Property taxes play a large role in the overall affordability of a home. In addition to mortgage payments, utility bills, maintenance costs, and homeowner’s insurance, property taxes can tip the budget scale.
However, property taxes are a must. They cover essential services, such as police and emergency services, hospitals, schools, public transport, infrastructure, park maintenance, and other municipal government activities.
California ranks 17th among states in the U.S. for highest property taxes. While state laws impact L.A. to a certain extent, the county itself taxes much more compared to other counties in California.
Los Angeles County is also one of the most expensive places in the country when it comes to taxes, and is ranked as having the eighth highest tax rate in the U.S. as a result of high sales tax rate and property values. On average, L.A. homeowners pay 0.59% of their properties’ assessed market value in property taxes. Considering the median home price in L.A. County is currently $535,500, that would translate into annual property taxes of $3,195.45.
Luckily, homeowners in L.A. can typically deduct 100% of their property taxes from taxable income on a Federal Income Tax Return as an itemized deduction. The state of California might also allow a deduction of some or all property taxes on a California income tax return.
Having said that, certain areas in this California county are more expensive than others.
Here are the spots in L.A. County that currently have the highest property tax percentages in the area.
- Industry – 1.926277
- Bell – 1.553634
- Compton – 1.531274
- San Fernando – 1.463421
- El Monte – 1.397056
- Huntington Park – 1.389221
- Palmdale – 1.386055
- Maywood – 1.350846
- Montebello – 1.322016
- Inglewood – 1.279126
- San Gabriel – 1.268112
- Monrovia – 1.222003
- Los Angeles – 1.220441
- Baldwin Park – 1.191021
- Lynwood – 1.185855
- Monterey Park – 1.183800
- Carson – 1.179221
- Gardena – 1.179221
- Lomita – 1.179221
- South Gate – 1.179221
These tax percentages are based on the highest tax rate for current assessed values of properties, and don’t take into consideration assessments for city services like sewage, lighting, and others.
While these numbers tend to be high compared to other counties in the state – as well as other areas the country as a whole – the maximum amount of tax on real property is capped at 1% of the fair market value and can’t be increased more than 2% from the previous year.
Homes are reassessed when they sell, or after any major renovations are made. Significant improvements to homes can trigger a reassessment and most likely be subject to higher property taxes as a result.
Get in touch with our agents for more information and to stay up-to-date on the real estate market in the area. We specialize in the luxury market in L.A. and surrounding areas, and would love the opportunity to help you realize your real estate goals.
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(all data current as of 7/23/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.