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
- 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.
- 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.
- 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.
- 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!
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