The process of investigation for determining the construction of property tax bill for an individual property is covered below:
"Estimating Property Taxes in CA"
Property tax is generally about 1.25% of the purchase value of the property to start. Proposition 13 caps the yearly increase in the tax rate. Other tax laws have actually provided for reductions in property tax for some owners whose properties have declined in value. Those reductions will be wiped out as the property values grow back to and surpass their formal levels over time.
There are may be substantial differences if the property is inherited or if it is purchased by someone who is over 55.
Check the Santa Clara County Assessorâ€™s website at https://www.sccassessor.org/ for additional pertinent information.
My colleague is correct. Annual property tax is always calculated at 1.25% of purchase price.
So on $1mil it would be $12,500/yr or $1,041.66/mo
$1.5mil would be $18,750/yr or $1,562.50/mo
$2mil would be $25,000/yr or $2,083.33/mo
There may be other exception, but the only one I am aware of would be if you or your partner/spouse would be over 55 yrs of age at the the time of the sale of an existing home in Santa Clara County (SCC) which is of equal or higher value than the home you are buying, then you will transfer the tax basis of that home to the new one. So it you had lived in SCC for 20yrs and were selling a $1.5mil home that because you had owned for so long had a tax basis of $300/mo. as long as your new home was $1.5mil or less, it also would maintain that $300/mo property tax rate. If you bought a home for just $1,000 more you would pay $1,562/mo... so being aware of this tax law would save you over $1,300/mo or over $15,000/yr !!!!
The same tax basis transfer is available once in a lifetime when moving from one home to another because of physical disabilities.
You can learn more about Proposition 60 and 90, at my Blog http://www.GetRealRealtor.com
or by calling me, Stu at 408-209-0849
Property Tax is approx 1.25% Per Annum, of PURCHASE Price of the home....whatever it is...within Santa Clara County, and this is paid in 2 Instalments annually, in Nov & Jan......
Pls do contact me and I can send you any other infp needed.
Be well and safe, regards,