Home Buying in California>Question Details

Steve, Other/Just Looking in Michigan

What will be my property tax in Orange County, CA for a home purchased way below the current market value?

Asked by Steve, Michigan Wed Jan 2, 2008

I am going to purchase a foreclosed home in Orange County, CA. The home has an estimated market value of $550K. If I purchase the home for much less than that, let's say $400K, will my property tax be based on the purchase price or the market value? Assume the home will appraise at $550K.

Help the community by answering this question:


Initially your tax is based on the sales price, but the assessor can send you a supplemental tax bill, and can reassess you at a higher "market value."
1 vote Thank Flag Link Wed Jan 2, 2008
Steve ... your question about property tax for a home purchased at OC, California, is interesting.

Our property taxes here are guided by California Proposition 13 passed during 1978, which limits assessed value to be increased no more than two percent per year, and that property tax would be one percent of assessed value. The amount of appraisal does not go into that equation.

So if you buy a home at The OC for $500,000, your appraised value of the home after purchase would be $500,000, and your annual property tax would be $5,000 (plus special small assessments like vector control district and schools).

Best wishes to you and your family.
Harrison K. Long, Explore Group Properties, Coldwell Banker Previews.

For a good property search site check out
0 votes Thank Flag Link Fri Jan 30, 2009
Your property tax is based on what you pay regardless of what it appraises for.
0 votes Thank Flag Link Sun Oct 5, 2008
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