Why Are My California Property Taxes Higher Than the Seller's?
October 28, 2026
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Why Are My California Property Taxes Higher Than the Seller's?
This one catches a lot of buyers off guard. You look up the home and see the seller's tax bill. Then your bill comes out much higher. Here's why.
Taxes reset when a home sells
In California, Prop 13 bases property taxes on the price you pay, not on what the last owner paid years ago. The base rate is about 1% of your purchase price, plus local taxes and fees. So if the seller bought the home long ago for much less, their tax bill may be a lot lower than yours will be.
What's a supplemental tax bill?
After you buy, the county reassesses the home at your price. You may then get one or more supplemental tax bills to cover the gap for the rest of the tax year. These bills often are not paid through your mortgage escrow account, so they can come as a surprise.
How do I plan for it?
- Budget for taxes based on your purchase price, not the seller's bill.
- Set aside a little extra in case a supplemental bill shows up.
- Ask us to include a realistic tax estimate when we look at your payment.
A conventional loan or any of our other loan options may work for you. We'll show you a full payment estimate, taxes included, so there are no surprises.
Reach out to our team or connect with me directly. We serve buyers all across California.
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