If you're buying or already own property in the Bay Area, it's essential to understand how property taxes work. While California's property tax system may seem straightforward at first glance, there are a few key details—especially in Santa Clara, San Mateo, and Alameda counties—that every homeowner or buyer should know.
California property taxes are governed by Proposition 13, passed in 1978. Here's how it works: Your property tax is based on the assessed value of your home. When a property is purchased, it is typically reassessed at the purchase price, which becomes the new base year value. While the base tax rate is 1%, most Bay Area homeowners pay closer to 1.25% due to voter-approved local assessments and special district fees, which vary by area.
Example: If you purchase a home for $1,500,000, your annual property tax will likely be around $18,750 (1.25% of the assessed value).
Annual increases are capped. Under Prop 13, the assessed value of your home can only increase by a maximum of 2% per year, regardless of how much your home's market value goes up. This provides a predictable tax bill for long-time homeowners, which is one reason California has relatively low property taxes compared to market values.
Watch for the supplemental tax bill. When you buy a home, you may receive a supplemental property tax bill. This is separate from your regular tax bill and reflects the difference between the previous owner's assessed value and your new purchase price. It’s a one-time adjustment and often catches new homeowners off guard. This applies to homebuyers in the Bay Area, and it’s important to be prepared for it.
Due dates matter. No Darn Foolin’ Around — it's how you remember property tax months! Taxes are due in two installments: the first is due November 1 (delinquent after December 10), and the second is due February 1 (delinquent after April 10).
Property taxes are public records. You can look them up anytime on your county’s website. If you're purchasing a home with a mortgage, your lender may collect your property taxes through an escrow account and pay them on your behalf.
To check your tax bill, assessment history, or parcel information, visit your county’s official tax website:
Santa Clara County: https://www.sccassessor.org/propertytax
San Mateo County: https://www.smcacre.org/property-tax
Alameda County: https://www.acgov.org/propertytax
Understanding how property taxes work in the Bay Area helps you plan your budget, avoid surprises, and make informed decisions—whether you're a first-time buyer, seasoned homeowner, or real estate investor.
If you're a Bay Area homeowner thinking about selling, understanding your property tax situation is an important part of your financial picture. As a local listing agent and property tax resource, I help sellers evaluate their net proceeds, plan for supplemental taxes, and make smart decisions when listing their home.
📞 Have questions about property taxes, market value, or preparing your home for sale or purchase? Contact me today for a personalized consultation.
