What Is Supplemental Taxes?
Supplemental taxes are a one-time property tax adjustment that happens when a home is sold in California. They cover the difference between the previous owner's assessed value and the new purchase price, prorated for the remainder of the tax year.
Key Facts
- You'll receive one or two supplemental tax bills within 6-12 months of buying.
- These are separate from your regular property tax bill.
- They're based on the difference between old and new assessed values.
- Supplemental taxes are NOT included in your monthly escrow — they come as a separate bill.
Real-World Example
The previous owner's assessed value was $400,000. You bought for $650,000. The supplemental tax covers the $250,000 difference at the local tax rate, prorated for the months remaining in the fiscal year. Expect a bill of $1,500 to $2,500.
Why It Matters
Supplemental taxes catch many first-time buyers off guard because they arrive months after closing as a separate bill. Budget for them so you're not surprised. Your lender or agent should give you an estimate at closing.
En Español
Los impuestos suplementarios son un ajuste único de impuestos sobre la propiedad que ocurre cuando se vende una casa en California. Cubren la diferencia entre el valor tasado del dueño anterior y el nuevo precio de compra, prorrateado por el resto del año fiscal.