SF Bay Area Counties & Property Tax Guide™
Pay your taxes:
Above image sourced from © Wikipedia
Annual Tax Bills - Due Dates:
Remember these due dates to pay your property taxes on time and avoid penalties.
California property tax bills are issued in two installments:
-
1st Installment
-
Due Date: November 1st
-
Late After: December 10th
-
Penalty: 10% of the unpaid tax, plus a $10 fee for the 2nd installment.
-
-
2nd Installment
-
Due Date: February 1st
-
Late After: April 10th
-
Penalty: 10% of the unpaid tax, plus a $10 fee for the 2nd installment.
-
-
Late Payment Penalties (After June 30th)
-
Additional penalty: 1.5% per month on any unpaid taxes.
-
-
Payment Plans:
If you're unable to pay property taxes in full by the due date, some counties offer payment plans. Contact your county’s assessor’s office for details on available payment options.
Tax Rate Information:
Understand how property tax rates are calculated.
-
General Property Tax Rate:
​-
Under Proposition 13, the property tax rate is capped at 1% of the assessed value of the property plus any voter-approved local taxes or assessments. The assessed value can increase by no more than 2% per year, regardless of fluctuations in the property's market value. This helps protect homeowners from large property tax increases caused by market value changes.
-
-
Additional Local Taxes:
-
In many counties, particularly in the SF Bay Area, there are additional assessments (including Mello-Roos taxes) that fund local services like schools, public safety, and infrastructure. These assessments are added on top of the base property tax rate and can significantly increase your total property tax bill.
(Note: Be sure to check for any local assessments in the area where you're buying a property, as they vary by location and can impact your overall cost of ownership.)
-
Tax Saving Tips:
Helpful ways to save on property taxes for California homeowners!
-
Homestead Exemption:
If you live in your property as your primary residence, you may qualify for a homestead exemption, reducing your taxable value.
(Note: The Homestead Exemption is automatically applied in California once you claim the property as your primary residence, but homeowners must file a claim with their county’s tax assessor to qualify for the exemption. Be aware that this exemption applies only to the assessed value of your home, not its market value. The exemption amount can vary by county, and in some counties, additional reductions may apply for seniors, disabled individuals, and veterans. Check with your local county assessor's office for specific eligibility requirements and to apply for the exemption.)
-
Seniors (62+):
Seniors can take advantage of Proposition 60 & 90 to transfer their property tax base to a new home of equal or lesser value, potentially saving on property taxes
-
New Construction Exemption:
Avoid property tax reassessment on minor home improvements by utilizing the new construction exemption.
(Note: "Minor" home improvements typically refer to renovations or repairs that do not significantly increase the overall value of the property, such as cosmetic upgrades or maintenance work like painting, installing new cabinets, or replacing flooring. Major additions or structural changes, such as adding a new room or building an extension, may trigger a reassessment.)
-
Claiming Energy-Efficiency Credits:
Claim your federal tax credit if you've purchased an energy-efficient system, like solar panels, to reduce your taxable value.
-
Appealing Property Tax Assessments:
If you believe your property has been over-assessed or if the market value of your home has decreased, you can appeal the assessment with your county's tax assessor to potentially reduce your tax liability.
-
1031 Exchange:
For real estate investors, a 1031 exchange allows you to defer taxes on the sale of real estate when reinvesting in another property.
(Note: The 1031 exchange is typically for investment properties and not primary residences.)
Additional Property Tax Considerations
-
Mello-Roos Districts
Many areas in California, especially newer developments, may be part of a Mello-Roos Community Facilities District. These districts impose additional property taxes for local services such as schools, infrastructure, and public safety. Be sure to check if the property is in a Mello-Roos district, as these taxes can significantly increase your overall tax bill.
-
Taxability of Personal Property
Personal property, such as business equipment, boats, and aircraft, is subject to property tax in California. If you own taxable personal property, ensure you file the necessary forms with the county assessor.
-
Inherited Property
Under Proposition 58, certain family transfers (e.g., parent to child) may allow you to keep the property’s original tax base, avoiding reassessment and higher property taxes. Consult a tax advisor for guidance on eligibility and the process.
-
New Construction & Renovations
Significant home improvements or new construction usually trigger a reassessment of property value, leading to higher taxes. Some exemptions, like those for seismic retrofitting or adding a granny flat, may help avoid reassessment.
-
Historic Property Tax Benefits
Owners of historic properties may qualify for tax benefits or reductions under California’s preservation programs, such as the Millennium Bond Program.
-
Tax Reassessments for Natural Disasters
If your property is damaged or destroyed due to wildfires, earthquakes, or other natural disasters, you may be eligible for a temporary reduction in your property’s assessed value. Contact your county assessor's office for information on how to apply for reassessment following a disaster.
Disclaimer:
The information provided on this page is for general informational purposes only.
Property tax rates, deadlines, and payment methods may vary by county and are subject to change. Please verify the details on the official county websites for the most accurate and up-to-date information. For personalized assistance, consult your county's Treasurer-Tax Collector office or a tax professional.
Ready To Move?
Move Into Your New Life Chapter™
Contact: 650-898-2348
Email: sfbayareasold@gmail.com