Taxes in California (Sacramento, Lincoln, Penn Valley: sales, real estate, how much)

[bmhooks]

We have decided to relocate to Sacramento, CA from Atlanta, GA and I would like to know the real deal about tax costs in California. California is supposed to have high sales tax, income tax, etc. I would like to know how high the taxes are in California.

Our real estate agent told us the property taxes were 1.25% of the total purchase price. I know the sales tax is 7.5%. The income tax is also high (we will be in the 10% range in addition to the 30%+ federal tax range); we are only paying 6% in GA. There is also a gasoline tax as well which I noticed when I was driving there but I don't know how much that is.

I would like some input about how much people are paying for property taxes in California. Is 1.25% correct?

Thanks
Bertina Hooks

[Adamson865]

7.5% is the state sales tax. Localities add on top of that. Inside Sacramento proper you'll pay 8.5%, but if you shop outside the city limits it'll be 8%.

[marcopolo666]

'Approximately 1.25%' of the assessed value is correct (for prop taxes). The *state* portion is limited to 1% of value, and increases of the assessed value are limited to 2% for each year since it last sold.

There may be county, city, school or library or lighting or water or ... other ... districts that add on top of the 1%, so the full amount depends *exactly* on what the voters where silly enough to vote for over the past 30 years or so. So *where* you live will impact the percentage you pay (for example: some school districts get the voters to approve bonds, which are paid back over 20 or 30 years, and if you live inside the district you repay the bonds and if you live outside the district, even in the same city, you may not).

Similarly, the sales tax can vary by City or County. I think that the state portion is 7.5%. Counties that have BART (Sacramento doesn't) pay an extra little bit, and sometimes cities add on .25% for X years for some big project.

[NinaN]

For the most part, the extra taxes in the form of bonds are called Mello Roos. If you purchase a home, you should ask about that tax. They can run from almost nothing to thousands of dollars per year so it's important to know. Many of the newer developments (last 10-15 years or so) have Mello Roos. Some have perpetual bonds, some are 20 or 30 years so that's another thing to research.

The biggest thing you will notice is the difference in the price of your home. We moved from Texas so there was major sticker shock, even back in 2008 when market was down, but it is oh so worth it to us to be here.

[CaliforniaGal1]

Here's a handy calculator. Type in the address

CA City & County Sales & Use Tax Rates - Board of Equalization

[2sleepy]

Our realtor told us to figure 1.25% for property tax, but assessments can drive it way over that. Several months ago we considered Penn Valley but they have some really high assessments, the same seems to be true for many areas in Lincoln

[Curmudgeon]

Originally Posted by bmhooks

We have decided to relocate to Sacramento, CA from Atlanta, GA and I would like to know the real deal about tax costs in California. California is supposed to have high sales tax, income tax, etc. I would like to know how high the taxes are in California.

Our real estate agent told us the property taxes were 1.25% of the total purchase price. I know the sales tax is 7.5%. The income tax is also high (we will be in the 10% range in addition to the 30%+ federal tax range); we are only paying 6% in GA. There is also a gasoline tax as well which I noticed when I was driving there but I don't know how much that is.

I would like some input about how much people are paying for property taxes in California. Is 1.25% correct?

Thanks
Bertina Hooks

This might help a bit:

Taxes by State: Alabama to Iowa