Calculating Tax Rate for Property in Los Angeles

Los Angeles, otherwise known as LA, is home to many celebrities and renowned people. The state of California is generally known for its high tax price. Although the taxes are higher in the rest of the state, Los Angeles has lower tax rates when compared to the national average. But, is the tax rate amount and the actual amount you end up paying the same? In this guide, we’ll help you calculating Los Angeles property tax rate.

How is the Tax Rate Calculated in Los Angeles County?

According to the Constitution of California, which was amended and applied in 1978, you have to pay tax rates at 1% of the market value of your house at the time when you first bought it. The value for the tax rate is then increased annually concerning the assessed value. The added values are capped at 2% yearly and it is the only large general property tax you are required to pay.

See Also: How to Calculate Property Tax Rate in Georgia 2023

Calculating Tax Rate for Property in Los Angeles

How is the Value for Taxable Property Assessed?

The base year value is decided when you buy the property and assess the value at the time of purchase. It is the starting point after which the assessed value increases annually with adjustments according to the inflation rate. The inflation rate is determined using the California Consumer Price Index.

That means the market value of your home is higher when compared to the assessed one as the 2% increase in cap doesn’t take the actual market increases into account. Nonetheless, if the ownership is transferred or any other significant improvements are made to the property, a new assessment will be performed by the tax evaluators.

Value for Taxable Property Assessed

For example, if you plan on selling your home in LA that you bought about a decade ago and then planned on investing in a place with a less expensive home, the property tax would be higher. That is because the new assessment will give a higher value. This higher value is suppose to be will be in line with the actual market value.
In contrast, the property tax rate in Los Angeles County has no connection with the neighborhood you’re living in. Hence, if a house in your neighborhood is being sold at more than the assessed value of your house, there’s a chance that the house owner will be paying more taxes.

Additional Property Tax Rates in Los Angeles

Other than the 1% taxable amount you pay, other charges are also  calculated. These charges are not exactly the property taxes, but they are still billed with the taxable amount. These charges are also called levies and usually depend on which district your home is in.

Can the Property Tax Rate be Lowered?

The property tax rate cannot be lowered or negotiated in LA. However, you can challenge the assessed value of your house. If you bring down your house’s assessed value, the tax rate remains 1%. But, you will pay less according to the newly assessed value you managed to bring down.

Who is Exempted from Paying Taxes?

Even though the property tax rates are high, there are certain cases in which property tax exemptions apply for some people residing in California. Some common cases in which taxes are exempted are in the case of homeowner’s exemption, veterans, and senior citizens.
If you’re a homeowner in LA, you can claim a $7000 exemption from the total amount of your house that is taxable. However, to qualify for this exemption, the residence should be your primary property and not rented. You will be exempted $7000, which is a $70 reduction annually.

The second type is the veteran exemption, serving or discharged, who can claim up to a $4000 reduction. A surviving spouse or parent can also claim an exemption on behalf of a deceased veteran.

Who is Exempted from Paying Taxes

In LA, you are considered a senior citizen if you’re over the age of 62. People with disability or blindness are also eligible to receive fewer property taxes. These people are not exempted from the property tax rates but they may be assisted based on their income and other factors.

Tax Billings

The tax bill for Los Angeles County is billed through two installments. You receive the first installment in October, which is to be paid by November 1st. If you are unable to make the payment by December 10th, the payment is considered to be delinquent.
The second installment arrives along with the first one, but it is due on February 1st and must be paid by April 10th. Otherwise, it will be considered delinquent. The penalty charges for the delinquent payments is 10%.
Homeowners can complete the payments for the taxes through several modes. You can pay the taxes in person, through the telephone, by post, through online payments, or through an eCheck. Get insight information on how to make your payments completely through the Treasurer and Tax Collector of the County.

Wondering about How to Pay the Taxes?

Property tax rates can cause you a whirlpool of worries and stress you out financially. If you are considering selling your home, it is an excellent option to let go of your taxation worries. At our services, we offer competitive market prices for your house with no obligation.

We are the direct buyers, with no middle man in between. Working with us will give you a smooth experience of selling your property easily. Our offers are very fair and welcoming to the homeowner. You also need not stress about renovating or remodeling your house. We buy the house as-is and make all the renovations ourselves. Contact us to get a no-obligation offer for your house and close a deal quickly.