How much you pay in property taxes varies significantly and can be influenced based on the home’s worth and location, among other factors. California properties are among the most desirable, which can drive the median value of homes up considerably compared to other states. For homeowners, this is often a dream come true, and a big part of why people choose to live and invest here in the sunshine state, but it is well known that California taxes are among the highest in the nation with Orange County as one of the most densely populated counties in the state.
OC has one of the highest median property taxes in the United States, and is ranked 119th of the 3143 counties in order of median property taxes. The average yearly property tax paid by Orange County residents amounts to about 3.56% of their yearly income.
What is the Orange County Property Tax?
Proceeds from the Orange County Personal Property Tax are used locally to fund school districts, public transport, infrastructure, and other municipal government projects. Property tax income is almost always used for local projects and services, and does not go to the federal or state budget.
Unlike other taxes which are restricted to an individual, the Orange County Property Tax is levied directly on the property. Unpaid property tax can lead to a property tax lien, which remains attached to the property's title and is the responsibility of the current owner of the property. Tax liens are not affected by transferring or selling the property, or even filing for bankruptcy. Property tax delinquency can result in additional fees and interest, which are also attached to the property title.
Property taxes in Southern California vary depending on the county in which you live. For Orange County, Property taxes are a substantial revenue source and it may differ depending on whether your property is secured or unsecured. Secured property generally refers to any property that can be used as collateral, like land and mines. In other words, if a homeowner or business owner fails to pay his or her secured property taxes, they can be paid when the property is sold. That’s not the case with unsecured property (like office equipment, boats and airplanes) since it isn’t considered real estate.
- Secured Taxes
The first type of tax listed on your bill is the “secured tax.” This is the general property tax that applies to all properties in the county.
- Unsecured Taxes
The second type of tax listed on your bill is the “unsecured tax.” This tax applies to property that is not physically attached to the land, such as mobile homes and boats.
- Supplemental Taxes
The third type of tax listed on your bill is the “supplemental tax.” This tax is assessed on properties that have increased in value since the last assessment.
Things You as a Homeowner/Homebuyer Need to Know
If you own property in Orange County, it’s essential to be aware of its property tax laws. The Orange County Property Appraiser’s Office is responsible for appraising all real and personal property within the county and calculating the annual property tax rate.
The tax rate is set by the Orange County Board of Commissioners and is applied to the appraised value of your property. The money you owe is based on your property’s value and the tax rate that is set each year. Tax rates can vary depending on the type of property you own, and they can change from year to year. In addition, if you have improvements to your property, such as a new roof or a new deck, those improvements will also be subject to taxation.
The best way to stay up-to-date on Orange County’s property tax laws is to contact the Property Appraiser’s Office directly or visit their website. By staying informed, you can ensure that you are paying your fair share of taxes and avoid any penalties or interest charges.
How to Calculate Property Taxes for Your Property
In California, property taxes are calculated based on the value of your property. The county assessor determines the value of your property, and it is typically updated every two years. To calculate property taxes, you will need to know three things:
- The appraised value of your property
- The tax rate for the year
- Any and all exemptions that have been applied to your property
The Orange County Property Appraiser’s Office sets the appraised value of your property. The tax rate is set by the Orange County Board of Commissioners. And any exemptions are applied by the Orange County Treasurer-Tax Collector’s office.
To calculate your taxes, simply multiply your property’s appraised value by the tax rate. Then, subtract any exemptions that have been applied. The result is your total property tax liability for the year. In addition, if you have improvements to your property, such as a new roof or a new deck, those improvements will also be subject to taxation. You can get help calculating your taxes from the Orange County Treasurer-Tax Collector’s office. As a property owner, you have the right to appeal the property tax amount you are charged and request a reassessment if you believe that the value determined by the Orange County Tax Assessor's office is incorrect.
- Orange County Property Tax Calculator
The Orange County Treasurer-Tax Collector’s office has a property tax eguides on its website. This same office will send your taxes to you by mail. If you want to get an idea of what you’ll be paying, take the total value of all of your property and multiply it by this year’s tax percentage.
When Are Orange County Property Taxes Due
Property taxes in Orange County are due on November 1st of each year. You will be charged a late fee if you do not pay your taxes by the due date. If you cannot pay your property taxes in full, you can arrange to make payments over a period of time. Contact the Orange County Treasurer-Tax Collector’s office. They will be able to help you set up a payment plan.
How to Pay Orange County Taxes
You can pay your taxes online, by mail, or in person. If you choose to pay online, you will need to have your bill handy. You will also need to set up an account with the county’s payment portal.
If you choose to pay by mail, you will need to make your check out to the “Orange County Treasurer-Tax Collector.” The address has already been posted above.
The Orange County tax collector prepares tax bills for secured properties and mails them out between September and October each year. You can also find your property tax bill online by visiting ocgov.com/octaxbil
Who Qualifies for Exemptions in Orange County?
There are a few of different exemptions that can be applied to your property taxes in Orange County. Some of the most common exemptions include:
- Senior citizen exemption – If you are age 62 or older, you may be eligible for a reduction in your property taxes
- Disabled veteran exemption – Disabled veterans may qualify for a reduction in their property taxes
- Homeowner’s exemption – If you own and occupy your home as your primary residence, you may be eligible for a reduction in your property taxes
To see if you qualify for an exemption, you will need to contact the Orange County Treasurer-Tax Collector’s office. They will be able to help you determine if you are eligible and how to apply for an exemption.
Why Do You Have To Pay Your Taxes?
Taxes are one of the most controversial topics in politics. Some people believe taxes are necessary to fund vital public services, while others argue that taxes are an unfair burden on taxpayers.
There is no easy answer to the question of whether or not taxes are necessary, but there are some compelling reasons why we may need to pay taxes. First, taxes help to fund essential government programs like education and infrastructure. Without tax revenue, these programs would be underfunded and unable to provide the same level of service.
Second, taxes help create a more equitable society by ensuring everyone contributes their fair share. This is especially important in a democracy, where everyone should have an equal say in how their government is run. Finally, taxes help ensure that businesses and individuals pay their fair share of government costs.
This helps prevent businesses and wealthy individuals from unduly benefiting from public services while contributing nothing to the costs of those services. While there is no easy answer to the question of whether or not taxes are necessary, there are some good reasons why we may need to pay them.
If you have questions about the process of buying a home, or how understanding property taxes affect your overall home buying journey, send us a 📥 DM or give us a 📞 call today!
RESOURCES: https://www.taxcrisisinstitute.com/how-much-are-property-taxes-in-orange-county-california/; http://www.tax-rates.org/california/orange_county_property_tax; https://www.thebalancemoney.com/california-state-taxes-amongst-the-highest-in-the-nation-3193244;