Property taxes are a key part of owning a home in California. It is the obligation of homeowners to pay these taxes, which fund essential local services like schools and emergency response.
If you are a first-time homeowner or are considering buying a house in Hillsborough, property taxes should be included in your budget. Read on to learn more about this type of tax so you can be financially prepared for this expense and avoid any penalties.
The Fundamentals of California Property Tax
The property tax system in the state of California differs from many other states due to Proposition 13, a law that was passed in 1978. Under this law, the annual increase of your property’s taxable value is limited to no more than 2%, regardless of any increase in market value.
In California, property tax is calculated at a standard rate of 1% of your property’s assessed value, plus any additional voter-approved charges. Annual increases are capped at 2%.
Property taxes are based primarily on the purchase price of the property rather than current market value. Reassessment typically occurs only when there is a change of ownership or new construction.
There are two deadlines for property taxes in California – November 1 and February 1. If these dates fall on weekends or holidays, the deadline extends to the next business day. These deadlines must be met to avoid a penalty of an additional 10% to your tax bill.
Calculating Your Hillsborough Property Taxes
In California, property taxes are calculated following this formula:
Annual property tax = Property value × (Property tax rate % ÷ 100)
Monthly property tax = Annual property tax ÷ 12
Tax rates vary by location since local special assessments and bond measures can add to the base 1% rate. In Hillsborough, CA, the effective property tax rate is 1.30%. This is notably higher than the national median property tax rate of 1.02%.
Mello-Roos taxes or Hillsborough, CA, special assessments may apply in some communities, particularly in newer developments. Since Mello-Roos districts issue annual tax bills until their bonds are paid off, it’s best that you inquire about these assessments before buying a property.
Homeowners can pay their taxes through various methods. The most convenient way is using the county’s online payment system for fast processing and immediate confirmation. Other payment options include e-checks, credit card payments, via mail, and in-person at the county tax collector office.
Key Tax Exemptions for Homebuyers
Several property tax exemptions and reductions are offered to qualified homeowners in California. These can significantly lower annual tax obligations and provide substantial savings for property owners.
The Homeowners’ Exemption is one of the most common property tax breaks in the state of California. This exemption provides a $7,000 reduction in assessed value for the principal residence.
Disabled Veterans Exemptions are available to veterans with service-connected disabilities. This exemption can provide partial or complete property tax relief depending on the disability rating.
Homeowners aged 55 and above may qualify for significant tax benefits through Propositions 60/90, which allow them to transfer their tax base when buying a new home of equal or lesser value.
If you qualify for any of these property tax exemptions, you must file the appropriate forms with your county assessor’s office. For the Homeowners’ Exemption, you’ll need to complete and submit a claim form affirming the property as your primary residence.
Most exemptions must be filed by February 15 for you to receive the full benefit for that tax year. Late filings may result in prorated benefits.
Navigating an Assessment Appeal
If you have determined that your property tax assessment is incorrect, you have the right to challenge these values through a formal appeal process.
An assessment appeal can be filed when:
- The assessed value exceeds the market value
- There has been a decline in property value
- There is property damage
- The assessment states incorrect property information
- The assessment states an incorrect change in ownership
The appeal process requires careful preparation and documentation. Make sure you review the current assessment notice for accuracy.
Next, gather evidence supporting your claim, including:
- Comparable property sales data
- Recent appraisals
- Photos showing the condition of the property
The hearing involves presenting your case before the board. You may represent yourself or hire professional representation, such as an attorney or property tax consultant.
The deadline for regular assessments is from July 2 through November 30, 2025. Since November 30, 2025 falls on a Sunday, the deadline will roll to the next business day, Monday, December 1, 2025.
Conclusion
The property tax structure in California provides stability and predictability for homeowners, but it also comes with complexities, especially for those navigating ownership transfers and appeals.
If you need assistance with your property taxes, feel free to give us a call at (650) 629-9898 or email us at teamtapper@gmail.com with your concerns.
Frequently Asked Questions
Property taxes in Hillsborough are calculated based on the assessed value of the property. The standard tax rate is 1% of the assessed value.
Proposition 13 is a law that was passed in 1978. Under this law, the annual increase of your property’s taxable value is limited to no more than 2%, regardless of any increase in market value.
Yes. If you have determined that your property tax assessment is incorrect, you have the right to challenge these values through a formal appeal process.
Tax exemptions available to homeowners include Homeowners’ Exemption, Disabled Veterans Exemptions, and Propositions 60/90.
In Hillsborough, CA, the effective property tax rate is 1.30%.
