How much are property taxes?
We live and work in California, so that’s what we know. And California property taxes are what we’re talking about here.
So how much are property taxes in California? The answer: 1.25%. If you’re buying a home for $1,000,000. You can bet that every year, you’ll have to pay $12,500 a year. That 1.25% includes the good old state of California and all the other little county charges, like school charges and mosquito abatement.
If you’re thinking of buying a particular home and you happen to look up what the owner pays in property taxes, it could be significantly less than you would pay if you bought the place. That’s because of California’s Proposition 13, which limits yearly increases in property taxes at 2%. That means that people who have owned their homes for thirty years pay a lot less than you will if you bought a place today since values have risen a lot more than 2% a year. So when you buy a place, factor in 1.25% for taxes. I
n the years to come, your property will be reassessed in terms of it’s value and your taxes could rise although not by more than 2%, or they could even go down if the property’s value went down.