How much will I pay in property taxes when I buy my home in Pasadena? How are property taxes calculated on an existing Pasadena home?
I've been getting a lot of property tax questions lately and decided to write a quick post about how consumers are affected when they buy a home in Pasadena or surrounding cities.
In 1978, California voters passed Proposition 13. As a result, the Los Angeles County Assessor can not exceed more than 1% of a property's maximum assessed value plus any additional bonds and other city specific taxes.
What this means to the Pasadena home buyer is that when you purchase your Pasadena home, the assessor will base your home's property tax bill on approximately 1.2% of the price that you paid for it. 1% for Los Angeles County and a little less than .2% for city bonds, taxes, etc.
For example, if you paid $500,000 for your Pasadena home expect your annual property tax bill to be around $6,000 or $500 per month.
Ongoing, the Assessor will raise your property tax bill due to annual inflation which can not exceed 2%. Going back to our previous example:
Year 1 - Pasadena Property Tax Bill = $6,000 appx. annually
Year 2 - Pasadena Property Tax Bill = $6,120 appx. adjusted for inflation
Year 3 - Pasadena Property Tax Bill = $6,242 appx. adjusted for inflation
And so on...
There are some exemptions that are available to Pasadena homeowners that you should be aware of:
- The most common is the Homeowners' Exemption: if your Pasadena home is your principal place of residence (Assessor always looks at January 1st, i.e. if you are living in your home as a principal residence on Jan. 1) you may apply for an exemption of $7,000 from your assessed value. The assessor made it pretty easy for home owners and will automatically send an exemption application. Please beware of companies out there that will send you an official looking document asking you to pay for them to file the exemption form on your behalf. They are out to take advantage of you. This exemption will save you, the homeowner, approximately $70 per year on taxes. Once you file this exemption, you do not need to refile it.
- Veterans' Exemption: If you are a veteran or a surviving spouse of an eligible veteran, you may apply for a $4,000 exemption applied to the assessed value. You do not need to reside on the property for this exemption. There are asset requirements that apply. Please call Assessor's office for more information on their guidelines at 213.974.3399. This exemption must be filed each year.
- Disabled Veteran's Exemption: If you are a disabled veteran who is blind in both eyes, has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service, you may be eligible for an exemption of up to $150,000 of the assessed value of your home.
Please feel free to email me with additional questions regarding property taxes or use the comment section to ask them. Hope you find this information useful.
If I can be of any assistance with your Pasadena Real Estate needs, please do not hesitate to email me or call me at (626)629-8439. Thank you!
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