Sacramento Property Tax Basics for Buyers

Buying a home in Sacramento comes with a new line item in your budget: property taxes. If you have heard “it’s just 1 percent,” you are only hearing part of the story. You deserve a clear, stress‑free way to plan for taxes so there are no surprises after closing. In this guide, you will learn how Sacramento property taxes are calculated, what supplemental bills are, when payments are due, and how lender escrow works. Let’s dive in.

How Sacramento property taxes work

Prop 13 basics

California’s Proposition 13 sets the foundation for how your taxes are calculated. The base tax is limited to 1 percent of your assessed value. After that base year is set, assessed value increases are generally capped at a maximum of 2 percent per year unless there is a reassessment event such as a sale or qualifying new construction.

What changes at purchase

When you buy, a change of ownership typically triggers reassessment. In practice, the Sacramento County Assessor will usually set your new assessed value close to your purchase price. Proposition 19 also changed some transfer rules in 2021, affecting which inter‑family transfers avoid reassessment and how certain owners can transfer a base‑year value. If you are buying through a family transfer or after new construction, confirm how reassessment applies to you.

Beyond the 1 percent: local add‑ons

Your total bill is more than the 1 percent base. Voter‑approved bonds, parcel taxes, and special district charges are added on as separate line items. Some neighborhoods also sit inside Community Facilities Districts known as Mello‑Roos, which fund infrastructure and services. These charges vary by parcel, so two similar homes in different parts of Sacramento County can have very different tax totals.

Key takeaway: Do not assume total tax equals 1 percent of the purchase price. Always verify parcel‑level assessments and special district charges.

What to expect after you buy

Supplemental tax bills explained

Because a sale typically triggers reassessment, Sacramento County issues a supplemental assessment that reflects the difference between your new assessed value and the prior value, prorated for the portion of the fiscal year after your purchase date. The Treasurer‑Tax Collector sends this as one or more supplemental tax bills separate from the regular annual bill.

A supplemental bill may arrive weeks or months after you close. It is common to receive one or two supplemental bills in the first year. If multiple reassessment events occur in the same year, you could see more than one supplemental bill.

Timing and who pays

At closing, taxes are usually prorated so the seller pays up to the day of closing and you take responsibility after that date. The supplemental bill is addressed to the current owner, which means you, and it covers your prorated portion of the reassessment difference. Title or escrow can help you understand what to expect and how to read the county notices.

When tax bills are due

Regular secured bill

In Sacramento County, the secured annual property tax bill is mailed in October for the fiscal year. Installment deadlines follow California’s standard schedule:

• First installment due November 1 and delinquent after December 10.
• Second installment due February 1 and delinquent after April 10.

Late payments can trigger penalties and other collection actions. If you use lender escrow, confirm your lender will pay the installments on time.

Supplemental bill deadlines

Supplemental bills have their own due dates printed on the notice. These are often due within a set number of days of mailing and can carry penalties if unpaid. Read every county notice you receive and calendar the due dates.

Avoid penalties

• Set reminders a week before each deadline.
• If you pay directly, confirm delivery and keep receipts.
• If you escrow, check your lender’s online portal to verify the bill was paid.

How lender impounds (escrow) work

What gets escrowed

Many lenders require an escrow account for property taxes and homeowners insurance. You make one monthly payment that includes your loan’s principal and interest plus 1/12 of your annual tax and 1/12 of your insurance. The lender then pays taxes and insurance when due.

Initial deposit and cushions

At closing, your lender usually collects an initial escrow deposit so the account has enough to pay upcoming bills. Federal rules under RESPA limit the cushion a lender can hold, and many lenders keep a cushion of 1 to 2 months of escrowed payments in practice. Your initial deposit can feel large because it includes this cushion plus enough funds to cover the next due installment.

Who pays supplemental bills

Lenders handle supplemental bills differently. Some require you to pay the supplemental bill directly if it arrives soon after closing. Others may estimate and collect funds for a potential supplemental bill during closing. Ask your lender and escrow officer how supplemental bills will be handled and get the answer in writing.

Budgeting for your first year

Use this simple framework to estimate and plan:

1. Get the current or prior year tax bill from the seller. Note assessed value, total annual tax, and all itemized assessments. Keep the APN handy.
2. Confirm if your purchase will trigger reassessment. Most traditional sales do.
3. Estimate your new assessed value. The purchase price is a practical proxy.
4. Calculate your estimated annual tax:
   • Estimated annual tax = (Estimated assessed value × 1%) + estimated local assessments and any Mello‑Roos.
5. Estimate your monthly escrow for taxes: divide the annual estimate by 12. Add your insurance estimate if escrowed.
6. Reserve for a supplemental bill in the first year, especially if the prior assessed value was much lower than your purchase price.

Illustrative example

This is an example to show the math. Your actual numbers will vary by parcel.

• Purchase price: $600,000 (assume reassessed to this amount)
• Base 1% tax: $600,000 × 1% = $6,000
• Local bonds/parcel taxes/CFD: assume $800 (example only)
• Estimated annual property tax: $6,000 + $800 = $6,800
• Estimated monthly escrow for taxes: $6,800 ÷ 12 = $567
• If your lender requires a 2‑month cushion, your initial escrow deposit for taxes might include about $1,134 (2 × $567), plus prorations for the next due installment.
• Supplemental bill example: if the prior assessed value was $300,000, the reassessment difference is $300,000. For a purchase closing on October 1, the supplemental bill might cover about 9 months of that difference: $300,000 × 1% = $3,000 × 9/12 = $2,250, plus applicable local assessments.

How to verify a property’s taxes

What to request from the seller and escrow

• The most recent secured property tax bill with itemized assessments.
• Any supplemental bills in the last 12 months.
• The preliminary title report and any documents showing CFD or Mello‑Roos obligations.
• Disclosures about special assessments or pending bonds.

Use county tools for parcel‑specific figures

• Sacramento County Assessor: search by APN or address to see assessed value and supplemental assessment information.
• Sacramento County Treasurer‑Tax Collector: use the online bill lookup to view itemized charges and payment status, and review due dates and penalty rules.
• Sacramento County map or GIS portal: verify special district boundaries, including CFD or Mello‑Roos zones.
• California State Board of Equalization (BOE): review statewide definitions and Prop 13/Prop 19 explanations.

If you are unsure where to start, ask your escrow officer or title company to provide the APN and links to the county’s property search and tax bill pages. Always rely on county records for the most current figures.

Quick buyer checklist

• Request the seller’s current tax bill and any recent supplemental bills.
• Ask escrow or title for the APN and a summary of special districts affecting the parcel.
• Confirm with your lender whether taxes and insurance will be escrowed.
• Get your initial escrow deposit and monthly escrow estimates in writing.
• Ask how supplemental bills will be handled and whether you will pay them directly.
• Check for Mello‑Roos or other fixed assessments that continue for many years.
• Verify tax proration at closing so each party pays their fair share to the closing date.
• Keep all county notices after closing. Calendar each due date immediately.

Buying in Sacramento should feel exciting, not confusing. With a clear plan for taxes, you can set your budget, avoid penalties, and enjoy your new home with confidence. If you want help estimating parcel‑specific taxes or coordinating with your lender and escrow, reach out to our local team at Portfolio Real Estate for guidance tailored to your purchase.

FAQs

How are property taxes calculated in Sacramento?

• Your annual bill equals the assessed value × 1 percent plus voter‑approved bonds, parcel taxes, and any special district charges such as Mello‑Roos.

What is a supplemental property tax bill after home purchase?

• A supplemental bill reflects the difference between your new assessed value and the prior value, prorated from your purchase date, and it arrives separately from the regular bill.

When are Sacramento property taxes due each year?

• The regular first installment is due November 1 and delinquent after December 10; the second is due February 1 and delinquent after April 10. Supplemental bills have their own due dates.

How do lender escrow accounts handle property taxes?

• Your monthly payment includes 1/12 of annual taxes and insurance, the lender pays bills when due, and an initial deposit with a 1–2 month cushion is common under RESPA limits.

How can I check if a home has Mello‑Roos or special assessments?

• Review the itemized county tax bill, request disclosures and the preliminary title report, and use Sacramento County’s parcel search and GIS resources to verify district boundaries.