Wednesday, February 19, 2025

Understanding Property Taxes in California: What Homeowners Need to Know

 By Sudarsan Pattabiraman (Real Estate Broker) | 510.944.5616 | sudarsan@upclinch.com

Understanding Property Taxes in California: What Homeowners Need to Know

Property taxes are a major cost of homeownership, and in California, they can be complex. Whether you’re buying your first home, investing, or selling, knowing how property taxes work helps you plan ahead.

Key Property Tax Basics

  1. How California Property Taxes Are Calculated – Thanks to Proposition 13, your home’s taxable value is based on the purchase price, with annual increases capped at 2%. This helps homeowners avoid sudden spikes in taxes.
  2. Supplemental Taxes After a Home Purchase – Buying a home triggers a supplemental tax bill, recalculating your tax liability based on your purchase price. Many buyers are surprised by this extra cost, so be prepared.
  3. Tax Exemptions & Savings – California offers tax breaks like the Homeowners’ Exemption, reducing taxable value by $7,000. Seniors and disabled homeowners may also qualify for additional savings.
  4. What Sellers Need to Know – Selling a home doesn’t erase your tax obligations. Be sure to settle outstanding taxes and check if you owe capital gains taxes on profits from the sale.

Understanding property taxes ensures there are no surprises in your real estate journey. For personalized real estate guidance in Sacramento, reach out to me, Sudarsan Pattabiraman. Let’s make your transaction smooth and stress-free!

Contact Sudarsan for planning and idenitfying your perfect home / Investment acquisition. Schedule time to unlock your asset’s untapped value and realize it for the benefit of you and your family. Email:sudarsan@upclinch.com   Phone: 510.944.5616

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