Property Tax in San Diego: An Overview

San Diego, located in the southern region of California, is known for its picturesque beaches, stunning sunsets, and mild climate. However, San Diego is also known for having some of the highest property taxes in the state of California. As a homeowner in San Diego, it's important to understand how property taxes work, and how they can impact your bottom line.

A typical property tax bill consists of many taxes and charges including the 1% rate, voter–approved debt rates, parcel taxes, Mello–Roos taxes and assessments. Depending on where you live, your total property tax bill can range from 1% to 2% of the assessed value of your home. The 1% rate applies to owner–occupied residential properties, which represents about 39% of the state’s property tax revenue, followed by investment and vacation residential properties (34%) and commercial properties (28%).

What is Property Tax?

Property tax is a tax that is assessed on the value of real property, including residential and commercial properties. In San Diego, the county assessor is responsible for determining the value of properties and assessing taxes on that value. The property tax is used to fund essential public services, such as schools, roads, and emergency services.

How are Property Taxes Calculated in San Diego?

The property taxes in San Diego are calculated by multiplying the assessed value of the property by the tax rate. The assessed value of the property is determined by the county assessor and is based on a number of factors, including the age and condition of the property, the location of the property, and the size of the property. The tax rate is set by the local government and is used to generate the necessary revenue to fund public services.

The Property Tax Base Can Vary

The state’s laws regarding the allocation of property tax revenue from the 1% rate have evolved over time through legislation and voter initiatives. Property tax revenue is collected by the county in which the properties are located and is used exclusively by the local government. Although property tax is a local revenue source, it affects the state budget due to the state’s education finance system for which there is additional property tax revenue of 1% rate for K–14 districts.

What Are Mello-Roos/Special Assessment Taxes?

As a way to generate funding for public works and facilities particularly for new developments, in 1982, the Community Facilities Act (commonly referred to as Mello-Roos) was passed. Those communities needing new schools and infrastructures, such as public parks and roads, are allowed to impose Mello-Roos and property tax can be assessed as a percentage of the home’s value.

What is the Average Property Tax in San Diego?

The average property tax in San Diego is approximately 1.2% of the assessed value of the property. This means that if your property is assessed at $500,000, you can expect to pay around $6,000 in property taxes each year. However, it's important to note that the actual property tax rate can vary greatly depending on the specific location of the property.

How Can You Appeal Your Property Tax Assessment?

If you believe that your property has been overvalued by the county assessor, you may be able to appeal the assessment and have your property taxes reduced. The process of appealing your property tax assessment typically involves submitting a formal complaint to the county assessor and presenting evidence that supports your case. If your appeal is successful, you could see a significant reduction in your property taxes, saving you hundreds or even thousands of dollars each year.

The other alternative and the easier method, is just to simply contact us. We are property tax appeal experts and handle everything for you. We work off of contingency, so our services are free until you have a refund in your hand.

Property taxes are an important aspect of home ownership in San Diego. Understanding how property taxes are calculated, what the average property tax rate is, and how you can appeal your property tax assessment can help you make informed decisions about your property and your finances. If you're a homeowner in San Diego and have questions about your property taxes, consider reaching out to a professional property tax consultant for assistance.