In California, the state property tax rate is 0.81% based on the purchase price. Counties and cities can, and do, add to that based on increases approved by taxpayers for local parks, fire districts, and schools. In general, plan on your annual property tax to be a little over 1% of the purchase price. Then, they adjust the tax for inflation at no more than 2% a year. The actual current value of the home has nothing to do with your tax rare after the purchase. This keeps people from no longer being able to afford your home due to increases of property value that you have no control over.
I purchased my current house last year for $935,000. My annual property tax was around $11,000.
Is this why CA is so screwed up? Seems like a great deal. Anyone on the east coast is paying the same for a house worth half as much.
In Illinois you can get a homeowners exemption - I think it has to be on your primary residence. Then there is an exemption for being 65 or older. Lastly there is a senior citizen assessment freeze, but you have to be over 65 and prove household income less than $65,000 to get it.
In California you can get a $7,000 exemption on your primary residence. This does not extend to second homes or investment properties. When you sell your home to buy a new home, you also get the exemption for either your old house or your new house for that calander year, not both.
In California, the state property tax rate is 0.81% based on the purchase price. Counties and cities can, and do, add to that based on increases approved by taxpayers for local parks, fire districts, and schools. In general, plan on your annual property tax to be a little over 1% of the purchase price. Then, they adjust the tax for inflation at no more than 2% a year. The actual current value of the home has nothing to do with your tax rare after the purchase. This keeps people from no longer being able to afford your home due to increases of property value that you have no control over.
I purchased my current house last year for $935,000. My annual property tax was around $11,000.
Is this why CA is so screwed up? Seems like a great deal. Anyone on the east coast is paying the same for a house worth half as much.
I'd argue that California is not screwed up. The way this is set up at least you know that your property taxes won't skyrocket to a level where you can't afford it due to rise in property values. Many retirees couldn't afford their property taxes on their houses that are worth $2 million in a place like San Jose when they bought the house for $150,000 30 years ago. It makes sense.
But fear not. California also has income taxes (rates can be up to 13.3% for highest earners), sales taxes (7.25%, although cities and counties can add to it, so it could be as high as 10.5%), property taxes on vehicles, and gas taxes. I've read that California's tax burden is somewhere between the 6th to 10th highest in the country, depending on who you believe. Although California seems to have a reputation of being broke, that is kind of old news. Since the Democrats took the supermajority about a decade ago, the government has run much more smoothly without the annual threats of government shutdowns and state park closures. Governor Brown, dispite his reputation, is somewhat of a fiscal conservative and has held back some additional spending some Democrats have wanted in favor of putting away for a rainy day.
