Tax Calculator

1. Let’s say you purchased your primary resident, which is where you currently live, for $300,000 in 1981.  Your house is now worth $1,000,000 in 2021.  In 1981, you were fortunate to have Proposition 13 establish your property tax basis at 1.1% or $3,300 per year.  Let’s say over the forty years of ownership, the county assessor’s office averaged the legal 2% annual increase in property taxes on your property.  Let’s also assume for the sake of this example, the county has not increased your property tax basis due to capital improvements you made, including a kitchen remodel, bathroom remodels, skylights etc. However, in real life, the county may very do exactly this.  Keep in mind, variations in adjustments could go down, not just up. In 2008, many homeowners got adjusted property taxes due to diminishments in valuations.
2. With these 40 years of average adjustments, your property tax bill is now $7,144.  See the property tax adjustment calculator to calculate yours:  https://www.calculatorsoup.com/calculators/financial/property-tax-calculator.php
3. Compared to a property purchased for $1,000,000 in 2021, the property taxes are $11,000/year, a 54% increase over your original adjusted tax basis.