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Property Taxes On Investment Homes Lower Than Owner Occupied Homes

  

New homeowners excited about getting a property may not remember they'll also be getting taxed.

"Property taxes are one of those potentially hidden costs that folks may not think about," says Daren Blomquist with research firm ATTOM Data Solutions.

He says homeowners in the Sacramento-Roseville-Arden Arcade metro area paid an average of $3,600 in annual property taxes last year. Countywide it was $3,100, making Sacramento County the sixth highest in the state.

Placer County had one of the state's highest rates. Placer County residents who own a single-family home paid an average of $4,800 in property taxes last year, according to the ATTOM Data Solutions analysis that looked at 35 California counties.

"And out of those 35 counties, Placer County - the tax rate there, property tax rate - ranked third highest in the state behind Kern County and Riverside County."

But relatively speaking, California still has one of the lowest tax rates in the country because of Proposition 13 property tax limits.

Meanwhile, Californians who own the home they live in pay about $800 more in property taxes - on average - than investors who buy a home and don't live in it. That's because investors tend to own lower-value homes.

"The average value of owner-occupied properties in California is over $642,000," says Blomquist. "Whereas the average value of investment properties in California is $536,000."

"Investors on average are paying $4,100 in annual property taxes compared to about $4,900 for owner-occupants," says Blomquist.

The report analyzed data collected from county tax assessors.

Steve Milne

Morning Edition Anchor & Reporter

Steve is the voice of Capital Public Radio News as anchor of Morning Edition and Insight. He covers stories on a wide range of topics including: business, education, real estate, agriculture and music. Steve also produced stories for CapRadio.org.   Read Full Bio