Property taxes are one of the least glamorous parts of homeownership, but in California, they’re an essential piece of the financial puzzle. Whether you’re a first-time buyer or a seasoned homeowner looking to budget more effectively, understanding how property taxes work – including when they’re due and what supplemental.

California’s property tax system is shaped by Proposition 13, passed in 1978, which limits how much your assessed value can increase each year. Under Prop 13:

* The base property tax rate is 1% of the assessed value.
* Annual increases in assessed value are capped at 2% per year, unless the property changes ownership or undergoes new construction.
* Local voter-approved bonds and special assessments may be added on top of the 1% rate.
So, if you buy a home, your purchase price becomes your new assessed value, and that number is used to calculate your taxes going forward.

California property taxes operate on a fiscal year calendar that might feel a little backward at first. The schedule is:
Payments Are Split Into Two Installments:

1. First Installment
* Due: November 1
* Delinquent After: December 10

2. Second Installment
* Due: February 1
* Delinquent After: April 10

If taxes are not paid by those dates, penalties begin to accrue, so it’s important for homeowners to mark their calendars-or set up impound/escrow accounts with their lender to handle payments automatically.

One of the most misunderstood aspects of California property taxes is the supplemental tax bill. Buyers are often surprised when a new bill arrives months after closing – but it’s completely normal.

Here’s why it happens:
When you purchase a home, the county reassesses the property based on your new purchase price. Since the previous owner likely had a lower assessed value, the county needs to “catch up” the taxes owed between:

* the old assessed value, and
* the new assessed value.
This difference is billed as a supplemental property tax.

Important notes about supplemental taxes:

* You may receive one or two supplemental bills, depending on when the purchase occurred in the fiscal year.
* They are separate from your regular tax bill and not included in the escrow account set up by your lender.
* They often arrive 3-9 months after closing, so new homeowners should budget accordingly.

Understanding your tax schedule and anticipating supplemental bills helps you:* Avoid penalties from missed payments
* Budget accurately for your first year of homeownership
* Eliminate the stress of unexpected mail from the county

Property taxes aren’t the most exciting topic, but California’s system becomes predictable once you know how it works. And with the right lender and real estate team guiding you, you’ll always be prepared.