California Property Tax Guide

When talking about real estate, you cannot disregard the reality of taxes. Depending on which state the home or building is built, there are different property taxes that are in effect. In the state of California, Alpine County registered the lowest taxes according to the 2014-2015 tax data. On the flip side, the San Bernardino County recorded the highest taxes. One factor that makes the biggest difference between the two are the respective population of the two counties.

Rural Alpine County only has a population of a little under 2,000 and collects only 1 percent in taxes, which is the state minimum. San Bernardino, on the other hand, has an average tax rate of 1.38 percent, which happens to be the highest.

California Property Tax

As Against National Tax Rates

Effective tax rates are used when comparing these state taxes against the national tax rates. Considering all of the states in the country, California is ranked 17th lowest with an effective property tax rate of 0.81 percent. The national state property tax rate average stands at 1.13 percent. The median rate, on the other hand, is at 1 percent. One can imagine the amount of tax paid on a Beverly Hills luxury real estate property.

California Property Tax1

Neighboring States Comparison

In comparison to its neighboring states, California’s effect tax property rate is lower at 0.81 percent. Arizona rates higher at 0.84 percent while Nevada is at 0.92 percent. Oregon, meanwhile, is the highest at 1.08 percent. This means that home buyers in California who has recently purchased a reassessed house may have to shoulder a higher amount in terms of tax rates compared to a home buyer who purchased a property in Oregon. It is important to note, however, that the home buyer will not be covered by the same level of tax increases.

Examples of Property Taxes in California

It is important to note that the property tax rates for new home buyers are different compared to those of their established neighbors. For example, if you bought a home today for $1 million, you will likely have to pay a higher tax bill compared to your neighbor who purchased his home for the same market value two decades ago for an amount of $250,000.  That value has increased annually at a rate of 2 percent. With that computation, the property is now at $371,500, with a state tax base amount of $3,715. You, on the other hand, are paying $10,000, which can be considered a significant difference between the two. This, however, has also sparked numerous debates and discussions on the fairness of California’s tax rates. If you are looking to purchase California properties contact a trusted Beverly Hill real estate agent today.


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