Prop H Parcel Tax: The Senior Exemption, the Landlord Pass-Through and the Dates SF Owners Can't Miss

The fine print on Prop H

My last post covered the headline numbers on Proposition H, San Francisco's new Muni parcel tax, which passed November 3 with 74.3% yes in early returns (SF Standard, Nov 4, 2026). This one is for people who need to actually do something about it: seniors who want the exemption, landlords figuring out what they can pass along, condo owners wondering how they are classified, and trustees or heirs who have just found themselves responsible for a San Francisco property. The rates and exemption rules below come from the SFMTA's parcel tax FAQ at sfmta.com for FY2027-28.

Who qualifies for the senior exemption

If you are 65 or older and the property is your principal residence, you can get a full exemption on a single-family parcel. That means the $129 base charge, and anything above it for a larger house, goes to zero. Two things trip people up. First, it is not automatic. You have to apply, and the deadline is June 1. Miss it and you pay for the year. Second, the property has to be where you actually live. A senior who owns a second home in the city or a rental does not qualify on those parcels. There is no low-income exemption of any kind, so a younger owner on a fixed income pays the full rate. Since the first bill arrives on the FY2027-28 property tax statement mailed in fall 2027, put the June 1 deadline on your calendar now and watch for the application process from the city.

What multi-unit owners pay and how the senior reduction works

A multifamily building up to 5,000 square feet pays $249 a year. Above that it is $249 plus $0.195 per square foot, so a 20,000-square-foot apartment building owes $3,174, and no single parcel pays more than $50,000. The senior exemption works differently here. Instead of wiping out the bill, it takes $249 off for each unit occupied by a qualifying senior. In a small building where two units are home to residents 65 and older, that is $498 off. The application requirement and the June 1 deadline apply the same way, and the owner is the one filing, so landlords with older tenants have a reason to have that conversation early.

The rent-control pass-through

Owners of rent-controlled units can pass through part of the tax to tenants, but the limit is tight: up to 50% of the tax, capped at $65 per year. On a small building paying $249, half would be $124.50, but the cap holds it to $65. Spread across twelve months that is under $5.50. Keep in mind that the amounts rise with inflation starting in FY2028-29, so the math may shift slightly over the 15-year life of the tax, which expires June 30, 2042. The pass-through is permitted, not required, and I suspect many small landlords will decide the paperwork is not worth it.

Condos and mixed-use buildings

A condo with its own assessor's parcel number is treated as a single-family parcel. That means $129 a year, and a senior owner-occupant can get the full exemption. This is good news for condo owners, who might otherwise have worried about being lumped into the multifamily category. Mixed-use buildings, the classic storefront with apartments above, are taxed at the non-residential rate of $799 a year for buildings up to 5,000 square feet. Pure commercial space is also $799 up to 5,000 square feet, and $799 plus $0.76 per square foot from 5,001 to 50,000. Vacant land over 2,000 square feet pays $392. If you own a mixed-use parcel and a senior lives upstairs, I would ask the city directly how the exemption applies, since the FAQ frames the senior reduction in terms of single-family and multifamily parcels.

For heirs and trustees

Much of my work is helping families settle estates that include San Francisco real estate, and here is the point I want to make plainly: this tax follows the parcel, not the person. If your mother had the senior exemption on her home, that exemption ends with her occupancy. Once the estate or trust holds the property, the full rate applies, and it keeps applying every year the property sits unsold. For a typical house that is $129; for a 4,000-square-foot home it is $549; for a small apartment building it is $249 or more. Those are not huge numbers next to attorney fees and deferred maintenance, but they belong in the carrying-cost budget alongside property tax, insurance and utilities. When you are deciding whether to sell quickly or hold through a long court process, every line matters. Also expect the parcel tax to show up on the title report and in disclosures to buyers once it is levied, so have the figure ready.

If you are handling an inherited property in the city, or just want to understand how Prop H changes your own numbers, you can start with my San Francisco neighborhood guide and then give me a call. I am happy to talk it through.

Sources: SFMTA parcel tax FAQ, sfmta.com (FY2027-28 rates, senior exemption, June 1 deadline, pass-through cap, condo and mixed-use treatment, first bill and expiration dates); SF Standard, Nov 4, 2026 (Prop H early returns). This article is general information, not tax or legal advice.