Todd Goforth here, East Bay Realtor. Are you a new homeowner in Concord, Walnut Creek, Danville, Pleasant Hill, Clayton, Martinez, Alamo? As you embark on this exciting journey, one important aspect you’ll need to navigate is property taxes. Property taxes play a significant role in funding local services like schools, roads, and public safety. In this post, I’ll break down the process of paying property taxes in a clear and concise manner.
Step 1: Taxes Become a Lien
When it comes to property taxes, the process starts with something called a “lien.” Think of it as a notice that’s put on your property to indicate that you owe taxes. This lien is established on January 1st of the year the taxes apply to. For instance, if you’re dealing with taxes for the fiscal year 2022-2023 the lien takes effect on January 1, 2022. However, don’t worry, you’re not required to pay it off right away.
Step 2: Taxes are Finalized
The next step involves finalizing the exact amount you owe in property taxes. This is akin to receiving your bill after dining at a restaurant. Local authorities calculate the precise amount you need to pay based on your property’s assessed value and applicable tax rates.
Step 3: Tax Bills are Issued
Picture this as receiving an invoice in the mail. On or before November 1st, you’ll receive your property tax bill. This bill will outline the specific amount you’re obligated to pay and provide important information regarding due dates and payment options.
Step 4: Taxes are Due and Payable
Now, it’s time to settle your property taxes. You have two options for payment: in two installments or all at once. The first installment is due on November 1st, while the second one is due on February 1st. If it’s more convenient for you, you can also choose to pay both installments together on either of these dates. This flexibility allows you to manage your payments according to your financial situation. Remember, if you set up an impound (or ‘escrow’) account, you’re paying part of these taxes monthly, and the full payment will be made from this account, taking the obligation off of you to come up with the full amount twice a year.
Step 5: Taxes are Delinquent
Just like missing a deadline, there are consequences if you fail to pay your property taxes on time. If your payment is not received by the due date, your taxes are considered “delinquent.” For the first installment, the delinquency date is after December 10th. For the second installment, it’s after April 10th. To avoid potential penalties and interest, it’s crucial to make your payments on or before these dates.
Property taxes are tax deductible, up to a certain amount. Check with your CPA for the latest on your area form ore on this.
Feel free to reach out with any questions on property taxes!
Todd Goforth, Realtor in Concord, Walnut Creek, Danville areas
Concord, CA address – 2001 Salvio St #25, Concord CA 94520
Walnut Creek, CA address – 201 N Civic Dr #130, Walnut Creek CA 94596
Danville, CA address – 601 Sycamore Valley Rd W, Danville CA 94526