Owning a home is expensive. Keeping it is even more so. Not only do you have maintenance costs, utilities, mortgage payments, and insurance, but you also have to pay property taxes. These are assessed by the county you live in to fund schools, public works, law enforcement, the fire department, paramedics, judicial offices, the general government, community development, etc.
Summary of Property Taxes:
Fee is assessed once a year. This is based on your home’s property tax base, plus any increase over the last year’s assessment. This fee increase is typically a 2% raise, as mandated by the individual counties, who may have special measures, as passed in elections.
Typically due to the county in two installments.
Elements, in Detail:
Your initial property tax base is determined by the value of your home at the time of purchase of the house. It is based on the actual selling price of the home itself, meaning land and structure.
Each year, the county increases the stated value of the home (from the initial property tax base) by approximately 2%. This net value is the amount that the tax is assessed on.
The property tax is a set percentage of the net value. For Contra Costa County in California, the tax is equal to 1% of the net value.
Additional county specific taxes are added as a percentage of the net value of the home, as determined by the county, such as bond measures and county election assessments.
Tax Deductions:
Regular Income Tax, Federal and State – These taxes are deductible under the “Taxes You Paid” section of Schedule A.
