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5 Things You Should Know About Property Tax in California

5 Things You Should Know About Property Tax in California

There are over 14 million homeowners in California.

Whether you are a current homeowner in California or you're thinking about becoming a homeowner, there are things that you need to know specific to California. There are different kinds of tax and property management rules in the state.

So what should you know about property tax in California? Keep reading this guide to learn five important things to know about property taxes in the state.

1. One of the Largest Taxes

Property tax in California is one of the largest taxes that a California person will pay.

The tax rate sits at about .71%. Although the national average is .99%, this still tends to be the biggest tax that Californians pay in terms of the overall amount of money paid toward this specific tax. The maximum property tax rate is 1% throughout all of California.

2. Property Tax Exemptions Are Available for Some

As a homeowner, you may be able to apply for a tax exemption. You may be exempt if you fall under any of the following categories:

  • If you are a disabled veteran
  • If you are a homeowner over the age of 65
  • If you are a homeowner who has been affected by a natural disaster

If you qualify for one of these categories, this tax exemption can help reduce the property tax burden that you may be feeling. This can help you save a lot of money.

3. Proposition 13

Proposition 13 in California limits the property tax increases that the government can apply to homeowners. It was a law passed in 1978 that limits property tax increases. The state is not allowed to increase the taxes by more than 2% per year even if the property value increases more than that.

However, it is important to note that if ownership changes, the property can be reassessed at the current market value.

4. Taxes Based on the Value of Property

In California, property taxes are based on the value of the property rather than a set rate. The assessment will take the value of the property and then determine the taxes based on any adjustments needed for inflation.

5. There Is an Appeal Process

There is also an appeal process that homeowners can take if they disagree with their property tax assessment. If they feel that their property has been overvalued, they are able to discuss it with an assessment appeals board. From there, the board will review the assessment and determine if it is the correct value or not.

Property Tax in California

Now that you know more about property tax in California, you may feel better about buying or selling a property in the state.

If you feel that you are ready to get started with buying a property - whether an investment property or one you want to purchase for yourself, we are here to help you.

Contact us at Blue Line Property Management to get started.