How much is the property tax in California?

Author: Miss Olivia Chrysanthemum Fragrant

Link: /question/306 19338/ answer/153 108496.

The property tax in the United States is the basic guarantee for permanently holding real estate. The main body of property tax collection is county government, municipal government and school district. From 1792, it has a long history. After long-term operation and adjustment, it has also formed a relatively perfect tax policy system. Every state in the United States collects property tax every year, which is mainly composed of mortgage interest, insurance premium and local tax.

However, the standards of property tax collection vary from state to state, and the tax rate ranges from 1% to 3%, which will change every year according to the budget needs of local governments. At the same time, the frequency of collecting property tax in different regions is different every year. For example, Philadelphia only collects it once a year, and New Jersey collects it four times a year. If the tax payment is stopped, the ownership of the house belongs to the US government, and the government has the right to dispose of the property that has been overdue for a long time.

The tax base of American property tax is determined by the appraised value of the house, and the government will regularly estimate the fair market price of the house. Under the condition of constant tax rate, the higher the valuation of the house, the more taxes need to be paid. The property tax rate in the United States changes frequently, and its determination method is that the government divides the difference between the total revenue of other governments except property tax and the total budget for the next fiscal year by the market value of local real estate to set the property tax rate. The total tax rate of real estate tax is the sum of local tax rates at state and sub-state levels, which generally consists of state tax rate, city and county tax rate and school district tax rate.

The result of house appraisal mainly depends on the surrounding house price, plot size, house area, house type, house age and housing facilities. According to American law, the appraisal value of real estate is determined according to a certain proportion of market value, for example, the proportion stipulated by California is 40%. The valuation of real estate consists of two parts: one is the value of the house itself (mainly based on the value at the time of purchase, the added value of decoration and the added value of the market), and the other is the value of the land. According to the laws of the federal government, real estate is divided into main residence, second residence and rental real estate. All kinds of houses will have different valuations according to the nature of the houses, so they need to pay corresponding taxes and fees.

& amplt； img src = "/50/v2-869 fff 1 1a7f 40 f 15 1 1ab 7 f 5a 93 aa 255 _ HD . png " data-raw width = " 142 / kloc-0/ " data-raw height = " 103 1 " classgt； For investment houses, such as inherited famous old houses, or land that is about to appreciate. The expenditure of this kind of property belongs to investment expenses, not self-occupation, and all property taxes/local taxes can only be deducted from the tax items applicable to self-occupation. Therefore, if China people intend to invest overseas, in the process of overseas capital allocation, by studying relevant laws, they can find the appropriate location of their own houses, which can effectively save tax expenditure.

In addition, if real estate includes rental income, the degree of participation in rental management will also have a very important impact on the tax base. If overseas investors don't manage their houses very well, they simply rent them to guests without spending time and energy to manage them, and the rent accounts for 30% of the total income. The Internal Revenue Service (IRS) will provide many concessions and exemptions to overseas holders who actively participate in housing management, that is, taxable income = rental income-expenses (loan interest, property tax, maintenance expenses, depreciation, etc. The net tax is calculated according to the general income tax rate.

& amplt； img src = "/50/v2-b0cf 19 c 522 f 0 b 7898 df 3 1 599 e 9 B2 d0ab _ HD . jpg " data-raw width = " 850 " data-raw height = " 569 " class = " origin _ image zh-light box-thumb " width = " 850 " dat a-ori ginal = "/v2-b0cf 19 c 522 f 0 b 7898 df 365438+gt； As an important part of American real estate investment, real estate tax is a part that buyers should pay attention to. Although the United States needs to pay property tax every year, it seems that owning a property or renting a house is a great pressure, but in fact, property tax has brought many benefits. At the same time, if the tax policy can be effectively used, the property tax can be appropriately reduced or exempted: although the main body of property tax collection is the local government, after receiving all the tax, the government still invests it in the construction of local infrastructure and education funds. If the owner holds a suite for a long time, the proportion of property tax will be relatively low: therefore, the property tax policy in the United States encourages long-term holding of property.

American property tax can be deducted from income tax. When calculating income tax, the interest expenses of American property tax and housing mortgage loan can be deducted from income, which reduces the tax base of income tax, thus reducing the comprehensive tax of taxpayers. In addition, it should be noted that people with American citizenship can enjoy the tax relief policy for self-occupied houses, but not for investment houses. At present, 29 states and the District of Columbia in the United States give tax credits to residential properties. Among them, the number and calculation method of mortgage interest can be deducted from the taxable income in the preferential reduction and exemption options for self-occupied and rented houses. Whether taxpayers buy a new house or apply for a new loan, a high proportion of mortgage interest in the first few years of repayment can save a lot of taxes.

& amplt； img src = "/50/v2-0 de 2d 45 13 1 bebb 8 a 8 e 2 f 00477 b 465762 _ HD . png " data-raw width = " 940 " data-raw height = " 702 " class = " origin _ image zh-light box-thumb " width = " 940 " dat a-original = "/v2-0 de 2d 45 13 1 bebb 8 e 2 f 0gt； As a new field in recent years, overseas fund-raising has a big information gap for beginners. Chinese in North America, led by old immigrants, are still used to reading paper media and even contacting businesses through the yellow pages phone book. The Internet platform represented by China House has more advantages in communication and efficiency. In recent years, it has gradually begun to change the business logic of the real estate investment industry. For property buyers, choosing the least intermediate links to set up a business can be constantly changing.

Real estate tax is essentially a tax levied by the American government to judge the economic ability of owners through the value of houses. Different from the domestic real estate industry, buying a house in the United States is an investment in future value, and real estate tax will be largely used to improve education, public security and living facilities in this area. It is wise to choose the most comfortable way to accept the differences brought about by cultural differences.

Reference reading:

In the United States, I don't pay taxes on remittances, and the IRS wants to arrest me.

What tax benefits can I enjoy if I own American real estate?

Researcher, China Academy of Social Sciences: Research shows that the property tax has limited effect on curbing the rise of housing prices.

Edited on 20 17-03-22

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All 50 States in the United States levy property tax, which is the main source of income for local governments. At present, the property tax rate is 1%-3%, which is the most basic guarantee for the permanent holding of real estate. The purpose of levying property tax is to maintain the expenditure of local governments and improve public facilities and welfare. Therefore, the main body of property tax collection in the United States is the county government, the municipal government and the school district, while neither the federal government nor the state government collects property tax. So how does the United States levy a property tax?

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1. Favorite theme

Local governments in the United States levy property tax, and local governments determine the tax rate according to their actual conditions and collect it according to law. This tax is mainly used for education and public services in residential areas. The federal and state governments in the United States do not levy property taxes. The main body of American property tax collection is county government, municipal government and school district. The collection ratio between them is 1: 1:5.

Determine tax rate

The tax rate of property tax is set by local governments according to budgets at all levels. The total amount of property tax and the taxable value of houses in the budget change every year, so the tax rate of property tax is different every year. If the annual expenditure of a local government is $200 million and the total real estate valuation of this place is $654.38+000 billion, then the property tax rate of that place in that year is 2%. If, after one year, the local economy develops, house prices rise, and the total value of real estate appraisal rises to 20 billion US dollars, but the local government expenditure remains unchanged at 200 million US dollars, the real estate tax rate in that year is 1%. In other words, as house prices rise, the property tax may decrease.

Local governments formulate unified local property tax rates according to local financial needs. The property tax payable is the product of the property tax rate and the property tax price. The property tax price is generally the fair price of the real estate market, but some local governments allow certain discounts, and the government will provide a discount rate. In this case, the real estate taxable value is the product of the fair price of the real estate market and the discount rate.

Real estate appraisal is generally given by registered professional appraisers. Because most houses in the United States are single-family, there are great differences between houses, including plot size, usable area, house style and so on. Appraisers generally use the sales comparison method, that is, compare the prices of three or four houses sold nearby in the last six months, and adjust them according to the size of the plot, the type of house, the age of the house, and the supporting facilities of the house. Another method is replacement cost method, but this method is generally aimed at new houses, mainly considering the cost of rebuilding the same house, and then adjusting it according to land price and depreciation.

The specific procedure for determining the tax rate is: the municipal and town committees pass the budget, and governments at all levels determine the amount of property tax according to the total budget revenue and expenditure, and then determine the tax rate of property tax according to the assessed tax value of the house. The calculation formula of the tax rate is: the property tax amount to be levied in the budget ÷ the total taxable value of the property = the property tax rate.

The tax rate should be limited, because the federal law stipulates the maximum tax on property (mainly real estate). Real estate assessment has been officially approved by the local legislature and has become the local statutory tax basis. Accordingly, two forms of tax rates have been formed. One is the nominal tax rate, which is applicable to valuation; The first is the actual tax rate, which is applicable to the market price. Due to the different valuation ratios in different places, the tax rates vary greatly from place to place.

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The above picture shows the average tax rate of personal property collected by American States, excluding commercial property. The three states with the highest property tax rates are New Jersey, Illinois and New Hampshire. The three lowest states are Hawaii, Alabama and Louisiana.

The following are the average real estate tax rates, median house prices and median real estate taxes in 50 states and the District of Columbia.

Note: The states where popular cities are located are indicated in bold. It should be noted that the following is the average value of property tax by state. The same price of real estate, different cities and different school districts in the state, the way and tax rate of property tax collection may be different, but the difference will not be too big.

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Note: The data comes from the latest statistical report of WalletHub 20 16, which was compiled and published by Waijule.

3. Collection procedures

Paying property tax in America is very simple. Usually, the local government will mail a tax notice to every homeowner. The owner needs to send the property tax back to the address designated by the local government by cheque and tax receipt within the prescribed time limit. Some places can also pay online. Local governments have different regulations on the frequency of tax payment. For example, in Philadelphia, only once a year, the real estate appraisal firm will send the property tax form to the owner in June 5438+February every year, and the owner must pay it before March 3 1 of the following year. California property tax is paid twice, the first time is 1 1 10/month1; The second time was in February of the following year 1. In New Jersey, it is divided into four times a year. Taxpayers of American property tax are natural persons and legal persons who own real estate. Including residential owners and lessors, but excluding residential tenants.

4. Conditions for exemption

Local governments in the United States have stipulated some tax relief projects, mainly for self-occupied houses, by lowering the tax base or underestimating the value of real estate. In addition, there is another way to reduce the property tax in the United States, that is, when the property tax exceeds a certain upper limit, taxpayers can get the corresponding state personal income tax credit or cash compensation from the state government. In California, for example, taxpayers' main self-use houses can be exempted from the property tax of $7,000. This is of practical significance to us in China. And the veterans allowance. At present, 30 States in the United States provide a fixed amount of tax exemption for the evaluation of veterans' own residential properties.

5. Refuse to pay the fine

Penalty interest and penalty interest measures are taken for those who fail to pay taxes within the time limit. The longer the arrears, the higher the fine. When tax arrears and penalty interest fines reach a certain level, local governments can take lien and auction on the property that is in arrears with property tax. This is the origin of many auction houses.

Because the government property tax has the first mortgage, if the property owner defaults with many institutions, then the local government has the most right to obtain funds from the property auction for tax deduction. In California, for example, if the deadline is exceeded, the homeowner will be fined 65438+ 00% of the payable amount; Failure to pay the property tax for three years will lead to the confiscation and auction of the property by the local government.