When buying in Southern California, property taxes will vary between cities, typically ranging between 1 - 1.5% of the purchase price. There can also be a Mello-Roos tax in some areas, which is an additional tax that goes towards neighborhood improvements and community services within a specific area. MR can range from a few hundred dollars to a few thousand dollars per year. MR assessments typically last 20-25 years from their inception, but can be extended. The base tax rate plus any MR or other special assessments is an important consideration in the buying process with regard to monthly payment and budgeting. You can find your base tax rate, MR, and any other special assessments on the Orange County Tax Collector's website. I can help navigate you through it!

Understanding Propositions 19 B & P

If you've owned your current home for a while and it has a low tax base, then buying another home could result in a much higher property tax payment since the taxes will be based on the purchase price. However, for persons 55+, you can apply for Prop 19B, which transfers the base year value of the home you sell to your new primary residence. The transfer must occur within two years of the initial sale, and there are a few other qualifying factors.

For transfers between a parent and child, you can apply for Prop 19P, which is a claim for a reassessment exclusion.

Details on both of these programs can be found at OCAssessor.gov.