Beyond Bending Tell You How
As a homeowner in California, you’re likely aware of the high property taxes that come with owning a home in the state. However, there is a way to reduce your tax burden through the California homeowners property tax exemption. This exemption can save homeowners thousands of dollars in property taxes each year, but it’s important to understand the eligibility requirements and application process to take advantage of it.
In this guide, we’ll cover everything you need to know about the California homeowners property tax exemption, including who is eligible, how to apply, and how much you can save. We’ll also address some common questions and misconceptions about the exemption.
What is the California Homeowners Property Tax Exemption?
The California homeowners property tax exemption is a tax break that reduces the taxable value of a homeowner’s primary residence by $7,000. This means that if your home’s assessed value is $500,000, the exemption would reduce your taxable value to $493,000.
The exemption applies only to a homeowner’s primary residence, meaning the home they live in for the majority of the year. Second homes, vacation homes, and rental properties are not eligible for the exemption.
Who is Eligible for the California Homeowners Property Tax Exemption?
To be eligible for the California homeowners property tax exemption, you must meet the following criteria:
- You must be the owner of the property as of January 1st of the current tax year.
- The property must be your primary residence as of January 1st of the current tax year.
- You must file a claim for the exemption with your county assessor’s office.
If you meet these criteria, you should be eligible for the exemption. However, there are some additional factors to consider, such as income limitations and ownership status.
Income Limitations
While there are no income limitations to qualify for the California homeowners property tax exemption, there are income limitations for the California Property Tax Postponement program. This program allows eligible seniors and disabled homeowners to defer payment of their property taxes until they sell their home or pass away.
To be eligible for the California Property Tax Postponement program, your household income must be $45,000 or less and you must meet other eligibility requirements. If you’re not eligible for the program, you can still claim the homeowners property tax exemption regardless of your income.
Ownership Status
If you own your home with someone else, such as a spouse, both owners must meet the eligibility criteria to claim the homeowners property tax exemption. If one owner is ineligible, the entire property will be disqualified from the exemption.
If you own your home through a trust, the trust must also meet the eligibility criteria to claim the exemption. If the trust does not qualify, the exemption cannot be claimed.
How to Apply for the California Homeowners Property Tax Exemption
To claim the California homeowners property tax exemption, you must file a claim with your county assessor’s office. The deadline to file a claim is February 15th of the current tax year.
You can obtain a claim form from your county assessor’s office or download it from their website. The form will ask for basic information about you and your property, including your name, address, and ownership status.
You’ll need to sign the claim form to certify that you meet the eligibility requirements and that the information you’ve provided is accurate. You may also need to provide additional documentation, such as proof of residency or ownership.
Once you’ve submitted your claim form, the assessor’s office will review your application and determine your eligibility for the exemption. If you’re approved, your property taxes will be adjusted to reflect the $7,000 exemption.
How Much Can You Save with the California Homeowners Property Tax Exemption?
The amount you can save with the California homeowners property tax exemption depends on the assessed value of your home and the tax rate in your county. However, in general, you can expect to save around $70 to $100 per year.
While this may not seem like a significant amount, it can add up over time. If you own your home for 30 years, for example, the exemption could save you $2,100 to $3,000 in property taxes over the life of your ownership.
Common Questions and Misconceptions about the California Homeowners Property Tax Exemption
Can You Claim the Exemption for Multiple Properties?
No, the California homeowners property tax exemption applies only to a homeowner’s primary residence. Second homes, vacation homes, and rental properties are not eligible for the exemption.
Do You Need to Reapply for the Exemption Every Year?
No, once you’ve been approved for the California homeowners property tax exemption, you do not need to reapply every year. However, you should notify your county assessor’s office if your ownership status or primary residence changes.
What Happens if You Sell Your Home?
If you sell your home, the California homeowners property tax exemption does not transfer to the new owner. The new owner will need to file their own claim for the exemption if they meet the eligibility requirements.
What Happens if You Move Out of Your Home?
If you move out of your home and rent it out, the property is no longer eligible for the California homeowners property tax exemption. You should notify your county assessor’s office of the change in status.
Conclusion
The California homeowners property tax exemption can be a valuable tax break for homeowners in the state. By reducing the taxable value of your primary residence by $7,000, you can save hundreds or even thousands of dollars in property taxes over the life of your ownership.
To take advantage of the exemption, make sure you meet the eligibility requirements and file a claim with your county assessor’s office by February 15th of the current tax year. If you have any questions or concerns about the exemption, contact your county assessor’s office for assistance.
