When I first started helping clients navigate California real estate back in 2003, property tax payments were pretty straightforward—you got a bill in the mail, wrote a check, and sent it off to the county. Fast forward to today, and while the basic concept remains the same, we have more payment options, online systems, and potential complications to consider.
After guiding hundreds of new homeowners through this process over the past two decades, I’ve found that understanding how to properly set up your property tax payments is crucial to avoiding late fees, penalties, and those dreaded “delinquent” notices that no homeowner wants to receive.
Understanding California’s Property Tax System: The Basics
California’s property tax system is somewhat unique compared to other states, and it’s governed primarily by Proposition 13, which passed back in 1978—well before I got into real estate, but something every California homeowner should understand.
Here are the fundamental elements:
- Property taxes are generally 1% of your home’s assessed value (purchase price), plus additional local assessments and bonds
- Your assessed value can only increase by a maximum of 2% per year under Prop 13 (a significant benefit in our appreciating market)
- Taxes are paid in two installments annually
- The fiscal tax year runs from July 1 to June 30
This system creates a level of predictability that homeowners in many other states don’t enjoy. I remember helping a family relocate from Texas a few years ago—they were shocked to learn their property taxes wouldn’t jump dramatically each year as their home appreciated in value. That Prop 13 protection is one of the silver linings of our expensive California housing market!
When Are California Property Taxes Due?
California property taxes are due in two installments:
- First installment: Due November 1, delinquent after December 10
- Second installment: Due February 1, delinquent after April 10
I always tell my clients to circle these dates in red on their calendars. If payment is received even one day after the delinquent date, you’ll be hit with a 10% penalty. That’s not a small amount when you’re talking about thousands of dollars in property taxes!
A client of mine in Pasadena missed the December deadline by one day last year—literally one day—and ended up with a $700 penalty. The county tax collector wouldn’t budge on waiving it despite his perfect payment history. These deadlines are taken very seriously.
Who Collects Property Taxes in California?
Property taxes are collected by your county tax collector’s office. Each of California’s 58 counties has its own tax collector, though the basic processes are similar across counties.
For example:
- Los Angeles County has the Treasurer and Tax Collector
- Orange County has the Treasurer-Tax Collector
- San Diego County has the Treasurer-Tax Collector
- San Francisco has the Office of the Treasurer & Tax Collector
The specific name and website might vary, but you’ll want to find your county’s tax collector website to set up your payments.
Your Four Main Options for Paying Property Taxes in California
California homeowners typically have four options for handling their property tax payments:
Option 1: Pay Directly to the County
This is the most straightforward approach and gives you the most control. You’ll receive tax bills directly from the county and be responsible for making payments on time.
How to set it up:
- Wait to receive your first property tax bill (typically mailed in October)
- Create an online account on your county tax collector’s website
- Choose your preferred payment method (online, mail, in-person)
- Calendar the payment deadlines
Best for: Homeowners who prefer maximum control over their finances and don’t mind managing the biannual payments.
Between you and me, this is how Elena and I handle our property taxes for our home in Pasadena. We like having that direct control, and we’ve set calendar reminders for the month before each due date.
Option 2: Impound/Escrow Account Through Your Mortgage Lender
Many homeowners pay their property taxes through an impound account (also called an escrow account) managed by their mortgage lender.
How to set it up:
- Request an impound account when you obtain your mortgage
- If you didn’t set one up initially, contact your loan servicer to establish one
- Your lender will collect 1/12 of your estimated annual property taxes with each monthly mortgage payment
- The lender pays the county directly when taxes are due
Best for: First-time homebuyers, those who prefer to spread tax payments over 12 months, or homeowners who want to simplify their financial management.
I often recommend this option to my first-time homebuyers. It creates a forced savings plan for property taxes and eliminates the risk of missing payment deadlines.
Option 3: Installment Plans Through Your County
Some California counties offer installment plans beyond the standard two-payment system. For example, Los Angeles County offers the Installment Plan Option for defaulted property taxes.
How to set it up:
- Contact your county tax collector’s office
- Ask about available installment plans
- Complete required applications
- Set up automatic payments if available
Best for: Homeowners who are struggling to make their property tax payments and need additional flexibility.
Option 4: Third-Party Payment Services
Several third-party services allow you to make monthly payments toward your property taxes.
How to set it up:
- Research reputable property tax payment services
- Enroll in their program
- Make monthly payments to the service
- The service pays your county tax bill when due
Best for: Homeowners who want monthly payments but don’t have an impound account with their lender.
I had clients in Sherman Oaks who used a service like this after refinancing and removing their impound account. They liked the monthly payment approach but wanted to keep their loan separate.
Step-by-Step Guide to Setting Up Direct County Payments
Since paying directly to the county is the most common method for homeowners without impound accounts, let’s walk through this process in detail:
Step 1: Receive Your First Property Tax Bill
When you purchase a home in California, the title company typically notifies the county assessor of the ownership change. The county then sends property tax bills to your new address.
Important: If you don’t receive a tax bill by November 1st of your first year of ownership, don’t assume you don’t owe taxes! In California, you’re responsible for property taxes whether you receive a bill or not.
I had clients who bought a home in Eagle Rock and never received their first tax bill because of a clerical error. They assumed everything was fine until they got a delinquency notice with penalties. We managed to get the penalties waived since it was their first offense, but it was a stressful experience for them.
Step 2: Create an Online Account
Most California counties now offer online property tax management systems. For example:
- Los Angeles County: Property Tax Portal
- Orange County: Treasurer-Tax Collector ePayments
- San Diego County: sdttc.com
- San Francisco: sftreasurer.org
To create an account, you’ll typically need:
- Your Assessor’s Parcel Number (APN) from your tax bill or deed
- Your property address
- Personal identification information
Step 3: Choose Your Payment Method
California counties typically accept:
Electronic payments:
- E-checks (usually free)
- Credit cards (convenience fee of 2-3%)
- Debit cards (smaller flat fee)
Traditional methods:
- Checks by mail
- In-person payments at the tax collector’s office
- Drop boxes at county facilities
Automatic payments:
- Some counties offer automatic withdrawal options
Pro tip: E-checks are usually the most cost-effective electronic payment method. Credit card convenience fees can add significantly to your tax bill, especially in high-value counties like Los Angeles or San Francisco.
Step 4: Set Up Payment Reminders
Even with online accounts, most counties don’t send automatic reminders about upcoming due dates. Set up:
- Calendar alerts (30 days before, 10 days before, and 1 day before deadlines)
- Email reminders
- Phone alerts
Step 5: Make Your Payments
When making payments:
- Allow sufficient processing time (especially for mailed payments)
- Keep confirmation numbers for electronic payments
- If mailing, consider certified mail for proof of timely payment
- Save payment receipts for at least three years
Setting Up an Impound/Escrow Account for Property Taxes
If you prefer to have your mortgage servicer handle your property tax payments:
For New Mortgages:
- Indicate your preference for an impound account during the loan application process
- Review your Loan Estimate and Closing Disclosure to confirm the impound account setup
- At closing, you’ll typically pay a few months of property taxes upfront to fund the initial escrow account
For Existing Mortgages Without Impounds:
- Contact your mortgage servicer’s customer service
- Request to establish an impound account for property taxes (and possibly insurance)
- Be prepared to fund the account with several months of taxes upfront
- Your monthly mortgage payment will increase to include the tax portion
Important consideration: While impound accounts provide convenience, they also mean your mortgage servicer controls the timing of payments. Most servicers pay property taxes a month or more ahead of deadlines to avoid penalties, but I’ve occasionally seen servicers make late payments, resulting in penalties for the homeowner.
I remember helping a family in Glendale sort out a mess when their mortgage servicer failed to pay their property taxes on time despite having collected the funds. It took months to resolve, and they had to pay the penalties upfront while fighting with their servicer for reimbursement.
Special Considerations for New California Homeowners
Supplemental Tax Bills
Here’s something that catches many new California homeowners by surprise: supplemental tax bills.
When you purchase a property, the county reassesses its value based on your purchase price. If this value is higher than the previous assessment (which is common in our appreciating market), you’ll receive a supplemental tax bill covering the difference from the date of purchase to the end of the tax year.
These supplemental bills arrive separately from your regular tax bills, often 4-6 months after purchase, and they’re not typically covered by impound accounts unless you make specific arrangements.
I cannot tell you how many clients call me in a panic when they receive these bills, especially in high-value areas like the Westside or South Bay. I now proactively warn all my buyers about these supplemental bills and advise them to set aside funds accordingly.
Property Tax Reassessment Exclusions
California offers certain exclusions from reassessment that new homeowners should know about:
- Parent-Child Transfers: Under Proposition 19 (which modified the previous Prop 58), transfers between parents and children may qualify for exclusion from reassessment if certain conditions are met.
- Over-55 Transfers: Homeowners over 55 may be able to transfer their tax base to a new home under specific circumstances.
- Disaster Relief: Properties damaged or destroyed by natural disasters may qualify for temporary assessment reduction.
If you think you might qualify for any of these exclusions, contact your county assessor’s office promptly—there are strict deadlines for filing these claims.
Common Property Tax Payment Mistakes to Avoid
After helping hundreds of California homeowners navigate property taxes, here are the most common mistakes I see:
Mistake #1: Assuming your mortgage company pays all property tax bills
Even with an impound account, supplemental bills typically go directly to the homeowner and must be paid separately.
Mistake #2: Ignoring property tax bills after refinancing
When you refinance, your old lender might refund your impound account balance, but your new lender might not immediately establish a new one. This can create confusion about who’s responsible for the next tax payment.
Mistake #3: Not updating your mailing address with the tax collector
If you move or use a different mailing address, you must update this information with the county tax collector directly. Your mortgage company updating their records is not sufficient.
Mistake #4: Waiting until the deadline to pay
Online systems can crash, mail can be delayed, and other issues can arise. I recommend paying at least a week before the delinquent date.
Mistake #5: Assuming property tax amounts stay the same each year
Even with Prop 13’s 2% cap on assessed value increases, your total tax bill can increase more significantly due to newly approved local bonds, special assessments, or parcel taxes.
Regional Differences Across California Counties
While the basic property tax structure is consistent statewide, there are notable county-specific differences:
Los Angeles County:
- Offers an online lookup system where you can check your property tax status without creating an account
- Has multiple in-person payment locations across the vast county
- Provides a mobile app for property tax payments
San Francisco County:
- Has higher than average special assessments and parcel taxes
- Offers more robust email reminder systems
- Provides detailed online property tax history
Orange County:
- Has one of the more user-friendly online payment systems
- Offers text message reminders for upcoming due dates
- Provides detailed breakdowns of where tax dollars go
Rural Counties:
- May have fewer electronic payment options
- Often provide more personalized customer service
- May have lower supplemental assessment processing times
I’ve helped clients purchase homes throughout Southern California, and I’ve noticed these regional differences can significantly impact the property tax experience. My clients in Orange County generally report the smoothest experience with their tax collector’s systems, while those in some of the smaller counties appreciate the personalized service when questions arise.
My Personal Advice After Two Decades in California Real Estate
After helping countless homeowners navigate California property taxes since 2003, here’s what I tell all my clients:
- Budget for property taxes separately even if you have an impound account. This creates a safety net for supplemental bills or impound shortages.
- Create a dedicated property tax folder (physical or digital) where you store all tax bills, payment confirmations, and related correspondence.
- Review your tax bill annually to ensure you’re not being charged for special assessments that might have expired or don’t apply to your property.
- Consider paying the full year’s taxes in December if it makes sense for your tax situation (consult your tax advisor about this strategy).
- If you’re struggling to pay, contact the tax collector immediately. Some counties offer hardship programs or payment plans, but you must be proactive.
I remember working with a retired teacher who bought a modest home in Altadena several years ago. She was on a fixed income and found property taxes challenging. We helped her apply for property tax postponement through the State Controller’s Office, which allowed her to defer payments until she sold the home or passed away. Programs like this exist, but you need to seek them out.
Between you and me, I think California’s property tax system is actually one of the more homeowner-friendly aspects of our state’s housing landscape. Yes, the initial tax bills can be shocking in high-value areas, but the predictability provided by Prop 13 creates long-term stability that homeowners in many other states don’t enjoy.
Elena and I have seen our home’s value nearly double since we bought in Pasadena, but our property tax increases have been manageable because of those Prop 13 protections. It’s one of the reasons long-term homeownership in California can be financially advantageous despite our high entry costs.
Setting up your property tax payments correctly from the beginning establishes a solid foundation for your California homeownership journey. Take the time to understand your options, choose the system that works best for your financial style, and then set reliable reminders to ensure you never miss those critical payment deadlines.
