California Real Estate Tax
California has some of the highest property taxes in the country. In fact, the average property tax bill in California is over $4,000 per year. This can be a significant financial burden for homeowners, especially those on a fixed income.
There are a number of strategies that homeowners can use to reduce their California property tax burden. Here are a few of the most common:
Proposition 13: Proposition 13 is a California law that limits the amount of property taxes that can be assessed on a home. The law was passed in 1978 and has been in effect ever since. Under Proposition 13, the assessed value of a home can only be increased by 2% per year, regardless of how much the market value of the home increases. This means that homeowners can lock in their property taxes at a lower rate, even if the value of their home increases significantly.
Homestead Exemption: The homestead exemption is a California tax break that homeowners can claim to reduce their property taxes. The exemption is worth up to $7,000 per year and can be claimed on a primary residence. To qualify for the homestead exemption, homeowners must meet certain income and residency requirements.
Senior Citizen Exemption: The senior citizen exemption is a California tax break that homeowners over the age of 65 can claim to reduce their property taxes. The exemption is worth up to $5,000 per year and can be claimed on a primary residence. To qualify for the senior citizen exemption, homeowners must meet certain income and residency requirements.
Disability Exemption: The disability exemption is a California tax break that homeowners with disabilities can claim to reduce their property taxes. The exemption is worth up to $4,000 per year and can be claimed on a primary residence. To qualify for the disability exemption, homeowners must meet certain income and residency requirements.
In addition to these strategies, there are a number of other things that homeowners can do to reduce their California property tax burden. For example, homeowners can make sure that they are up-to-date on their property taxes and that they are claiming all of the exemptions and credits that they are eligible for. Homeowners can also contact their local tax assessor's office to see if there are any other programs or initiatives that can help them to reduce their property tax burden.
By taking advantage of the strategies and programs that are available, homeowners can significantly reduce their California property tax burden. This can save homeowners a significant amount of money each year and can help them to stay in their homes longer.
Here are some additional tips for California homeowners who are looking to reduce their property taxes:
Get a home value appraisal: The assessed value of your home is used to calculate your property taxes. If your home has increased in value significantly since you purchased it, you may be able to get a reduction in your assessed value by getting a home value appraisal.
Make improvements to your home: Improvements to your home can increase its value and can also lead to a reduction in your property taxes. However, it's important to note that not all improvements will qualify for a reduction in property taxes. You should consult with a tax professional to see if the improvements you are considering will qualify.
Take advantage of tax breaks and exemptions: There are a number of tax breaks and exemptions available to California homeowners. You should consult with a tax professional to see if you qualify for any of these breaks or exemptions.
Consider refinancing your mortgage: If you have a high-interest mortgage, you may be able to save money on your property taxes by refinancing your mortgage. However, it's important to compare interest rates and fees before you refinance.
Talk to your local tax assessor: Your local tax assessor may be able to offer you advice on how to reduce your property taxes. They may also be able to help you apply for tax breaks and exemptions.
