How to Calculate Property Taxes

investment property

How to Calculate Property Taxes

Here is how you calculate property taxes in California. Property taxes consist of two components:

Ad Valorem is calculated as a % of the assessed value. In California, the assessed value is the sale price, and thanks to Prop 13, that assessed value can only increase by 2% per year. In this example, the property tax rate (circled in red) is 1.0483%, so if the sale price is $1,000,000, the ad valorem tax would be $10,483, and that amount only increases (at most) by 2% per year.

Direct (or Special) Assessments are flat fees imposed on each parcel of real estate in an area after a city for that area is not covered (or insufficiently funded) by property tax revenue. In our example below, those are circled in green. Here, they equal $917.86. Direct assessments can vary dramatically within a City, especially within a master-planned community. So the total property taxes due for year one at a $1m purchase price are ($10,483+$917.86) $11,400.86.

 

For Orange County, you can access property tax info at Tax Collector Website

 

Simply add the address of the subject property in the street address search field and hit find. 

 

and then select the parcel number

 

Again

 

Select view bill

 

 

And thats it!


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