

• FMV − parent AV = $560,000 < $1M cap
• If heir occupies within 1 year: no reassessment
• If heir does NOT occupy: new AV = $780,000 → tax ~$8,580/year (increase of ~$5,160/year)

The 1-year occupancy deadline creates meaningful urgency: Sacramento heirs who cannot or will not move into the inherited home face immediate property tax increases of $2,000–$5,000+/year upon the 1-year deadline passing. A cash sale within that 1-year window avoids paying the increased tax burden.

No California Estate Tax

California does not impose a state estate tax. Unlike Massachusetts ($2M threshold), Oregon ($1M threshold), Washington ($2.193M threshold), and other states, California has zero state estate tax regardless of estate size. The federal estate tax threshold is $13.99 million in 2026 — the vast majority of Sacramento estates are well below this threshold. Sacramento heirs owe no California estate tax.

Sacramento County Probate: Superior Court at 720 9th Street

Sacramento County Superior Court Probate Division (720 9th Street, Sacramento, CA 95814) governs Sacramento estates under California Probate Code.

California Probate threshold: $184,500 (2026). Estates with California real property above $184,500 net value require formal probate. Sacramento homes worth $300,000–$700,000 typically exceed this threshold — formal probate required unless held in trust or with right of survivorship.

California IAEA (Probate Code §§ 10400–10592): The Independent Administration of Estates Act allows a court-appointed executor/administrator to sell real property without separate court confirmation — as long as the estate receives at least 90% of the appraised value. For Sacramento heirs: the executor can list the property, accept an offer at or above 90% of appraised value, and close without a court hearing to confirm the sale. This significantly speeds up probate sales.

California Small Estate Affidavit (Probate Code § 13100): Available for estates with California personal property under $184,500 — NOT applicable to Sacramento real property.

California Revocable Transfer on Death Deed (Probate Code § 5642 — RTDD): California’s RTDD allows real property to transfer to a named beneficiary at death without probate. If the Sacramento home was held under a valid RTDD recorded with the Sacramento County Recorder’s Office: the named beneficiary records a certified death certificate and the RTDD → no probate required. The RTDD must have been executed and recorded before death.

California Living Trust: If the Sacramento home was held in a revocable living trust: the successor trustee can sell immediately after the decedent’s death — no Sacramento County Superior Court involvement.

California probate timeline: 9 to 18 months for a formal probate proceeding; Sacramento County can run 12 to 18+ months for contested or complex estates.

Capital Gains on Inherited Sacramento Property

Federal step-up: Inherited property receives stepped-up basis equal to FMV at date of death. A Rancho Cordova home inherited at $450,000 FMV, sold within 6 months for $450,000: zero federal capital gains.

California 13.3% income tax: California taxes capital gains as ordinary income at rates up to 13.3%. For any appreciation above the stepped-up basis, California 13.3% applies. California does not conform to the federal preferential long-term capital gains rate — all gains are taxed as ordinary income. This is the highest state income tax rate in the US.

Example: Sacramento heir inherits home with stepped-up basis of $470,000. Heir holds for 2 years and then sells for $550,000. Gain above step-up: $80,000. California 13.3%: $10,640 in state income tax. Federal long-term capital gains (at 20%): $16,000. Combined: $26,640 on $80,000 gain — effective 33.3% rate at the top brackets.

Get a cash offer on your inherited Sacramento home →

For the comprehensive nationwide guide to selling inherited property, see: How to Sell an Inherited House: Complete 2026 Guide →

For the full overview of Sacramento fast-sale options, see: Sell My House Fast Sacramento CA: Every Real Option in 2026