Tahoe Real Estate – How much will my property taxes be?

Tahoe Real Estate – How much will my property taxes be?

Tahoe Real Estate – How much will my property taxes be?Once a Tahoe buyer has found the right Tahoe lakefront property, home, cabin, or condo to buy, one of the most common questions I’m asked is “How much will my property taxes be on my Tahoe real estate?”

While I am not an accountant, or tax professional, for general planning/budgeting purposes, in the greater Tahoe City – Truckee, California areas, a buyer can generally expect their first year of property taxes to be approximately 1.25% of the purchase price.  Some agents go a little higher, some a little lower, but I’ve found that for planning purposes, using 1.25% of the purchase price is a reasonable number for our area.  The breakdown is as follows:

1% of the real estate purchase price (California Proposition 13)

Add an additional 0.25% for additional tax payer approved measures such as education, fire, and other local public programs, for a total of 1.25% of the purchase price. 

Tahoe Real Estate Example:

Purchase price of the Tahoe cabin is $500,000

Property taxes for the first year should be about $6,250, or 1.25% of $500,000. 

California Prop 13 does allow for the underlying property value to be increased by 2% each year. That means that after the first year a Tahoe property owner could see the base value of the property increase, which means the total tax bill will also increase.

Our $500,000 Tahoe property in year one could become $510,000 the next year (2% increase in the base value of $500,000). That means the property tax would be 1.25% of $510,000, or $6,375 in year two.  The following years could follow a similar formula.  An increase in the property tax over the first year due to the escalation property value clause is also something a California Tahoe Buyer should plan for.

Tahoe Real Estate – How much will my property taxes be?If the Tahoe real estate you are buying currently has a lower tax basis than the purchase price you are paying, you’ll get a supplemental tax bill about 90 days after you have closed escrow. So be prepared for that extra bill and payment.

If you are buying a property that has a higher tax base than what you are paying, you’ll receive a tax notice that gives you have a tax credit, and they will apply that towards your next tax bill.

If a buyer needs an exact property tax amount for the Tahoe real estate they are purchasing, or if they need tax planning advice, I always recommend speaking to a tax professional.

Lake Tahoe, California Real Estate property taxes.

Lake Tahoe Homes for Sale

Lake Tahoe, California Condos for Sale

Lakefront Homes for Sale - Lake Tahoe, California

Tahoe Luxury Real Estate for Sale

For all of your Tahoe real estate needs – Laura Allen, 530.414.1260, Broker Associate, REALTOR®, CRS, ABR®, RSPS, ePRO, Previews Property Specialist,  Laura@TahoeLaura.com  DRE# 01473598 www.TahoeLauraLuxuryHomes.com,  Coldwell Banker Residential Brokerage, Tahoe City, California.

Tahoe Real Estate – How much will my property taxes be?

Originally posted at:  Lake Tahoe / Truckee, California Luxury Real Estate for Sale: Tahoe Real Estate – How much will my property taxes be?

Share Button
Laura Allen, Tahoe REALTOR, 530-414-1260, Cal BRE# 01473598 (549 Posts)

Welcome to Lake Tahoe! As a local Tahoe Real Estate Agent, Broker Associate, Tahoe REALTOR, with the regional real estate leader, Coldwell Banker Residential Brokerage in Tahoe City, California. I work with both buyers and sellers in helping them reach their Tahoe real estate goals. Whether you are buying, selling, or are just interested in Lake Tahoe I hope you'll find this local Tahoe real estate and local information blog interesting and helpful!