Property tax is a major cost for San Francisco homeowners and buyers. This guide explains how property taxes work, including rates, calculations, payment deadlines, and ways to save. With up-to-date information for 2025, it’s designed to help you plan and budget effectively.
What is Property Tax?
Property tax funds local services like schools, police, fire departments, libraries, and roads. In California, Proposition 13 (passed in 1978) limits tax increases, making them more predictable. However, taxes vary based on when you bought your property and its assessed value.
How is Property Tax Calculated in San Francisco?
Your property tax bill is calculated by multiplying your property’s assessed value by the tax rate. Here’s how it works:
Assessed Value
- Set by the San Francisco Assessor-Recorder’s Office.
- For new buyers, it’s usually the purchase price.
- Each year, the value can rise by up to 2% or the inflation rate (whichever is lower), per Proposition 13.
- Long-term owners often have lower assessed values due to these limits, especially in high-value areas like San Francisco.
Tax Rate
- For 2024-2025 (July 1, 2024, to June 30, 2025), the rate is 1.17143563%, per the San Francisco Treasurer & Tax Collector.
- This includes:
- 1% base rate (Proposition 13).
- Extra rates for voter-approved bonds (e.g., schools, transit).
- Rates change yearly based on city needs. The 2025-2026 rate isn’t out yet but should be similar.
Exemptions
- Homeowner’s Exemption: Cuts $7,000 off your assessed value, saving about $82 yearly (at 2024-2025 rates). Apply once; it auto-renews.
- Senior, Veteran, or Disabled Exemptions: May offer more savings. Check with the Assessor-Recorder’s Office.
- You must apply for exemptions; they’re not automatic.
Sample Calculation
| Property Value | Assessed Value (After $7,000 Exemption) | Tax Rate (2024-2025) | Annual Tax |
|---|---|---|---|
| $1,000,000 | $993,000 | 1.17143563% | $11,632 |
Note: This is an estimate. Extra fees or supplemental taxes may apply.
When and How to Pay Property Taxes
Taxes are paid in two installments:
- First: Due November 1, delinquent after December 10.
- Second: Due February 1, delinquent after April 10.
Payment Options
- Online: Use the Treasurer-Tax Collector’s website.
- Mail: Send to:
Office of the Treasurer & Tax Collector
P.O. Box 7426
San Francisco, CA 94120-7426Postmark by the due date to avoid penalties.
- In Person: Visit the Treasurer-Tax Collector’s office.
Late Payment Penalties
- After delinquency dates, a 10% penalty plus a $55 fee applies.
- Unpaid taxes after June 10 become tax-defaulted, adding 1.5% monthly penalties.
- Long-term non-payment risks a tax sale, where your property is sold to cover taxes.
Supplemental Property Taxes
A supplemental tax bill may come after buying a home or making major improvements. It covers the difference between the old and new assessed values for the rest of the fiscal year. Key points:
- Bills are prorated based on the date of ownership change or construction.
- They’re separate from regular taxes and may not be paid via escrow.
- Estimate yours with the Supplemental Tax Calculator.
Answers to Common Questions
How Often Do Taxes Increase?
Taxes rise up to 2% yearly or by inflation (whichever is lower). Big jumps happen only after ownership changes or improvements.
Can I Appeal My Assessment?
Yes, file with the Assessment Appeals Board by September 15. Show evidence like comparable sales to prove your property’s value is lower.
What If I Miss a Payment?
You’ll face penalties and interest. Long-term non-payment could lead to a tax sale. Request a penalty waiver online if you have a valid reason.
Are There Extra Taxes?
Yes, voter-approved fees may apply, like:
- Mello-Roos Bonds: ~$39.04 yearly for single-family homes in some areas.
- Bonds for schools or transit.
How Do San Francisco Taxes Compare?
- California’s average effective rate is 0.76%.
- San Francisco’s ~1.17% is higher, due to costly properties and local needs.
- It’s lower than New Jersey (~2.49%) but higher than Hawaii (~0.28%).
How to Lower Your Property Tax Bill
- Claim Exemptions: Get the Homeowner’s Exemption and check for senior or veteran savings.
- Check Your Assessment: Look for errors in your annual notice (e.g., wrong square footage).
- Appeal High Assessments: File by September 15 with evidence.
- Review Your Bill: Spot unexpected fees or mistakes.
Why Property Taxes Matter
Taxes fund San Francisco’s services, including:
- Schools and colleges
- Police and fire services
- Parks and libraries
- Roads and transit
- Health programs
In 2023-2024, property taxes raised ~$4 billion, with 64% for the city, 34% for schools, and 2% for transit.
Past Tax Rates in San Francisco
| Year | Rate |
|---|---|
| 2005-2006 | 1.1400% |
| 2010-2011 | 1.1640% |
| 2015-2016 | 1.1826% |
| 2020-2021 | 1.19846368% |
| 2024-2025 | 1.17143563% |
Related UrbanTaken.com posts:
- How Tax Policies Affect the Real Estate Market
- Why Are Houses So Expensive in San Francisco?
- How to Afford a House in San Francisco
- Tax Benefits of Owning a Home
Conclusion
San Francisco property taxes can seem complex, but understanding rates, deadlines, and exemptions helps you manage costs. Claim savings, check assessments, and use official resources like the Assessor-Recorder’s Office or Treasurer-Tax Collector. Your taxes support schools, safety, and services that keep San Francisco thriving.