In California, counties can charge a documentary transfer tax of 55 cents per $500 of value, or $1.10 per $1,000, when real property is sold. Cities can charge half that, credited against the county tax, and some charter cities charge far more. State law doesn't say whether the buyer or seller pays. Your contract and local custom decide.

What does state law say?

The tax comes from Revenue and Taxation Code section 11911. It lets a county impose a tax on each deed or other document transferring real property when the value exceeds $100. The rate is 55 cents for each $500 of value, or fraction of $500.

The value is figured on the consideration paid, excluding the value of any lien or encumbrance that stays on the property at the time of sale. If you take over an existing loan, that part generally isn't taxed. A brand-new loan, though, doesn't reduce the taxable amount.

How much will it cost?

At the base county rate, here's what the math looks like:

• $500,000 sale: about $550.
• $800,000 sale: about $880.
• $1,200,000 sale: about $1,320.

That's often the smallest closing cost on the settlement statement. The surprises come from cities.

How do city transfer taxes work?

Under section 11911, a city can levy its own tax at half the county rate, or 27.5 cents per $500. When a city does that, its tax is credited against the county tax, so you don't pay both at full price.

Some charter cities go further. Because of their charter powers, they can set their own transfer taxes that don't follow the state formula and don't get the credit. Those rates vary widely, and some use tiers that rise with the sale price. A few big-city rates are many times the county base rate, so on a high-priced sale the difference can be thousands or tens of thousands of dollars.

Before you list or make an offer, check the current rate with the county recorder and the city. Rates change through local ballot measures.

Who pays: buyer or seller?

The statute doesn't assign the tax to either side. In practice:

• Your purchase contract decides who pays. The standard California forms include a section on transfer taxes.
• Where the contract follows local custom, the seller often pays the county tax, but customs vary by county and city.
• City taxes are sometimes split, sometimes all seller, sometimes all buyer.

It's negotiable. In a slower market, buyers sometimes ask sellers to cover more of it. In a competitive one, a buyer might offer to pay it to make an offer stand out.

Are any transfers exempt?

State law and local rules exempt certain transfers. Common examples include some transfers between spouses in a divorce, transfers into a revocable living trust that don't change who owns the property, gifts where nothing is paid, and certain transfers to government agencies. The details depend on the county and city ordinance. The recorder's office can tell you whether a transfer qualifies and what statement is required on the deed.

How does it show up at closing?

The escrow or title company calculates the tax and includes it on the settlement statement. The amount is usually printed on the face of the deed when it's recorded, which is why it's called a documentary tax. If the amount is wrong, the recorder may reject the deed or the county may follow up later.

Is this the same as a property tax reassessment?

No. The documentary transfer tax is a one-time charge at closing. Separately, under Proposition 13, a change in ownership usually triggers a reassessment of the property's taxable value to the purchase price, which can raise the annual property tax bill. Buyers should budget for both. The county assessor will typically send a supplemental tax bill after the sale to cover the difference for the rest of the tax year, and it often arrives months after closing, when people least expect it.

What should sellers do?

If you're selling, ask your escrow officer for a net sheet that shows county and city transfer taxes before you set a price. In a city with a high transfer tax, that line can change your bottom line more than any repair credit you negotiate.

What should buyers do?

Read the transfer tax section of your contract and ask who's paying what. If you're buying in a charter city with a tiered tax, find out where your price falls. A purchase price just over a tier line can carry a much bigger tax than one just under it.

FAQ

How much is California's documentary transfer tax? The county rate is 55 cents per $500 of value, or $1.10 per $1,000. Cities may add more.

Does the buyer or seller pay the transfer tax in California? State law doesn't say. The purchase contract decides, often based on local custom.

Is an assumed loan taxed? Value from a lien or encumbrance that remains on the property is excluded from the taxable amount.

Why is the tax so much higher in some cities? Some charter cities set their own transfer taxes outside the state formula, sometimes with tiered rates.

Next step

Ask the county recorder and city for the current rates where you're buying or selling. Then talk with a licensed local agent about local custom and how to handle transfer taxes in your offer or counteroffer.

Sources: California Revenue and Taxation Code section 11911.

Prop 37 passed on November 3, so California will create a state loan that covers up to 17% of the price of a newly built home for middle-income buyers who put at least 3% down. You can't apply yet. The California Housing Finance Agency (CalHFA) has up to a year after the law takes effect to launch it.

Searches for California down payment help are climbing, and a lot of what's circulating online about Prop 37 is fuzzy. This guide sticks to what the measure's text says and what it means if you're shopping for a home in the next year.

What does Prop 37 do?

Prop 37 lets CalHFA sell up to $25 billion in revenue bonds and use the money for a "middle-class homeownership loan." According to the Legislative Analyst's Office, each loan can cover up to 17% of the home price, and buyers must put down at least 3%. The LAO found no direct state or local cost, because borrowers' payments repay the bonds.

The loan is a second mortgage that sits behind your main loan. The measure's text also sets some consumer protections:

• The loan has to be fixed-rate.
• There's no penalty for paying it off early.
• The lender's origination fee is capped at 0.5% or $290, whichever is greater, and other lender fees need CalHFA's approval.
• If your credit score doesn't qualify you, you can ask the lender to look at bank statements, paystubs, assets and rent history instead.
• You can ask for a temporary hardship deferral of interest payments under rules CalHFA sets.

Unofficial results showed about 62% voting yes, according to Stateline. The Secretary of State still has to certify the vote.

Who qualifies for a Prop 37 loan?

The text lists four requirements for borrowers:

• Residency. You must have lived in California for at least one year before you apply.
• Owner occupancy. You have to move in as your primary residence within 60 days of closing.
• Income. Family income can't exceed 200% of the area median income for your county or metro area, adjusted for household size.
• Your own 3%. At least 3% of the price has to come from your own money, not a grant or another loan.

The text doesn't limit the program to first-time buyers. It does require you to hire a licensed California real estate agent or broker of your choosing, so you have your own representation through the purchase. CalHFA can also require homebuyer education, including for first-time buyers.

Which homes qualify?

This is the biggest limit. The loan only works on a qualified new home, which the text defines as:

• A newly built house, townhome, row house, condo or manufactured home, where you're the first buyer
• A condo or other unit in a building converted from nonresidential use, where you're the first buyer

Resale homes don't qualify. The price can't exceed 125% of the Federal Housing Finance Agency's conforming loan limit for a one-unit home in that county. The Secretary of State's voter guide describes that as homes priced below about $1.5 million.

That cap leaves out a lot of new construction in the priciest metros. Realtor.com found that only 41.7% of newly built single-family homes for sale in 2026 in both the San Jose and Los Angeles metros were priced under $1.5 million.

One more detail for new-build buyers. Builders can choose a "qualified builder option" with higher labor standards and different construction-defect claim rules. If your home falls under it, the builder has to tell you in writing before escrow closes. Read that disclosure carefully.

Is it free money?

No. It's a loan you repay, on top of your main mortgage, so you'll have two payments. CalHFA will set the interest rate, the repayment schedule and the prepayment terms, and the text tells it to keep borrower interest costs as low as it can while still repaying the bondholders.

The LAO says how much these loans cost compared with other down payment help is still unknown. Until CalHFA publishes rates, nobody can tell you whether a Prop 37 loan beats a bigger down payment or a different program.

When can I apply?

Not yet. Under the California Constitution, an initiative statute takes effect on the fifth day after the Secretary of State files the statement of the vote. From there, the text gives CalHFA up to one year to launch the program and adopt its rules.

As of November 10, CalHFA's homebuyer programs page doesn't list a Prop 37 loan. If you're planning to buy in the next few months, don't build your plan around it.

What down payment help can I use now?

CalHFA already runs programs through approved lenders. It doesn't lend to consumers directly. Two worth knowing:

• MyHome Assistance. A deferred-payment junior loan of up to 3.5% of the price or appraised value with a CalHFA FHA loan, or up to 3% with a CalHFA conventional loan. It's for first-time buyers who'll live in the home, and homebuyer education is required.
• California Dream For All. A shared appreciation loan of up to 20% of the price, capped at $150,000, for first-generation buyers. When you sell or pay off the first mortgage, you repay the loan plus a share of the home's appreciation. Vouchers are awarded by random drawing, not first come, first served.

What else should new-home buyers budget for?

A new build often brings costs the sticker price doesn't show:

• A supplemental property tax bill. Buying or finishing a home triggers a reassessment, and that bill often comes straight to you. Our guide to California supplemental tax bills explains the timing.
• Insurance. If the home is in a wildfire-prone area, coverage can be harder to place. Check the address with FloodFireCheck, and read how the California FAIR Plan works if regular insurers won't write the policy.

For prices and inventory this fall, see our California housing market update.

FAQ

Did California Prop 37 pass?

Yes, according to unofficial results reported after the November 3, 2026 election, with about 62% voting yes. The Secretary of State still has to certify the final count.

How much can a Prop 37 loan cover?

Up to 17% of the purchase price of a qualified new home. You have to put at least 3% down from your own money.

Can I use Prop 37 to buy a resale home?

No. It's limited to newly built homes, or units in converted nonresidential buildings, where you're the first buyer. The price also has to fall under a county cap tied to conforming loan limits.

When will Prop 37 loans be available?

CalHFA has up to one year after the measure takes effect to start the program. It wasn't listed among CalHFA's homebuyer programs as of November 10, 2026.

Next step

If you're weighing a new-construction purchase in California, talk with a licensed local real estate agent. Prop 37 requires buyers to have their own agent anyway, and a good one can compare builder incentives, today's CalHFA options and the timing of the new program for you.

Sources: California Secretary of State, Official Voter Information Guide, Prop 37; Prop 37 text of proposed law; Legislative Analyst's Office analysis of Prop 37; California Constitution Art. II, Sec. 10; Stateline, Nov. 9, 2026; KCRA, California voters approve Proposition 37; Realtor.com, California housing ballot results; CalHFA homebuyer programs; CalHFA MyHome Assistance; CalHFA California Dream For All.

California home sales slowed in September 2026, but prices held. The California Association of Realtors (C.A.R.) reported a seasonally adjusted annual pace of 260,410 existing single-family sales, down 6.5% from a year earlier. The statewide median price was $899,720, up 1.7%. Homes sold in a median 29 days.

"Are home prices going down?" has been a rising Google search in California this fall. Based on C.A.R.'s September report, the short answer is no, not statewide. Sales are falling. Prices aren't, at least not yet.

What happened to California home sales?

They pulled back. C.A.R.'s September numbers, released October 19, 2026:

• 260,410 existing single-family homes on a seasonally adjusted annualized basis
• Down 3.4% from 269,620 in August
• Down 6.5% from 278,540 in September 2025
• Year-to-date sales still up 0.8%

C.A.R. says statewide sales have stayed below 300,000 for 48 straight months. It points to mortgage rates. The 30-year fixed averaged 6.86% in September, up from 6.67% in August and 6.35% a year earlier, by C.A.R.'s calculation from Freddie Mac data.

Are California home prices falling?

Not statewide. September's median was $899,720, down 0.2% from August and up 1.7% from September 2025. C.A.R. says that was the fifth straight month of year-over-year gains.

A few other price markers from the report:

• Median price per square foot: $434, up from $427 a year earlier
• Share of sales at $1 million or more: 35.9%, up from 35.2% in August
• Sale-to-list price ratio: 98.8%, versus 98.2% a year earlier
• Condo and townhome median: $640,000, down from $650,000 a year earlier

One honest caveat. C.A.R. says a bigger share of high-priced homes in the mix helped hold the median up. It also expects "more downward pressure on home prices for the remainder of the year." So prices are steady, with a lean toward softer.

How much inventory is there?

A bit more than last year, mostly because fewer homes are selling. C.A.R. reported:

• Unsold Inventory Index of 3.7 months, the same as August and up from 3.6 a year ago
• Active listings up 2.7% from August and 0.5% from a year earlier, the first annual increase in eight months

C.A.R. says the listing increase came from the slowdown in sales, not a wave of new sellers. Many owners with low-rate mortgages are staying put.

How do California regions compare?

Very differently. From C.A.R.'s September regional numbers:

• San Francisco Bay Area: median $1,325,000, up 1.9% year over year. Sales down 3.1%. Unsold inventory 2.6 months
• Southern California: median $895,000, up 3.0%. Sales down 9.1%
• Central Coast: median $1,049,500, up 4.4%. The only region with higher sales, up 4.4%
• Central Valley: median $500,000, basically flat. Sales down 2.5%
• Far North: median $377,150, down 3.4%. Sales down 9.0%
• Inland Empire: median $601,030. Sales down 10.2%. Median 41 days on market

County numbers swing a lot more, especially in small counties. C.A.R. warns those big percentage moves often reflect low sales volume, not real shifts in demand.

What does this mean if I'm buying?

You may have a little more room than you did in the spring. Sales are down, listings are up slightly, and buyers are paying a bit under list on average. Don't expect a fire sale, though. Statewide, homes sold faster than a year ago (29 days versus 32), and the sale-to-list ratio actually rose. Good homes in good areas still move. C.A.R. President Tamara Suminski said buyers "may have more room to explore their options, negotiate and focus on finding the right home rather than simply hurrying to make an offer."

Budget for more than the price. Rates are higher, insurance can be hard to get in fire-prone areas, and your first year brings a supplemental property tax bill. Read the seller disclosures the day you get them.

What does this mean if I'm selling?

Price for the market you're in, not the one from 2022. Sales are slower, and buyers have a bit more choice. A home that's priced right and shown well still sells. In the Bay Area, homes are going in a median 19 days. In the Inland Empire, it's 41.

If you're 55 or older and planning to buy again in California, look at Prop 19 base year transfers before you set your next price range.

FAQ

What is the median home price in California right now?
$899,720 for existing single-family homes in September 2026, according to C.A.R. That's up 1.7% from a year earlier.

Are California home sales up or down?
Down. September's annualized pace of 260,410 was 6.5% below September 2025, though year-to-date sales were up 0.8%.

How long does it take to sell a home in California?
The statewide median was 29 days in September 2026, compared with 32 days a year earlier.

Is inventory rising in California?
Slightly. Active listings were up 0.5% year over year, and the Unsold Inventory Index was 3.7 months.

Will prices drop the rest of 2026?
C.A.R. expects some downward pressure through year end as demand softens and the seasonal slowdown sets in. It hasn't forecast a specific drop.

Next step

A licensed local real estate agent can pull the numbers for your own county and neighborhood, which often look very different from the statewide median. Ask for recent sales near you and current days on market. More guides are on the California real estate page.

Sources: C.A.R. September 2026 home sales and price report.

California sellers of most one-to-four unit homes must give buyers a Real Estate Transfer Disclosure Statement (TDS) and a Natural Hazard Disclosure (NHD) statement. If those forms reach the buyer after an offer is accepted, the buyer gets three days after in-person delivery, or five days after mail or electronic delivery, to cancel in writing.

That cancellation window is the piece most buyers don't know about. It's in Civil Code section 1102.3, and it's one reason California agents push to get disclosures delivered early.

What is the Transfer Disclosure Statement?

The TDS is the seller's written statement about the property's condition. California's disclosure law, Civil Code sections 1102 through 1102.19, requires it for sales of single-family residential property, with some exemptions.

The form has sections the seller fills in, plus sections for the agents. Section 1102.3 says the cancellation clock starts once Sections I and II, and Section III if the seller has an agent, are completed and delivered to the buyer or the buyer's agent. A seller can't just hand over a half-done form and start the clock.

On timing, section 1102.3 says the seller has to deliver it "as soon as practicable before transfer of title." For a sale by real property sales contract or a lease with an option to buy, it's due before the contract is executed.

What is the Natural Hazard Disclosure?

The NHD tells the buyer whether the property sits in certain state or federally mapped hazard areas. Under Civil Code section 1103, the zones are:

• A FEMA special flood hazard area (any Zone A or V)
• An area of potential flooding from dam failure, under the Water Code
• A very high fire hazard severity zone
• A state responsibility area for wildland fire, subject to defensible space rules
• An earthquake fault zone
• A seismic hazard zone, which covers landslide and liquefaction areas

The duty is triggered if the seller or the seller's agent actually knows the property is in the zone, or if the local agency has received the map and posted notice at the county recorder, assessor, and planning offices. Most sellers order an NHD report from a third-party provider that checks the maps.

Section 1103 also says any waiver of these rules is void. A buyer can't sign them away.

How does the 3-day or 5-day cancellation work?

If a required disclosure, or a material amendment to one, is delivered after the buyer's offer is accepted, the buyer can terminate the offer by sending written notice to the seller or the seller's agent:

• Within three days after delivery in person
• Within five days after delivery by mail
• Within five days after electronic delivery, if the parties agreed to do the deal electronically

That's the statute. Your purchase contract may have its own contingency periods on top of it. Know both sets of dates.

What should buyers do with these forms?

Read them, slowly, the day you get them. Then check the parts that matter to money.

A few practical steps:

• Compare the TDS against your home inspection. If the seller says "no known leaks" and the inspector finds water stains, ask
• If the NHD shows a flood zone, get a flood insurance quote before your contingencies end
• If it shows a very high fire hazard severity zone, start shopping home insurance right away. Some buyers end up on the California FAIR Plan
• If it shows an earthquake fault or seismic hazard zone, read up on earthquake coverage

You can also look up an address yourself. FloodFireCheck gives a quick read on flood and fire exposure, which is a useful second look next to the NHD report.

What should sellers do?

Fill out the TDS honestly and completely. When in doubt, disclose. Problems you knew about and didn't mention are the classic source of post-closing lawsuits.

Order the NHD report early so it's ready to go with the listing packet. Delivering both forms before the buyer makes an offer, where your agent's process allows it, means there's no post-acceptance cancellation window to worry about.

If something changes after delivery, like a new roof leak, amend the disclosure. Remember that a material amendment delivered after acceptance restarts the buyer's right to cancel.

Selling to buy again? If you're 55 or older, check whether Prop 19 lets you take your tax base with you.

FAQ

Is a seller disclosure required in California?
For most sales of single-family residential property, yes. Civil Code sections 1102 and 1103 require the Transfer Disclosure Statement and the Natural Hazard Disclosure, with some exemptions.

How long does a buyer have to cancel after late disclosures?
Three days after in-person delivery, or five days after delivery by mail or electronic delivery, under Civil Code section 1102.3.

What hazard zones go on the NHD?
FEMA flood zones A or V, dam-failure inundation areas, very high fire hazard severity zones, state responsibility wildland fire areas, earthquake fault zones, and seismic hazard zones.

Can a buyer waive natural hazard disclosures?
No. Civil Code section 1103 says any waiver is void as against public policy.

Does an as-is sale skip disclosures?
Selling as is doesn't remove the statutory disclosure duties. Ask your agent which exemptions, if any, apply to your sale.

Next step

A licensed local real estate agent can get disclosures delivered at the right time, explain each hazard zone on the report, and track your cancellation and contingency deadlines. Bring any questions about the forms before your windows close. More guides are on the California real estate page.

Sources: Cal. Civ. Code § 1102.3, Cal. Civ. Code § 1103.

Under Proposition 19, California homeowners who are 55 or older, severely and permanently disabled, or victims of a wildfire or natural disaster can move their property tax base to a replacement home anywhere in the state. You can do it up to three times. The replacement has to be bought or built within two years of selling the original.

This is one of the biggest money questions for older California owners thinking about downsizing. A low Prop 13 tax base built up over decades can be worth thousands of dollars a year. Prop 19 lets you keep a lot of it, if you get the timing and the value test right.

Who qualifies for a Prop 19 base year transfer?

The State Board of Equalization (BOE) lists three groups. You only need to fit one:

• Homeowners at least 55 years old
• Homeowners who are severely and permanently disabled
• Homeowners whose principal residence was damaged by a wildfire or a natural disaster declared by the Governor

You must meet the qualification on the date the original home is sold. The original home also has to be your principal residence and eligible for the homeowners' or disabled veterans' exemption, either when you sell it or within two years of buying the replacement. The BOE says there's no minimum time you have to have lived there.

What are the timing rules?

Buy or build the replacement within two years of selling the original. The order can go either way.

The BOE says that if you buy the replacement first, the original has to sell within two years of that purchase. There's a cost to doing it that way. Until the original sells, you pay property tax on the replacement at its full market value, and there's no refund for that period.

This is not done through escrow. The BOE is direct about it: you file a claim form with the assessor in the county where the replacement home is located, after both deals close and you're living in the new place.

How does the value test work?

This is where Prop 19 differs most from the old rules. Under Props 60 and 90, the replacement had to be of equal or lesser value, and usually in the same county. Under Prop 19, the replacement can be any value, anywhere in California.

If it's of "equal or lesser value," your old base year value transfers with no adjustment. The BOE defines that as:

• 100% or less of the original home's market value, if you bought the replacement before selling
• 105% or less, if you bought within the first year after selling
• 110% or less, if you bought within the second year after selling

If the replacement costs more, you still get a transfer. The difference is added on top.

The BOE gives this example. You sell a home worth $400,000 with a factored base year value of $100,000. Within a year, you buy a $600,000 replacement. The adjusted value of the original is $420,000 (105% of $400,000). The $180,000 difference gets added to your $100,000 base. Your new taxable value is $280,000, not $600,000.

Which form do I file?

File with the assessor in the county where the replacement is located, within three years of buying or finishing the replacement:

• BOE-19-B for persons at least age 55
• BOE-19-D and BOE-19-DC for severely and permanently disabled persons, with a certificate of disability
• BOE-19-V for victims of wildfire or other natural disaster

Don't wait for the deadline. File once you've moved in and both transactions are recorded.

Can I use it if my child is on title?

Yes. The BOE says you don't have to be the sole owner of the replacement home. As long as you're one of the purchasers and you owned and lived in the original, you can transfer your base year value to the entire replacement home.

The BOE also says a homeowner who already used Prop 60 or 90 once can still use Prop 19 three more times.

Inherited homes have their own Prop 19 rules on parent-child transfers. Those are separate and stricter. Talk to a tax professional about those.

What should I do before I list?

Get the numbers first. Ask the assessor for your current factored base year value. Get a realistic estimate of what your home would sell for. Then figure out what replacement price keeps you inside the 100%, 105%, or 110% line.

After you buy, file the homeowners' exemption on the new place too. See supplemental tax bills and the $7,000 exemption for how that works. And check what's happening in your target market. Our California housing market update has the latest statewide numbers.

FAQ

How many times can I use Prop 19 to transfer my tax base?
Three times, for qualifying owners 55 and older or severely disabled, according to the BOE.

Can I move to a different county?
Yes. Under Prop 19, the replacement home can be anywhere in California.

Can the replacement home cost more than my old one?
Yes. You still get a transfer, but the amount above the equal-or-lesser-value line is added to your transferred base.

Is the transfer handled in escrow?
No. You file the claim with the replacement county's assessor after both transactions are done and you live in the new home.

What's the filing deadline?
Within three years of buying the replacement or completing its new construction.

Next step

A licensed local real estate agent can help you price both sides of a Prop 19 move and time the sale and purchase so the replacement stays within the value test. Pair that with your county assessor and a tax professional for the filing. More guides are on the California real estate page.

Sources: BOE: Proposition 19.

If you bought a California home this year, expect a supplemental property tax bill on top of your regular one. The county reassesses it at purchase-date value and bills the difference for the rest of the fiscal year. Also file for the homeowners' exemption. It cuts $7,000 from taxable value, and the deadline for the full year is February 15.

Both of these catch new owners off guard. The supplemental bill usually shows up months after closing, often after escrow is long done, and it doesn't always go through your mortgage impound account. The exemption is small, but it's yours, and the county won't apply it unless you ask.

Why did I get a supplemental tax bill?

Because buying a home is a "change in ownership" under Proposition 13. The California State Board of Equalization (BOE) explains that the county assessor reappraises the property at its current market value as of the date you took ownership.

The assessor then subtracts the prior owner's assessed value from your new one. That difference is the net supplemental value. The county auditor-controller turns it into a prorated bill covering the period from the first day of the month after your purchase through June 30, the end of the fiscal year.

If you bought between January 1 and May 31, the BOE says you'll get two supplemental assessments. One covers what's left of the current fiscal year. The second covers the entire next fiscal year, because the regular roll for that year was already set on January 1.

Supplemental bills can go down too. If the new value is lower than the old one, the BOE says you get a refund.

How does Prop 13 set my taxes going forward?

Proposition 13 limits the general property tax rate to 1% of assessed value, plus any rate needed to pay for local voter-approved bonds. That's why your bill shows a little more than 1% in most places.

Your purchase price, more or less, becomes your base year value. After that, the BOE says your assessed value generally can't rise more than 2% a year while you own the home, even if market values climb faster. It resets on the next change in ownership or when new construction is completed.

That's the core of the system. Long-time owners often pay much less than new buyers on the same street, because their base year is older.

Should my lender pay the supplemental bill?

Ask before you assume. Los Angeles County's Treasurer and Tax Collector, for one, says supplemental bills are mailed to the property owner, not the lender, even when you have an impound account. Call your servicer and ask. If it won't pay, the bill is on you, with its own due dates.

A good habit is to set money aside after closing. A rough estimate: take the difference between your purchase price and the prior owner's assessed value, multiply by your local tax rate, then prorate for the months left in the fiscal year. Your county assessor or tax collector may have an estimator.

How do I claim the $7,000 homeowners' exemption?

The California Constitution gives a $7,000 reduction in taxable value for an owner-occupied home. At a 1% rate, that's roughly $70 a year. Not huge, but it's real money, every year.

The BOE's rules:

• The home has to be your principal residence on the lien date, January 1
• You file Form BOE-266, Claim for Homeowners' Property Tax Exemption, with your county assessor
• It's a one-time filing. You don't re-file every year
• First-time filers can file any time after becoming eligible, but no later than February 15 to get the full exemption for that year

Many county assessors mail the form to new owners after a sale is recorded. If you haven't seen one, download it from your assessor's site.

The BOE also says supplemental assessments don't wipe out an exemption you're eligible for. If granted, the exemption applies to the supplemental amount as well.

What if I move out or rent the home?

Tell the assessor. The BOE says you're responsible for notifying the county when you're no longer eligible. December 10 is the last day to end the exemption without a penalty.

If you sell and buy again in California and you're 55 or older, severely disabled, or a disaster victim, you may be able to bring your old tax base with you. See California Prop 19 base year transfers.

FAQ

What is a supplemental property tax bill in California?
A prorated bill for the difference between the prior assessed value and your new market-value assessment after a purchase or completed new construction. It's separate from the regular annual bill.

Why did I get two supplemental bills?
The BOE says purchases between January 1 and May 31 get two: one for the rest of the current fiscal year and one for the full next fiscal year.

How much does the homeowners' exemption save?
It reduces taxable value by $7,000. At the 1% base rate, that's about $70 a year, before local bond rates.

When is the homeowners' exemption deadline?
File BOE-266 by February 15 to get the full exemption for that year. It's a one-time filing.

Does Prop 13 cap my taxes at 2% a year?
It generally caps increases in assessed value at 2% a year while you own the home. Voter-approved bond rates and special assessments can still change.

Next step

A licensed local real estate agent can walk you through what to expect on your first tax bills and point you to your county assessor's forms. If you're still shopping, ask for the current assessed value on any home you're considering so you can estimate the supplemental bill. More guides are on the California real estate page.

Sources: BOE: Supplemental Assessments, BOE: California Property Tax: An Overview (Pub. 29), BOE: Homeowners' Exemption, LA County TTC: New Property Owner.