How Do Property Taxes Work?

🏠📝✅ Exam prep and crash course - https://www.usrealtytraining.com/exam... Property taxes for California can get tricky for new homeowners. What are property taxes based on anyway? This video is everything you need to know about property taxes in California. Just because your client is buying their house doesn't mean they will never have to pay money for it again. In fact, they will have to pay an annual amount of money for owning the property. This is called property tax. Property taxes are based on the value of the property your homebuyer just bought. The property taxes are a small percentage of the value, so the higher the property value, the higher the property tax. But, what happens when the value of your home increases dramatically over time? In those cases, will you have to pay an exorbitant amount of property taxes that might break your bank account? The answer is no. The most your property taxes can increase at any given time is by 2%. This is thanks to Proposition 13. Proposition 13 limits the amount your property taxes can increase. That way, you aren't spending more money on your property taxes because the value of your home increases. Chapters: 00:00 - When are property taxes due? 02:05 - What are property taxes based on? 02:25 - What is the property tax rate? 03:42 - Do you pay more taxes when your property value increases? 05:20 - This stops you from paying more in property taxes #PropertyTaxes #CaliforniaPropertyTaxes #CalculatingPropertyTax