Understanding property taxes in California can feel like navigating a maze, but with the right knowledge, you can help your clients stay ahead of deadlines, avoid penalties, and maximize exemptions. Whether you’re a homeowner, real estate agent, or lender, this breakdown of the Fidelity National Title Property Tax Guide will help you make sense of tax schedules, due dates, impound reserves, and more.
Key California Property Tax Deadlines
💡 Mark Your Calendar! Property taxes follow a predictable cycle:
- January 1st: Lien date – This is the date when the property tax assessment is set for the year.
- Last Week of October: Tax bills are mailed out to property owners.
- November 1st: 1st installment is due.
- December 10th: 1st installment becomes delinquent if not paid.
- January 1 – June 30: 2nd installment covers this period.
- April 10th: 2nd installment becomes delinquent if not paid.
- July 1st: The beginning of the new fiscal tax year.
👉 Missed a deadline? Penalties and interest may apply, and properties with five years of delinquency may even be auctioned off!
Property Tax Exemptions – Homeowners, Don’t Miss Out!
If you own and occupy your home as your primary residence, you may qualify for a $7,000 property tax exemption on your assessed value. To claim this:
✅ File the BOE-266 Claim for Homeowners’ Property Tax Exemption with your county assessor.
✅ Deadline: Apply by February 15th to receive the full exemption for that tax year.
✅ More info: California Property Tax Exemption
Understanding Property Tax Proration
When buying or selling a home, property taxes are prorated between the buyer and seller. Here’s how it works:
🔹 Seller’s Responsibility: Pays for the portion of taxes covering their ownership period.
🔹 Buyer’s Responsibility: Pays for taxes starting from their purchase date.
🔹 Escrow Adjustments: Credit or charge adjustments are made depending on the closing date.
💡 Example: If you close in September, the seller may credit the buyer two months of taxes since the next tax installment isn’t due until November 1st.
Tax Impound Reserve Schedule (For Loans with Impounds)
Lenders require property tax impounds on certain loans to ensure taxes are paid on time. Depending on when you close, you may need to prepay property taxes into escrow.
📅 For Example:
- If you close in March, your first tax payment is due in May, and lenders typically require two months of taxes in escrow.
- If you close in November, your first payment is due in January, and the lender may require four months of taxes in escrow.
🔍 These estimates vary based on lender requirements, so always verify before closing!
Why This Matters for Realtors & Lenders
🏡 Realtors – Guide your clients confidently through tax questions during transactions.
🏦 Lenders – Educate buyers on impound reserves and how taxes affect mortgage payments.
📑 Escrow & Title Pros – Ensure proration and tax impound calculations are accurate for smooth closings.
Stay Informed with Ryan J Orr & Team Title Guy!
Real estate pros—don’t get caught off guard when clients ask about property taxes! Stay up to date with market insights, title tips, and transaction strategies by following @ryanjorr on Instagram.
📲 Got questions? Contact:
📌 Ryan J. Orr, VP – Fidelity National Title
📞 (909) 767-0718
📩 Ryan.Orr@fnf.com
📌 Victoria Rebello, Account Manager
📞 (951) 520-5865
📩 Victoria.Rebello@fnf.com
