The State of California’s fiscal year runs from July 1st to June 30th. The counties assess and collect the property taxes.
Property tax collection occurs in two equal installments. The first installment covers July 1st through December 31st with the payment due by November 1st which becomes delinquent on December 10th. Payment not received (regardless of postmark date) by 5 p.m. on the delinquent date assess a 10 percent penalty. Penalties keep increasing substantially if not fully paid by June 30th.
The assessed value of the property determines the amount of tax. During the first full fiscal year of property ownership, most homeowners pay one percent of the sales price. However, see Supplemental Tax below.
Every year, the property’s value may be adjusted by the county assessor to account for inflation. However, the maximum upward adjustment can only be two percent.
Some communities may levy additional assessments due to voter-approved bonds. Such bonds typically provide funding for transportation needs, pay for schools, local parks, sanitation districts, and water supplies. Additional assessments amount to .25 up to .50 percent added to the tax bill.
Read more information regarding the California Property Tax and the Supplemental Property Taxes from The University of California.
In addition, a supplemental tax bill is sent to new homeowners after the closing of escrow. The supplemental tax is based on the difference between the seller’s value according to the current tax rolls and the new value at the time of the sale determined by the sales price. The amount due is prorated over the remaining months of the fiscal year.
For example, a property’s old assessed value was $150,000 before its sale for $200,000. The $50,000 difference subject to the supplemental tax is paid by the buyer.
If the property reassessment shows a lower value, the new homeowner receives a refund from the supplemental taxes already paid.
California’s Constitution provides for a principal place of residence Homeowner’s Exemption reducing the assessed value of the home by $7,000. This amounts to a savings of $70. Application for the Homeowner’s Exemption is made with the County Tax Assessor.
California Propositions 60 and 90 allow homeowners 55 and older an exception to increases of their property taxes.
Seniors keep their current property tax obligations at the same level as long as their new property is equal or of lesser value than the original property sold.
Proposition 60 allows this exception for homes sold and bought in the same county.
Proposition 90 allows the sale of a house in a county opting to be part of this program and buying a house in another county also part of this program. The counties opting into Proposition 90 are:
Two voter-approved propositions enable reassessment exceptions for homes transferred between family members. This means the supplemental tax will not apply.
Transfer of ownership of a home between a parent and a child creates an exception under Proposition 58.
Transfer of ownership between a grandparent and a grandchild comes under the Proposition 193 exception.
Qualifying for these exceptions requires:
Not eligible for exception includes:
Have questions?
Normally, California property tax rates are established by the state legislature or a combination of state and local legislative bodies.
However, California voters approved Proposition 13 on June 6, 1978, reducing the property tax rate from three to one percent . In addition, Proposition 13 allowed for an increase for inflation of no more than 2 percent per year .
California property taxes compose of three types of levies.
Since Proposition 13 froze the statewide property tax rate at 1 percent plus a maximum of 2 percent per year between sales for inflation, the rates do not vary much. However, special district voter-approved assessments add small percentages to their property taxes.
In addition, the tax rate is only one of two components affecting the tax bill. The county assessment of the property’s value is the other.
Thus, the property tax bill is the result of multiplying the tax rate by the assessed value.
California determines assessed value by the property’s last sales price plus a maximum of 2 percent annual increases for inflation.
California property tax rates typically fall between 1.1 percent to 1.6 percent of its assessed value.
California Property Tax Calculator
California’s overall property taxes are below the national average. The average effective (after exemptions) property tax rate in California is 0.79%, compared with a national average of 1.19%.
The California Property Tax Calculator provides a free online calculation of one’s property tax. Simply type in the property’s zip code and select the assessed home value. Instant results include the “Average Tax Rate Percentage” and the annual “Property Tax”. Also includes the average property tax rate in the specific county, the State of California, and nationally.
San Diego County
The San Diego County Treasurer – Tax Collector website provides an online payment system for property owners to determine their property tax and pay their tax bill online.
Property owners can easily search their tax bill by inputting their mailing address, parcel/bill number, or unsecured bill number. Then, they view the bill and select the installment and add it to their shopping cart for payment.
In addition, the San Diego County Tax Collector site provides a link to a private vendor called ParcelQuest which provides free information from the San Diego County Assessor’s Office.
Los Angeles County
The Los Angeles County Assessor provides useful information explaining California property taxes on its website .
In addition, their website provides a Supplemental Tax Estimator calculator for Los Angeles County property owners. T his provides estimated taxes for a recently purchased property.
California property taxes explained here includes Proposition 13 and the Supplemental Tax rates. In addition, the homeowner’s exemption along with Propositions 58 and 193 for family members exceptions also explained. Seniors under Propositions 60 and 90 also obtain exceptions.
Finally, links to San Diego and Los Angeles county assessors websites along with free calculators of the California Property Tax and the Supplemental Property Tax also provided.
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