Property taxes in California can feel like a weight on your finances. Every year, that bill shows up, and you’re left wondering if you’re paying too much. The good news? There are ways to legally lower your property taxes without jumping through endless hoops. The tax system isn’t built to give you refunds. If you don’t ask, you don’t get it. But if you know what to look for, there’s a good chance you’re overpaying. Here’s how to make sure you’re not leaving money on the table.
Why Are Property Taxes in California So High?
California calculates property taxes based on Proposition 13. This law keeps the base tax rate at 1% of your home’s assessed value, Tips to Reduce Your Property Tax Bill in California Even though your property taxes can’t jump more than 2% per year, home values in California shoot up faster than that.
That means if you bought your home in a high market or if the county overestimated your home’s value, you’re probably paying more than you should.
How to Reduce Your Property Taxes in California
If you’re serious about lowering your tax bill, here’s what actually works:
1. Check Your Property’s Assessed Value
Your tax bill is based on your home’s assessed value, not its market value. If the county has overestimated your home’s value, you’re paying extra for no reason.
Here’s how to check:
- Compare your home’s assessed value (found on your tax bill) with recent sales of similar homes in your area.
- Look for errors in the property records. Incorrect square footage or outdated renovations could inflate your assessment.
- If the numbers don’t add up, you can file an appeal.
Real example? A homeowner in Los Angeles noticed their assessment was based on a home 500 square feet larger than theirs. A quick fix saved them over $1,500 per year.
2. File a Property Tax Appeal
If your home’s value is incorrect, you can challenge it. The California Board of Equalization allows homeowners to dispute their property assessments. The deadline varies by county, so check with your local assessor’s office.
The process:
- Gather evidence—comparable home sales, errors in records, or professional appraisals.
- Submit an appeal to your local County Assessor’s office.
- Prepare for a potential hearing to make your case.
Most California homeowners who appeal their assessments successfully lower their tax bills, but you have to be proactive.
3. Apply for a Homeowner’s Exemption
California offers a $7,000 homeowner’s exemption for primary residences. It doesn’t sound huge, but it knocks $70 off your tax bill every year. If you haven’t applied yet, download the form from your county assessor’s website and submit it ASAP. It’s a one-time application, but check annually to make sure it’s applied.
4. Check for Other Property Tax Exemptions
You might qualify for other exemptions, like:
- Senior Exemption: If you’re 55+ and moving within California, Prop 19 could let you transfer your old home’s tax base to your new home.
- Veterans’ Exemption: Disabled veterans might qualify for reductions.
- Disaster Relief: If your home was damaged by a wildfire or earthquake, you could get temporary tax relief.
5. Look Into Prop 60 and Prop 90
Proposition 60 and Proposition 90 allow homeowners over 55 to transfer their property tax base to a new home, but there are restrictions. Your new home must be in a participating county and must be of equal or lesser value.
FAQs
Can I really lower my property taxes in California?
Yes. If your home’s assessed value is too high or you qualify for exemptions, you can reduce your tax bill.
How do I check if my property is over-assessed?
Compare your home’s assessed value with recent sales in your neighborhood. If homes similar to yours are selling for less, you could have a case for a lower tax bill.
How do I dispute my property tax assessment?
File an appeal with your County Assessor’s office, submit evidence, and be prepared to present your case.
What is the deadline for filing a property tax appeal in California?
It varies by county, so check with your local assessor’s office.
Conclusion
Paying too much in property taxes isn’t a necessity. Stay informed, check your assessment, and don’t be afraid to challenge incorrect values. That’s how you keep more money in your pocket.“`