Property tax surprises new homeowners more than almost anything else. The good news is California's system is fairly predictable once you understand the pieces. Here is how property tax works for Simi Valley and Ventura County homeowners.
The Prop 13 foundation
Under Proposition 13, your base property tax is about 1% of your assessed value, and that assessed value generally cannot increase more than about 2% per year while you own the home. Your assessed value is usually set at your purchase price, then grows slowly — which protects long-term owners from big swings.
What's on your bill
- The 1% base rate on assessed value.
- Voter-approved add-ons such as school and local bonds.
- Special assessments for local services or improvements.
- Mello-Roos special taxes in some communities.
Voter-approved add-ons
On top of the 1% base, voters approve bonds and assessments that add to your rate. These vary by location, which is why two homes of similar value in different areas can have different total rates. The add-ons fund things like schools and infrastructure.
Mello-Roos and special assessments
Some newer communities carry Mello-Roos special taxes that fund local infrastructure, and these can add meaningfully to your bill. Older, established neighborhoods often have little or none. Because Mello-Roos varies so much by tract, I always help buyers check it before they fall in love with a home.
How and when you pay
Property taxes are billed in two installments during the fiscal year, with set due dates and delinquency deadlines. Many homeowners pay through an escrow/impound account bundled into their monthly mortgage payment, so the lender pays the county on their behalf.
Estimating your bill
- Start with roughly 1% of the purchase price as a base.
- Add local voter-approved add-ons.
- Add any Mello-Roos or special assessments.
- Confirm the exact figures with the county.
Frequently Asked Questions
How is property tax calculated in California?
It starts with a 1% base rate on your assessed value under Proposition 13, plus voter-approved add-ons like bonds, and any special assessments or Mello-Roos. Your assessed value is usually set at your purchase price and can rise only about 2% per year while you own. Confirm your exact figures with the county.
What is the 2% cap under Prop 13?
Under Proposition 13, your assessed value generally cannot increase more than about 2% per year while you own the home, regardless of how much the market rises. This protects long-term owners from large tax increases. When the home sells, it is typically reassessed to the new purchase price. Confirm specifics with the county.
Why is my neighbor's tax different from mine?
Property tax is based on assessed value, which is usually set at each owner's purchase price and then capped at about 2% annual growth. A neighbor who bought long ago may have a much lower assessed value than a recent buyer, even in a similar home. Voter add-ons and Mello-Roos can also differ.
Does Mello-Roos affect my property tax bill?
Yes, in communities that have it. Mello-Roos special taxes fund local infrastructure and can add meaningfully to your total bill, on top of the 1% base and voter add-ons. Older neighborhoods often have little or none. Because it varies by tract, check Mello-Roos before buying — I can help you confirm it.
When are California property taxes due?
Property taxes are billed in two installments during the fiscal year, each with a due date and a delinquency deadline. Many homeowners pay through an escrow account bundled into their monthly mortgage. Confirm the exact dates with the Ventura County Treasurer-Tax Collector so you never miss a deadline.
How do I estimate property tax on a home I want to buy?
Start with roughly 1% of the purchase price as a base, then add local voter-approved add-ons and any Mello-Roos or special assessments. This gives a ballpark. For an accurate figure, confirm the specific rate area and any Mello-Roos with the county. I can help you check before you make an offer.
