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What Newcomers to San Diego can Expect from San Diego Property Tax

Did you know that in 1978, California had what was called a “Tax Revolt” against property taxes?

The 1978 Tax Revolt still affects taxes in California today. If you’re thinking about relocating to San Diego, you’ll be happy to know that it was directly responsible for a significant reduction in taxes.

San Diego property tax is no exception to the low property taxes that Californians enjoy. But there are some other aspects to your property tax calculation that you should know about.

Keep reading to learn more about the San Diego property tax rates and how they’re calculated.

California Property Tax

The average property owner in California paid 0.81% property tax in 2017. Compared to the national average of 1.19%, Californians enjoy a relatively low rate for their property taxes.

The Tax Revolt in 1978 led to the passing of Proposition 13. There are two components of Proposition 13 that keep property tax rates lower than the national average.

According to Proposition 13, property taxes are based on the market value of the property at the time of purchase. The law also restricts the reassessment of a home’s value every year.

However, there may be other taxes collected depending on where you live in California. We’ll explain the calculations for property tax in San Diego in more detail below. 

Calculating San Diego Property Tax

There are three main components to your San Diego property tax bill. There’s the base tax rate, which is regulated by Proposition 13. On top of that, you may also have to pay voter-approved bonds and any fixed charge assessments.

Base Tax Rate

In San Diego, property tax is paid “ad valorem”. That means “according to value”.

In plain old English, ad valorem means you pay your property tax according to the value of your home when you bought it. The higher the value of your home, the greater the taxes you’ll pay.

The purchase price of your home is the demarcation for your home’s value. Every year, you pay 1% of that value in property taxes. At the same, the annual increase in your home’s value cannot exceed 2%.

These limitations on your base tax rate set by Proposition 13 means your San Diego property tax is usually lower than the market value.

Voter-Approved Bonds

Although your base property tax is limited to 1% of your home’s value, which can’t increase by more than 2% annually, there may be additional charges. Taxes falling under voter-approved bonds cover things like parks, community services, and schools in San Diego

Taking voter-approved bonds into account, the property tax in San Diego usually falls between 1.02% and 1.19%. The bonds that you pay will depend on the community in which you live. You can find them listed individually on your property tax bill.

Fixed Charge Assessment

Fixed charge assessments are also listed individually on your property tax bill. These usually cover county services. They can also be Mello-Roos, which are Community Facilities District fees.

Property owners vote on Mello-Roos taxes. Special districts use them to find things like public works, services, and community improvements.

Relocating to San Diego?

Thanks to Proposition 13, the San Diego property tax is much lower than the national average. The base tax rate of San Diego is 1% of your home’s value. But even with additional charges such as voter-approved bonds and Mello-Roos, most San Diego property owners pay a max of 1.19%.

But taxes aren’t the only reason to move to San Diego. Contact us to hear more about the incredible properties available here.