What should I know about property taxes?
Get all the information you need to know about these taxes before you buy a home or invest in real estate.
They are a type of value tax — which means it’s calculated based on an assessment of the property’s value. These assessments are typically done when you purchase the home and based on the purchase price. The assessment includes the land and any improvements. These taxes are a major source of funding for your city and/or county. They fund schools, fire departments, libraries and more.
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.
When do you pay property taxes?
They are collected in two equal installments. The first installment, representing July 1st through December 31st is due on November 1st and delinquent on December 10th. The second installment, representing January 1st through June 30th, is due on March 1st and delinquent on April 10th.
Learn more about annual increases, California’s Proposition 13 and how much you should factor in for these taxes when buying a home.