Property Tax Info

Property taxes in California are limited by Proposition 13, a law approved by California voters in 1978. The law has two important features. First, it limits general property taxes (not including those collected for special purposes) to 1% of a property’s market value. And secondly, it restricts increases in assessed value to 2% per year. Those two rules combine to keep California’s overall property taxes below the national average. The average effective property tax rate in California is 0.79%, compared with a national average of 1.19%

California property taxes are based on the purchase price of the property. When you buy a home, the assessed value is equal to the purchase price. From there, the assessed value increases every year by the rate of inflation (change in the California Consumer Price Index), with a cap on increases of 2%.

This means that, for homeowners who have been in their house a long time, assessed value is often lower than market value. The same is true of homeowners in areas that have experienced rapid price growth such as San Francisco and San Jose in recent years.

Homeowners in California can claim a $7,000 exemption on their primary residence. This reduces the assessed value by $7,000, saving you at least $70 per year. You only need to claim this exemption once and it’s important to do so shortly after you buy – the due date is Feb. 15.

Property taxes are applied to those assessed values. Each county collects a general property tax equal to 1% of assessed value. That general tax is the single largest tax, but there are other smaller taxes that vary by city and district. 

Voter-approved taxes for specific projects or purposes are common, as are “Mello-Roos” taxes. Mello-Roos taxes are voted on by property owners and are used to support special districts that finance services, public works or other improvements.

A good rule of thumb for California home buyers who are trying to estimate what their property taxes will be is purchase price x 1.25%. This incorporates the base rate of 1% and additional local taxes, which are usually about 0.25%.

Testimonials

What our Clients Say About us

Foreclosure Homes Silverlake
I believe that Ken was very professional and aggressive when it came to negotiating the deal. I have used Ken many times with the purchases or sale of my homes Ken is great at following through with every detail of the transaction. I highly refer him to anyone that wants a good realtor.
by Dan Maravilla
Condos Brentwood
Dear Ken, Chris, Peggy & Crew You are so thoughtful and kind. We are thrilled to be moving into our new home…something we didn’t see happening for quite some time. Thank you so much for jumping through hoops for us! We will be forever grateful!
by Kelly & Joseph Konopelski
Real Estate Santa Monica
We recommend Ken as he was very professional in dealing with the sale of my home that was listed with him. We were very pleased with the transaction of buying my new home with. We think the service he gave my wife and I was perfect. We would recommend him highly.
by Trenton Harrloe
Ranch and Farm Properties Westlake Village Hills
Working with Ken was extremely easy and he was very approachable when any questions or concerns were raised. He is very professional and does not waste time. When my husband and I would meet with him he would always make sure to go through all of the paperwork with us in a timely fashion (which can be tough when signing a thousand different documents). We really enjoyed working with Ken and could tell he was a very trustworthy individual.
by Claire Hastings
Condos Westlake Village Hills
For us Ken Grech is one of the best all around. He is honest, trustworthy, and very knowledgeable with property. I would never buy from any other person ever! This is our second time around with Ken and hopefully he will be their for our 3rd. Everyone knows it's always stressful selling / buying property, but with someone like Ken Grech on your side it becomes a great experience. It becomes easy when you have someone looking out for your best interest. We appreciated everything you did for us Ken.
by Alaysia Jennings
Condos Woodland Hills
Ken is an excellent realtor. He did an incredible job selling our house in 3 days during a pandemic. His attention to detail and his outstanding communication skills put him at the top. We were so impressed with his hard work and dedication that we are recommending him to all of our famjly and friends. It was a pleasure working with him. He knew we were nervous about leaving our home of 24 years and moving to a new state so he helped facilitate connecting us to a great realtor in the state we were moving to. He also researched nice areas in the new state to recommend to us. He helped us from start to finish. All of his help and guidance made the transition so easy. Working with Ken was a pleasure. He was there for us from the begining til the end. He met all of our expectations and guided us through the whole process with his expertise. It was a smooth and stress free transition because of Ken.
by Kylie Underwood
TownHomes Ventura Hills
Ken acted in a professional manner. I was very impressed with his knowledge of real estate, He read the sales data of surrounding homes perfectly, leading to my home to be sold on its first showing for higher than its listing price.
by Teresa Richard
Golf Course Homes Ventura Hills
Ken was on top of the deal all the way through. If you want an local area expert in real estate we highly recommend working with Ken. This was a very easy sell/buy experience and we are more than pleased with Ken's performance. Had it not been for his local knowledge, we likely would not have been able to purchase the beautiful Morrison Highland Estates house that we did. Ken is a true professional.
by Simon Barrett
Ranch and Farm Properties Valencia
Ken Grech did a wonderful job of making us feel we were in good hands with his leadership. I would definitely use his expertise in any further real estate transaction.
by Lauren Bradley
TownHomes Thousand Oaks
We met Ken at an open house and he seemed kind and knowledgeable. Ken was very valuable in the selection of a great neighborhood for our daughter to grow up in. All communications and documentation was very timely. Ken handled any problems that came up during the escrow period. Ken is very polite and cares for his clients and their future home. Ken made the whole process easy.
by Quincy Sampson
Rodeo Real Estate Agent
BUYING A HOME?
BUYING A HOME?

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Realtor Hollywood Hills
SELLING A HOME?
SELLING A HOME?

The longer your home is on the market, the less you will make. Learn what we do that nets you more.

Real Estate Agent Bel Air

Kenneth Grech

Real Estate Agent

Simi Valley | California

1308 Madera Rd Suite 8,
Simi Valley CA 93065
DRE#01328727

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