California Property Tax Guide

California's property tax system follows a specific annual calendar that directly affects real estate closings. The lien date is January 1 of each year at 12:01 a.m. — this is when taxes become a lien on the property for the coming fiscal tax year starting July 1. After the lien date, title evidence must show taxes as a lien for the coming fiscal year. The fiscal tax year runs from July 1 through June 30.

Key dates: April 15 is the last day to file for 100% Veterans or Homeowner's Exemption. July 1 is when the current fiscal tax year begins. November 1 is when the first installment is due (covering July 1 through December 31). December 1 is the last day to file for 80% Veterans or Homeowner's Exemption. December 10 is when a 10% penalty is added to the first installment — if December 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.

February 1 is when the second installment is due (covering January 1 through June 30). April 10 is when a 10% penalty plus administrative charge attaches to the second installment — again, if April 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day. June 30 is the critical deadline: if either or both installments remain unpaid by 5 p.m., the property tax becomes defaulted and additional costs and penalties accrue. Property may be sold at public auction after five years of delinquency.

How property taxes are determined: property taxes are governed by California State law and collected by the county. The County Assessor assesses the value of the property — generally the cash or market value at the time of purchase. This value increases no more than 2% per year until the property is sold or new construction is completed. The Auditor-Controller applies the appropriate tax rates (including the general tax levy, locally voted special taxes, and any city or district direct assessments). The Tax Collector prepares bills based on these calculations, distributes them, and collects the taxes.

Tax impound reserves at closing vary by month. The escrow officer prorates property taxes between buyer and seller based on the closing date. Lenders typically require impound accounts to ensure taxes are paid on time.

Team Goeglein at Fidelity National Title accurately calculates property tax prorations on every closing across the South Bay and Westside LA. Matt Goeglein and Xavier de la Piedra IV ensure that all tax obligations are properly accounted for in your net sheet and closing statement.