Property Tax
Nationally averages between 1 and 2 percent of a home’s value but may vary by county.
In the state of California, property tax is governed by California Proposition 13, which is a very specific formula, which starts property tax at 1% of the purchase price, or transferred value, with the right to increase the underlying value of the property by 2% each year there after.
There is a special provision for market value decline and how that is done and how the property is moved up in value once the market conditions change.
Each county may also have additional tax payer passed additional property tax add-ons, putting the total tax above the 1%.
In the greater Tahoe area, typically a buyer can use an estimate of 1.25% of the purchase price to determine the first year of property taxes for homes located in El Dorado, Placer, and Nevada counties in California.
Unlike other states, California does not re-value properties to current market value each year – Prop 13.
For more information consult a tax professional, or the county assessor for more specific tax information and guidance.
Addition information:
How much will property taxes be on my Tahoe Second Home?
