What Is Property Taxes?
Property taxes are annual taxes levied by your local government based on the assessed value of your home. In California, the base rate is about 1% of the purchase price (Prop 13), plus local assessments. These taxes fund schools, roads, fire departments, and other public services.
Key Facts
- In Monterey County, effective tax rates are typically around 1.25% of purchase price.
- Property taxes are usually collected through your escrow account as part of your monthly payment.
- Under California's Prop 13, your assessed value can only increase by up to 2% per year.
- Supplemental taxes are separate and apply when you first buy the home.
Real-World Example
You buy a home for $650,000 in Salinas with an effective tax rate of 1.15%. Your annual property tax is about $7,475, or roughly $623 per month added to your mortgage payment.
Why It Matters
Property taxes are a significant part of your monthly housing cost and they're not optional. When budgeting for a home, always factor in taxes — they can add $500 to $1,000+ per month depending on the home's value and location.
En Español
Los impuestos sobre la propiedad son impuestos anuales que cobra tu gobierno local basados en el valor tasado de tu casa. En California, la tasa base es aproximadamente el 1% del precio de compra (Proposición 13), más evaluaciones locales. Estos impuestos financian escuelas, carreteras, bomberos y otros servicios públicos.