Los Angeles Property Tax Website:
Call (888) 807-2111
There is a lot of great information on the city’s website about property taxes. You may need to look up your Assessor Parcel Number (APN) before visiting them, to have specific questions answered about your property, so it’s a good idea to look it up before you call.
How much are my California Property Taxes?
The state of California property Tax rate is ~1.25% of your property’s assessed value. We have one of the lowest property tax rates in the country (the tax savings stop there though- almost every other tax in California seems to be one of the highest!). Low property tax is a real benefit to property owners, it makes owning property more affordable and also raises property value.
How much do my California Property Taxes change each year?
The current California Property tax laws went into effect in 1978 with the passage of Proposition 13. In addition to a very low tax rate of 1.25%- proposition 13 placed a cap on the amount your taxes can be raised each year to a maximum of 2%. The Real Estate Market goes up and down. In years where the market is declining, it is possible to lower your annual property tax bill by using Proposition 8– the decline in value reassessment.
Historically, long term home appreciation in California has far out paced the 2% property tax cap (2% is less than annual average inflation in Los Angeles which averages 3%), and so for homeowners that have owned their property for a long time- 10 years, 20 years, 30 years, they experience big tax savings. Their property taxes are less than the current market value of their home. Over the years, this 2% cap adds up to huge tax savings!
When are my Property Taxes Due?
Nobody likes getting the property tax bill in the mail. For one thing, they are a big bill! Since Property taxes are not charged monthly, it is a good idea to plan ahead because you will be charged for 6 months of property tax at one time.
The City of Los Angeles starts its fiscal year for Property Tax July 1st.
Fiscal Year versus Calendar Year H3
Calendar Years always start January 1st and End Dec 31st. Fiscal Years on the other hand can start on any date. Fiscal Years are used for accounting purposes and the starting and ending date can vary by the industry of the business. The length of a Fiscal Year is always one year, so the end date will always be one year after the start date. That means that any Fisal Year start date other than January 1st will span a fraction of 2 different years.
The City of Los Angeles fiscal year for property taxes starts July 1st. The Federal Government’s fiscal year begins October 1st (Why Oct 1st? Because it allows newly elected officials to vote on the budget their first year).
Property taxes are paid in two equal installments each year. It’s ‘that time again’ in November, and February.
1st Property Tax installment
Bill sent November 1st, delinquent and subject to late penality if not post marked Dec 10th
2nd Property Tax installment
Bill sent February 1st, delinquent and subject to late penalty if not post marked April 10th.
How much is the late fee if I am late on my property tax?
You have 40 days to pay your property tax bill before it becomes delinquent. The Late fee is quite large- it’s a 10% late fee– ouch! If your biannual property tax bill is $5,000- the fee would be an additional $500.
What is a Supplemental Tax Bill?
For new owners, the first year that they own a property, they will more likely than not get a supplemental tax bill in addition to their normal biannual property tax bills. First year Homeowners sometimes wonder if this supplemental bill is a mistake, or if their property taxes have gone up. The answer is no, it is not a mistake, and no, their property taxes have not been raised. The Supplemental tax bill is just one extra payment in the first year to raise your property tax to it’s new level if it is higher than the previous owner’s tax, which it almost always is.
Property Tax Calendar: