Property taxes in California are calculated by multiplying the value of the property by 1%. This is then added to the supplemental tax charges instituted by the individual's county.
How Property Taxes are Calculated in California?
- Property taxes are calculated based on the Article XIII A of the California Constitution (proposition 13).
- For the first year, the property tax is calculated by multiplying the value of the property by 1%.
- Subsequently, the property value is changed by the tax assessor based on the inflation rate and then multiplied by 1%.
- However, counties have supplemental taxes which are based on the rate agreed by the voters in the county.
Property Tax Exemptions in California
Disabled veterans or spouses of dead disabled veterans are allowed to have an exemption of $100,000 on the main residence of the veteran. The exemption can be as high as $150,000 if the applicant qualifies for the $40,000 income limit.
Tribal housing units which cater for low-income communities and built for nonprofit purposes are also exempted from a property tax.
Property tax is reduced by $7,000 if the home is the owner's main place of abode. Personal property such as furniture, hobby equipment are exempted. No filing is required for the exemption.
Properties which are used solely for church religious worship are exempt. However, an annual filing is required. Public libraries and museums are exempted from property taxes provided they always give free access to the general populace. The Board of Equalization and the county assessors of California grant eligible charitable organizations welfare exemption with regard to properties owned by them.
Property Tax Payment Cycles in California
Property taxes are usually paid in two installments in California:
- The first installment period spans from July 1 to December 31, and the deadline for payment during the first installment is December 10.
- For the second installment, the deadline is April 10. The installment period spans from January 1 to June 30.
Reduction in property taxes is made available in form of partial exemptions to owners living in their property, disabled veterans and spouses of late disabled veterans.
Pay your Property taxes in California online here.