The Buyers and Sellers Guide to Los Angeles County Property Taxes
Understanding property taxes in Los Angeles can be a complex yet essential part of the home buying and selling process. This guide aims to clarify the key aspects of property taxes in Los Angeles County, helping you make informed decisions.
Current Property Tax Rates
In Los Angeles County, the median property tax rate is 1.24%, which is notably higher than the national median of 0.99% and slightly above the California state median of 1.21%. With the median home value in Los Angeles County, the typical annual property tax bill averages around $5,343, exceeding the national median of $2,690.
How Property Taxes are Calculated
Property taxes in Los Angeles County are based on the assessed value of the property, which often falls below the actual market value due to various exemptions, such as those for primary residences and agricultural properties. By understanding these exemptions and identifying potential opportunities for reductions, you can achieve significant savings on your annual tax bill.
Important Due Dates
California property taxes are due in two installments:
First Installment: Due November 1, delinquent after December 10.
Second Installment: Due February 1, delinquent after April 10.
It’s crucial to keep these dates in mind to avoid any late fees.
Who is Responsible for Property Taxes?
According to California law, the property owner on January 1 of the tax year is responsible for that year’s property taxes until the close of escrow. After closing, the new owner will take on prorated taxes based on the purchase price.
Understanding Your First Property Tax Bill
When you purchase a home, your initial property tax bill may not reflect what you will owe moving forward. It may be based on the seller’s previous assessed value, which can be considerably lower than your purchase price.
Example: If you buy a home for $1.5 million, your first tax bill might reflect a lower assessed value of $900,000. After the county updates its records (usually taking 4-6 months), you’ll receive a supplemental tax bill to cover the difference.
Responsibilities for Sellers
As a seller, you are responsible for property taxes until the close of escrow, including any installments due near your closing date.
Example: If your escrow closes on February 20, you will need to pay the full February 1 installment and a prorated amount up to that date.
Proposition 19 Considerations
California Proposition 19 affects property tax benefits for inherited properties. Children can retain a lower tax base from their parents only if the property was their principal residence and is occupied by them as their primary home within a year.
Conclusion
Navigating property taxes in Los Angeles County is vital for both buyers and sellers. Understanding the unique tax structure, assessment rates, and exemptions can greatly impact your financial responsibilities. If you have any questions or need personalized assistance regarding property taxes, feel free to reach out to me at Domo Real Estate. I’m here to help you navigate this process smoothly and ensure you find your dream home without unexpected tax surprises.
Whether you live in Los Angeles or another part of Los Angeles County, a thorough understanding of local property taxes will benefit both homeowners and real estate investors.
To view property tax information for cities in Los Angeles County, click HERE and scroll to the bottom of the page.
Have question? CONTACT ME
Best regards,
Lindsay Woolf | CA DRE #02236711
DOMO Real Estate | CA DRE #01290500
Disclaimer: The information provided in this blog post is for general informational purposes only and does not constitute legal advice. Real estate transactions can be complex and subject to local regulations.
