South Lake Tahoe is a fantastic place to own a home. The lake and mountains create a scenic location with much to offer. However, you can’t forget about property taxes when buying property. Learning about California’s property tax system is critical if you’re new to the state. This post will cover the basics of property taxes in California for South Lake homebuyers.
Lake Tahoe Real Estate Market Watch
As of October 2024, the median price per square foot of homes in South Lake Tahoe was $537. However, Lake Tahoe real estate trends are constantly changing. Contact Michelle Keck for help buying and selling homes in the Lake Tahoe region.
What Buyers Need to Know About Property Taxes in California
Property Taxes on Assessed Value
California bases property taxes on the assessed value, not the market value. When you buy a property, the county assessor sets a base value for the assessments. The base value is typically the purchase price. However, the assessor may set a base value if the purchase price is not close to market value.
After the base year, the property’s assessed value will increase equal to inflation. The mark for inflation assessors use is the California Consumer Price Index. However, California’s Proposition 13 sets a 2% limit on increases to assessed value, so your assessed value can only increase up to 2%, no matter how high inflation increases. Knowing that the base value resets for a new owner when a property sells is also essential.
California Property Tax Rates
California has a base property tax rate of 1% on the assessed value. However, the actual rate you’ll pay may be slightly higher. Counties and cities may have additional charges such as local bonds, special assessments, and fees. The effective tax rate in El Dorado County during 2024 was 0.87%. That is because the assessed value of most properties is below the market value.
Property Tax Exemptions
The state offers various property tax exemptions to reduce the costs of homeownership. The most common is the homeowner’s exemption. This exemption can reduce the property’s assessed value by up to $7,000. However, you must apply for the exemption with the county assessor, and this exemption is only available for a primary residence.
Payment Dates
Property owners can pay their taxes in two installments. The first is due from November 1 to December 10, and the second is due from February 1 to April 10. Homeowners can make both installments at once during the first payment period. Late payments may be subject to a 10% penalty. Paying your taxes at the earliest date helps avoid penalties.
Making Payments
South Lake Tahoe homeowners will pay the El Dorado County Tax Collector. You can pay at the tax collector’s office or mail a check. There are also options for paying your property taxes online. Depending on the payment method, online transactions may have additional fees.
Find Your Dream Lake Tahoe Property Today!
Are you ready to elevate your lifestyle with a Lake Tahoe property? Contact Michelle Keck for exceptional service and local insights. She can help you achieve your goals with Lake Tahoe real estate.
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