You’ve decided to sell your home. You know you need to do a little cleaning, maybe a few small repairs and then put it on the market. Easy as 1-2-3.
Not so fast. Unfortunately, listing your home can come with some unexpected costs for you—the seller. Closing fees, failed inspections, and even property taxes that you thought you’d already paid can creep in and make selling your home a pricey affair.
The San Bernardino real estate market has been booming around the country, and some San Bernardino neighborhoods have enjoyed a hefty increase in property values. But with property comes property taxes.
This guide will walk you through everything you need to know about Southern California’s San Bernardino County property tax rates so that you can make an informed decision about the best (and most cost-effective) way to sell your home.
Real Estate Taxes in California
Some states make it very easy to calculate your property taxes. California, however, has some nuances that muddy up the tax calculation process. Some key points you need to know include:1
- Prop. 13 – In 1978, California passed Proposition 13. Prop. 13 limits the California property tax rate to 1% of the assessed property’s value. In addition, property taxes may include the amount determined to be necessary to fund voter-approved debt. The increase in assessed value of your property is also limited to 2% per year as long as the home doesn’t change ownership.
- Prop. 19 – In 2021, new rules took effect with Proposition 19.2 The intent of prop. 19 is to protect seniors and make it more affordable for those over 55 to sell their homes and move elsewhere in the state. It allows those eligible to carry over the same property tax basis at their new property, provided the new home is of equal or lesser value.
Both of these propositions are intended to protect homeowners from inflated tax bills. Prop. 19, in particular, offers eligible homeowners more flexibility to sell their homes and move to a different part of the state without a hike in property taxes.
Special Circumstances That May Impact Tax Rates
It’s no secret that California residents have to worry about natural disasters destroying their homes more frequently than people who live in many other states. Because of this, California allows people whose homes have sustained damage due to wildfires or other natural disasters to receive the same property tax basis transfer outlined for seniors in prop. 19.
Paying Property Taxes in San Bernardino County
The San Bernardino County property tax rate is the same as the rest of the state of California—1% of the assessed property’s value.3 However, depending on the city within San Bernardino County in which you live, you may pay more in other fees for schools, water, and your city’s tax.
As of early 2022, the average effective property tax rate after assessed valuations and property owner exemptions in San Bernardino was 0.81%. Let’s take a look at how the math breaks down:
- Your home has an assessed valuation of $345,000
- The effective property tax rate of 0.81% is applied
- You’d pay $2795 in property taxes
This math is just an example that doesn’t reflect the exact tax rate for all San Bernardino homeowners.
How Does Selling Your Home Impact the Tax Rate?
The San Bernardino property tax rate falls pretty close to the middle among counties in California. This means the tax rate itself won’t keep most buyers from wanting to purchase your home. However, if you’ve owned your home for a long time, there might be a problem.
You see, Prop. 13 has been in place since 1978. This means your property taxes have been limited by the 2% cap on assessed value for taxation each year. When you sell your home, a new assessment immediately takes place. The new owners have to pay taxes based on the new assessment that has been conducted without the 2% restriction. This means:
- The new owners are going to have a significantly higher tax bill than you did
- This may discourage buyers from wanting to purchase your home
- Your home might take longer to sell
If it takes longer for your home to sell, you might have to put your own plans on hold while you wait. No one wants to have to wait, especially in a competitive market like the one we have today.
FlipSplit: Your Top Choice for a Seamless Real Estate Transaction
Selling a home is typically more difficult (and costly) than we first anticipated. In Southern California, county and state laws on property tax can make home sales even more complex. However, there’s a way to make the home selling process truly simple.
At FlipSplit, we buy houses for fair market value. Then we add value-enhancing upgrades and resell your home. If our upgrades earn us more than the original sale value, we split the profits with you. You get to skip the high real estate agent commissions and stressful back and forth negotiations with the buyer.
Contact us today to see if FlipSplit is right for you.
Note: If you are a property owner looking for specific tax information regarding your property tax bill or other property records about a place in San Bernardino County, contact the San Bernardino County Tax Assessor’s Office.
- Tax-Rates. California Property Taxes. http://www.tax-rates.org/california/property-tax
- Board of Equalization. Proposition 19. https://www.boe.ca.gov/prop19/
- Tax-Rates. San Bernardino County Property Taxes. http://www.tax-rates.org/california/san_bernardino_county_property_tax