Finance & Tax
How do property taxes work for a new buyer in California?
Quick answer
In California, your property tax base resets to the purchase price when you buy. The typical base rate is about 1 percent, plus voter-approved local bonds and assessments.
The full answer
More detail, straight from Julian Cesar
In California, your property tax base resets to the purchase price when you buy. The typical base rate is about 1 percent, plus voter-approved local bonds and assessments. That means a home bought today carries a tax bill based on today's price, not what the previous owner paid. Your lender's estimate includes taxes and insurance so the monthly number is realistic.
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More Finance & Tax questions
Do I have to pay capital gains tax when I sell my home?
Most homeowners do not. If you have lived in the home two of the past five years, you can exclude up to $250,000 of gain, or $500,000 for married couples filing jointly.
Read the answer Finance & TaxWhat is PMI and can I avoid it?
PMI, private mortgage insurance, protects the lender when you put down less than 20 percent. You avoid it with a 20 percent down payment or by choosing a lender-paid or piggyback structure.
Read the answer Finance & TaxWhat is a 1031 exchange?
A 1031 exchange lets you defer capital gains tax when you sell an investment property and reinvest the proceeds into a like-kind property. Strict timelines and rules apply.
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Julian Cesar
Licensed Agent, CA DRE #02015349