Taxes -

Property Taxes - General information

How Property Taxes are Determined: Property taxes are governed by California State law and collected by the county. The County Assessor must first assess the value of your property to determine the amount of property tax.

Generally, the assessed value is the cash or market value at the time of purchase. This value increases not more than 2% per year until the property is sold or new construction is completed.


The Auditor-Controller applies the appropriate tax rates, which include the general tax levy, locally voted special taxes, and any city or district direct assessments. The Tax Collector prepares property tax bills based on the Auditor Controller’s calculations, distributes the bills, and then collects the taxes.

Property Taxes

  • Property Tax Defined

    Property Tax Defined


    Local governments, usually at the county level, administer property tax. Tax rates vary from county to county and are based on a predetermined percentage of the assessed value of each individual property. Property taxes are paid in two installments each year.

  • Property Tax and Escrow

    Property Tax and Escrow


    Payment of property taxes for closing escrow varies depending upon when the buyer closes escrow. If the buyer’s home is in escrow right after a deadline for submitting a tax payment, the real estate professional should request proof of that payment from the seller. The preliminary report may show that property taxes are still due because it can take up to six weeks or more for a property tax payment to post on the records; proof of payment will address this issue.

  • Property Tax Payment

    Property Tax Payment


    The escrow company identifies how property taxes are to be paid at the close of escrow. During the buyer’s discussion with the lender, the buyer will either opt to pay the property tax and insurance costs on a monthly basis (called an impound account) or pay them directly when due. The initial impound account payment is collected through the escrow and then monthly by the lender with the mortgage, principal and interest payment. The lender pays the tax collector and the insurance company directly from this account when the property tax installments and insurance premiums are due.

  • Supplemental Tax

    Supplemental Tax


    The new homeowner may receive a supplemental property tax bill after the close of escrow; this supplemental tax is not and cannot be collected through escrow. Most property taxes are based on the assessed value of a home at the time of purchase. Typically, when there is a change of ownership, a supplemental assessment occurs. A new assessed value for the home may lead to an increase in the tax amount. To address any potential increase, the tax collector or assessor may mail the supplemental tax bill requiring payment from the new homeowner who is responsible for the difference.


    The supplemental bill is typically issued within six months after the close of escrow. Even if the buyer has an impound account with their lender to pay taxes and insurance on a monthly basis, the supplemental tax bill is sent directly to the buyer by the tax collector, rather than to the lender and must be paid. The homeowner should provide a copy of this supplemental tax bill to the lender after payment as such increase in the annual taxes may alter the amount of taxes due in the impound account for future taxes.

Below are the most common type of property tax bill samples: