How Often Do You Pay Property Tax in California?
Master your California property tax process. Gain clarity on payment cycles, understanding your bill, and managing deadlines effectively.
Property taxes in California fund local government services and infrastructure, including schools, public safety, and roads. These taxes are typically paid in two annual installments, providing a structured approach.
The Annual Property Tax Cycle
The property tax year in California begins on July 1st and concludes on June 30th. Property owners receive annual tax bills, with payments structured into two installments.
The first installment is due November 1st and becomes delinquent if not received or postmarked by December 10th. The second installment is due February 1st and becomes delinquent if not received or postmarked by April 10th. If a delinquency date falls on a weekend or legal holiday, the deadline extends to the next business day.
Understanding Your Property Tax Statement
Your annual property tax statement shows how your tax is calculated. It includes the assessed value of your property, based on its purchase price. Annual increases are generally limited to 2% under Proposition 13, unless there is a change in ownership or new construction.
The total tax due is calculated by multiplying the assessed value by the tax rate. This rate includes a general levy of 1% of the assessed value. Statements may also include voter-approved special assessments or direct charges, like bond measures or Mello-Roos Community Facilities Districts. These special charges fund specific local improvements or services and are not limited by Proposition 13’s 1% cap.
Methods for Making Payments
Property tax payments can be made through several methods. Online options are available via county websites, allowing payments using an e-check from a bank account, often without a fee. Payments can also be made online using credit or debit cards, though these transactions typically incur a service fee (e.g., 1.99% to 2.34%).
For those preferring traditional methods, payments can be submitted by mail. Mailed payments must have a United States Postal Service (USPS) postmark on or before the delinquency date to be considered timely. Machine-generated postmarks from private meters or online bill pay services may not be accepted if the payment is received after the deadline. In-person payments are also accepted at county tax collector offices. Some counties may offer direct debit programs or installment plans for taxpayers facing challenges, especially for tax-defaulted properties.
What Happens With Late Payments
Late property tax payments incur penalties. For the first installment, a 10% penalty is added to the unpaid amount if not received or postmarked by December 10th. If the second installment is not paid by April 10th, a 10% penalty is applied along with an additional flat fee, typically $10 to $20.
If taxes remain unpaid by June 30th, the property becomes “tax-defaulted.” A redemption fee is added, and penalties accrue at 1.5% per month (18% annually) on the unpaid balance. Properties typically have a five-year redemption period to pay off delinquent taxes, penalties, and interest. However, persistent non-payment can lead to the county tax collector selling the property at public auction to satisfy the debt.