HOMEBUYER EDUCATION

Understanding California Property Tax Bills

After buying a home in California, you may see more than one type of property tax bill. Understanding the difference can help you know what to expect after closing.

Annual / Secured Property Tax Bill

This is your regular property tax bill based on the property's assessed value.

The annual tax bill is generally divided into two installments.
If you have an escrow or impound account, your lender may collect money toward property taxes as part of your monthly mortgage payment.
This is your regular tax bill and continues each year.

Supplemental Property Tax Bill

This is a separate property tax bill that may be issued after a change in ownership and reassessment.

It accounts for the difference between the property's prior assessed value and its new assessed value for the applicable period.
The bill may arrive months after closing.
It is separate from your regular annual property tax bill and does not replace it.

What You May See After Buying Your Home

A simple look at why a supplemental bill can appear after your purchase.

STEP 1 You Purchase
Your Home
→
STEP 2 County Reassesses
the Property
→
STEP 3 Regular Annual
Taxes Continue
→
STEP 4 A Supplemental Bill
May Arrive

A Simple Example

PREVIOUS ASSESSED VALUE $300,000
NEW ASSESSED VALUE $650,000

After the purchase, the county may reassess the property based on the change in ownership. A supplemental assessment accounts for the difference between the previous and new assessed values for the portion of the tax year that the new value applies.

!

One Important Thing to Remember

Even if property taxes are included in your monthly mortgage payment, do not automatically assume a supplemental tax bill will be paid through your escrow or impound account. Review the bill and contact your mortgage servicer or county tax office if you're unsure how it should be handled.

The goal is simple: know what you may receive, understand why, and be better prepared after closing.

For general educational purposes only. Property tax amounts, assessments, billing, and escrow practices vary by property and individual circumstances. Verify your specific tax information with the applicable California county assessor and tax collector, and contact your mortgage servicer regarding escrow or impound payments.