How Do Property Taxes Work in Sacramento, California?

Located in the heart of California’s Central Valley, Sacramento stands out with its mix of urban development, historical districts, and growing suburban communities. If you’re planning to own a home in California’s capital, understanding property taxes—particularly Prop 13 regulations, local bond measures, and how supplemental assessments occur—can help you budget effectively. Below, we’ll break down Sacramento property tax essentials and how they fit within the broader California framework.

1. Prop 13: The Foundation of California Property Taxes

• 2% Annual Cap: Under Proposition 13, your property’s assessed value can only increase by 2% per year—unless there’s a change in ownership or significant improvements.
• Purchase Price Reset: Once you buy or sell a home, the county assessor recalculates the assessed value based on the market purchase price.
• Long-Term Savings: This system benefits homeowners over time by preventing large, sudden tax hikes if Sacramento home values rise significantly.

2. General Tax Rate & Sacramento-Specific Add-Ons

• Base Rate: California’s base property tax rate is 1% of the assessed value.
• Local Bonds & Measures: Sacramento County or city-level bonds—often voter-approved for schools, parks, or infrastructure—add small extra percentages to your tax bill.
• Special Assessments: Some newer communities or redevelopment areas may include additional levies or Mello-Roos taxes to fund roads, schools, or community facilities.

3. Supplemental Assessments & Reassessments

• After Purchase: Following your home purchase, the Sacramento County Assessor re-evaluates your property based on the new sale price. If it’s higher than the prior assessed value, expect a supplemental tax bill.
• Renovations: Building an ADU, finishing a basement, or major remodels can prompt a partial reassessment, raising your future property taxes.
• Plan Ahead: Keep funds on hand for any supplemental bills—these can appear a few months post-closing and may be prorated depending on the date of your purchase.

4. Payment Due Dates & Avoiding Delinquency

• Two Installments: Property taxes in Sacramento are typically due in two parts—the first by December 10 and the second by April 10. Late payments incur penalties.
• Mortgage Escrow: Many lenders incorporate property tax into your monthly mortgage payment, then disburse funds to the county on your behalf. Stay vigilant to ensure timely remittance.
• Consequences: Falling behind on taxes can result in penalty fees, liens, or, in extreme cases, a tax-defaulted property sale.

5. Exemptions & Transfers

• Homeowner’s Exemption: If this is your primary residence, you can reduce your assessed value by about $7,000, saving roughly $70–$100 a year.
• Prop 19 Moves: Homeowners 55+ or those with disabilities may transfer their current tax base to a new Sacramento home under specific conditions, avoiding a spike in property taxes.
• Veterans & Other Exemptions: Disabled veteran exemptions may apply for those who qualify, offering further tax relief.

Conclusion
In Sacramento, property taxes follow the overarching California guidelines under Prop 13, ensuring limited annual assessment increases. However, local bond measures, special district fees, and supplemental taxes can influence your final bill. By understanding how assessments, payment schedules, and exemptions work, you’ll be prepared for the true cost of homeownership in the state capital.

Still have questions about Sacramento property taxes or how they factor into your homebuying plans? Contact us for personalized guidance, local assessor contacts, and strategies to keep your tax obligations both clear and manageable.