6 Things Investors and Homeowners Need to Know About Sacramento County Property Taxes
There are many things to consider when buying property in California. One important factor to consider is the property tax that will be due. Generally, the amount of property tax you owe depends on the location. Here are a few important things to know about property taxes in Sacramento County.
How Property Taxes Are Calculated
Property Tax Penalties
Property Tax Rates
How to Pay Property Taxes
When Property Taxes Are Due
How to Lower Property Tax Liability
While Sacramento County is not the largest county in California, it proudly hosts the state’s capital, Sacramento. The county is 994 square miles and has a population of over 1.5 million. Almost half the residents live in unincorporated areas. Over 490,000 live in Sacramento, one of the incorporated cities. Other incorporated cities include Citrus Heights, Elk Grove, Folsom, Galt, Isleton, and Rancho Cordova. Sacramento County has over 504,653 parcels of land with an assessment property tax roll value of $160 billion after deductions and exemptions. Almost half of the property tax revenues collected by the Sacramento County Treasurer go to fund schools every tax year.
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1. How Property Taxes Are Calculated
Property taxes are annual taxes in California comprised of three main components. First, there is the statewide general tax levy of 1% of property value. Second, there are voter-approved debt bonds, which are used to fund public repairs or other projects. Third, a direct assessment of fixed amount may be applied instead of a tax rate applied to property value.
The general tax levy was put in place through Article XIII A, known as Proposition 13. This levy limits the tax rate to 1% across the state and also sets a 2% limit on how much the value of property can increase annually. Each county in California has an Assessor’s Office, which is responsible for determining the value of each property in the county. This information is used to create an assessment roll, which the Auditor-Controller uses to apply area-specific tax rates and special assessments. The real estate tax bills are then sent to property owners and collected by the Treasurer-Tax Collector. It is the owner’s responsibility to pay the tax liability by the due date or face penalties and interest.
The Sacramento Assessor will determine the value of a property for taxation annually, or when changes of ownership occur. Assessments can also occur when substantial improvements are made to the property. In some cases, the value of a property may have decreased, in which case the property taxes can also be lowered (temporarily) under Proposition 8.
For each property, the Sacramento County Assessor will determine the current fair market value. This is used to create an assessor map that can be searched by parcel number. The determined value could be the original price of the property plus the 2% annual increase allowed by Proposition 13, or it may be the estimated value when property ownership is transferred.
Purchasing a home can cause a supplemental assessment at the current value and the taxpayer may be sent supplemental tax bills. Generally, a transfer of property triggers a reassessment of property value, though there are exemptions. For example, the value of the property will not increase when ownership is transferred to a spouse.
Depending on when the transition occurs, you may see multiple supplemental tax bills. First, an annual property tax bill is sent to the owner in January for the assessed value. When a property changes hands, however, the Assessor’s office must reassess the property at the new value and send out a supplemental tax bill for the difference. When negotiating the purchase of the property, the buyer and seller will formally agree who pays which property taxes. Sometimes, this is the prorated amount of time each owner possessed the property in a given year. If a property owner disagrees with the assessed value, they can attempt to appeal through an assessment appeals board using the assessor’s parcel number.
Sometimes, a county doesn’t assess the increase in value due to an improvement or change in ownership, in which case, it is possible to receive an escaped assessment tax bill. These additional bills are in tandem with the annual property tax bill issued by the Sacramento County Treasurer-Tax Collector. It is important to note that, if you have an impound account through a mortgage company that pays your annual property tax, they will not usually pay for supplemental or escaped tax bills.
2. Property Tax Rates
Property tax rates for the county of Sacramento depend on where the property is located. The Sacramento County Auditor-Controller applies tax rates from over 175 taxing agencies. Property tax revenue goes to fund schools, firefighters, police, county improvements and repairs, and more.
Each parcel of land in the county could be subject to multiple taxing agencies which apply a tax either in the form of a tax rate or fixed amount. For example, in Sacramento City, you have the general tax levy of 1% or 1.0000, and some areas might have an additional special tax of 0.0131 for the Los Rios Community College District, and 0.1164 for the Sacramento Unified School District. This is a combined property tax rate of 1.1295. In comparison, you can find property with lower tax rates of 1.0995 in some parts of Folsom City.
3. When Property Taxes Are Due
Annual property taxes are due in two installments through the fiscal year. The Sacramento County fiscal year starts July 1st, when the assessment roll is completed. Unsecured property tax bills are sent out by the Treasurer-Tax Collector’s Office in July and are due by the end of August.
Secured property tax bills are sent out in October. The payment for secured property is due in two installments. The first installment is due by the end of November, and the second installment is due at the end of February.
4. Property Tax Penalties
Failing to pay Sacramento County property taxes by their due dates can result in penalties and interest added to the amount owed. Penalties are harsher for unsecured and personal property taxes or delinquent prior year taxes since they are more difficult to collect. If payment is not made, Sacramento County can place a lien or intent to collect and eventually seize the property in question. Late payments can incur a 10% penalty on top of a $15 fee per bill. Commercial investors renting property will also want to consider related landlord-tenant laws.
5. How to Pay Property Taxes
There are many ways to pay your property taxes to local governments. Sacramento County offers its Online Property Tax Bill Information System on its website (eproptax.saccounty.net), where owners can pay both secured and unsecured property taxes using e-check payments. You can also pay by mail, over the phone, using bill payment options with your bank, or even in-person.
Keep any due dates in mind when using slower forms of payment, such as by mail. Online and phone options may allow the use of credit and debit cards, but this option may also incur a convenience fee. The penalties for not making payments on time can sometimes be quite high. If necessary, it may be worth paying your tax bill with a credit card or even a personal loan in order to avoid these penalties. It’s always best to talk with a professional tax attorney for more information on your options.
6. How to Lower Property Tax Liability
There are several ways to lower your property tax liability in Sacramento County. First, there is the homeowner’s exemption, which can reduce your taxable property value by $7,000 if the property is your primary residence. In some cases, rental property tax deductions are available. And you may be able to claim an exemption for a multifamily housing rental as long as you occupy one of the units as your primary residence.
There are also possible property tax exemptions for exclusive church or religious, scientific, hospital, or charitable use of the property. Some improvements to a property may also be exempt from assessment, such as qualifying solar installations. Disabled veterans who suffer from 100% service-related injuries may also qualify for exemptions. Those who are over 55 or severely disabled can transfer houses and keep the same base value, even if the property is in another county. Other tax strategies exist for parents or grandparents to pass property to their children or grandchildren without triggering a reassessment.
In some cases, you may feel that the assessed value of your property is not correct. If you disagree with the assessed value, you may be able to appeal the decision through the County Assessor’s office. However, you are not allowed much time to appeal, so you must take action quickly. It may be a good idea to consult with a tax lawyer to craft the best approach. If the county rejects the appeal, you do have the right to take the appeal to court.
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How Sacramento County Compares
Sacramento County’s property tax system is largely consistent with the rest of California, thanks to the state’s 1% base property tax levy and limits on annual assessment increases. While some California cities may have slightly higher effective tax rates because of local assessments, comparisons with other states are more complex due to differences in property values, assessment methods, and overall tax policies.
Category
Other
States
Other California Cities
Sacramento County
Property Tax Rate
How local property tax rates compare.
~
Varies significantly depending on each state’s tax system.
✓
May be slightly higher due to local voter-approved taxes and assessments.
✓
Generally follows California’s 1% base property tax levy.
Assessment Growth
How assessed property values can increase.
~
Reassessment rules vary by state.
✓
Subject to the same statewide assessment rules.
✓
Assessed values generally increase by up to 2% per year.
Tax Structure
How property taxes are determined.
~
Tax calculations vary by state.
✓
Similar statewide system with local differences.
✓
Based on assessed value and local taxes.
Income Tax Relationship
How property taxes relate to other state taxes.
~
Some states have higher property taxes but no income tax.
✓
Same statewide tax structure applies.
✓
State income tax helps offset lower property taxes.
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Asset Protection Comparison
|
Category
|
Other States
|
Other California Cities
|
Sacramento County
|
|---|---|---|---|
| Property Tax Rate | ~ (Varies by state and local tax laws.) | ✓ (May be slightly higher due to local taxes.) | ✓ (Generally follows California's 1% base property tax levy.) |
| Assessment Growth | ~ (Reassessment rules vary by state.) | ✓ (Follows the same statewide rules.) | ✓ (Assessed values generally increase by up to 2% per year.) |
| Tax Structure | ~ (Tax calculations vary by state.) | ✓ (Similar statewide system with local differences.) | ✓ (Based on assessed value and local taxes.) |
| Income Tax Relationship | ~ (Some states have higher property taxes but no income tax.) | ✓ (Same statewide tax structure.) | ✓ (State income tax helps offset lower property taxes.) |
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Sacramento County Property Taxes
Sacramento County follows California’s property tax system, where taxes are based on a property’s assessed value and applicable local tax rates. From assessments and billing to appeals and exemptions, understanding each part of the process can help property owners better manage their tax obligations and identify potential savings.
Sacramento County at a Glance
Sacramento County is the eighth-largest county in California and is home to the state capital, Sacramento. With an assessment roll valued at more than $160 billion, property taxes provide essential funding for public services, including schools, colleges, and local government operations.
Property Assessments
The Sacramento County Assessor is responsible for determining the assessed value of every property in the county. Those values are then used by the Auditor’s Office to calculate annual property tax bills, as well as bills issued after changes in ownership or qualifying property improvements.
Understanding Your Tax Bill
Property tax bills include the state’s standard 1% general tax levy based on assessed value, along with any additional voter-approved taxes and direct assessments from local taxing agencies. These combined charges determine the total amount owed each year.
Assessment Appeals
If you believe your property’s assessed value is inaccurate, California law provides a formal appeals process to resolve disagreements with the Assessor’s Office. When necessary, property owners may pursue additional legal remedies through the courts.
Paying Your Property Taxes
Sacramento County offers an online property tax system that allows homeowners to pay their taxes, view parcel information, and review the details of their tax bill. This makes it easier to understand how taxes are calculated and stay current on payment deadlines.
Exemptions and Tax Savings
Certain property owners may qualify for exemptions or exclusions that reduce their property tax liability. Exploring these opportunities and planning ahead can help minimize taxes while ensuring compliance with California’s property tax laws.
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