Plan on about 1.12% of your purchase price a year, or about $11,206 per $1,000,000, plus local parcel charges where they apply. Divide the annual estimate by twelve to include it in your monthly payment. I’m Justin Borges, and I help Pasadena and San Gabriel Valley buyers of older and character homes work out this cost before they remove contingencies. This estimate uses fiscal 2025-26 rates from the LA County Taxpayers’ Guide; the county’s 2026-27 rates come out in the fall; I confirm them before you write an offer.
Why does the purchase price matter?
Proposition 13 establishes a base year value when a property changes ownership. The county says the new value is based on current fair market value, normally the purchase price. It also describes a maximum inflation increase of 2% per year on that base year value until a subsequent change of ownership. New construction can also trigger reappraisal. The 2% limit applies to assessment growth; rates and direct assessments are separate parts of the bill. The rules are explained in the county guide.
This distinction matters when you compare a listing with a neighbor’s bill. Someone who has owned for a long time may have an assessed value that grew under the annual limit. A new buyer generally starts with a new value based on the purchase. The homes may look similar while their taxable values, and therefore their value-based taxes, differ. Your base year value is normally the purchase price, and the inflation cap is 2% a year.
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What makes up the rate and the bill?
The county’s general levy is 1% of net taxable value. Voter-approved debt adds rates for applicable bonds, while direct assessments appear as separate charges that are not based on the assessor’s valuation. The county’s bill explanation, shows these categories. A parcel’s tax rate area determines which value-based rates apply.
For a city of Pasadena parcel in Pasadena Unified, the county’s fiscal 2025-26 guide lists rates for school and community college bonds, city debt service, and the Metropolitan Water District. Added to the 1% general levy, these produce 1.120618%, or about 1.12%, before direct assessments. This is our calculation from the county guide.
For each $1,000,000 of assessed value, that illustrative rate comes to about $11,206 before direct assessments. If you have a property in mind, call me at (213) 262-5092.
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What does a worked example look like?
Here is the math on a hypothetical $1,000,000 purchase in Pasadena. If the assessed value starts at that amount and the prior-year illustrative rate of 1.120618% applies, the value-based tax would be about $11,206 annually before any homeowners’ exemption and direct assessments. The calculation uses the county’s fiscal 2025-26 rates.
| Illustrative component | Calculation or treatment |
|---|---|
| Purchase and starting assessed value | $1,000,000, assuming assessed value equals price |
| Value-based tax | About $11,206 at 1.120618% |
| Eligible homeowners’ exemption | Up to $7,000 off assessed value, about $78 in tax at that rate |
| Direct assessments | Added separately; check the parcel |
The exemption is a reduction in assessed value, not a dollar-for-dollar credit against the bill. Eligibility depends on the owner occupying the dwelling as a principal residence on the lien date, January 1. The county guide says it does not apply to a rented, vacant or second home, and exemptions generally do not reduce direct assessments. Once granted, it remains in effect until terminated. Ask the assessor about the filing window for your homeowners’ exemption.
For help estimating the tax on a particular home, call or text Justin.
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Which Pasadena assessments should I check?
Direct assessments are a reason the percentage calculation alone is incomplete. The City of Pasadena fee schedule, checked 2026-11-10, lists a fiscal 2026 library special tax of $49.17 per single-family residence or condominium unit. Pasadena Unified also has a Measure EE parcel tax of $90 per parcel, with an exemption that eligible homeowners age 65 or older can apply for.
Other lines can include storm drain, flood control and district charges. Applicability depends on the parcel, and the seller’s bill can help identify existing lines even though its assessed value is not your future value. The library and Measure EE charges are separate additions where both apply.
For a broader ownership budget, see our cost of living in Pasadena guide.
To review the charges on a property you are considering, contact Justin.
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Why might another bill arrive after closing?
A supplemental assessment reflects the difference between the old adjusted base year value and the new value. It can be positive or negative and is prorated for the months remaining in the fiscal year, which runs July 1 through June 30. The lien attaches on the first day of the month after the event. When a change in ownership triggers it, the new owner is billed. See the Auditor-Controller FAQs and county guide.
Bills are mailed throughout the year. The county sends supplemental bills directly to the property assessee even if the mortgage has a tax impound account, so ask the lender whether it will pay them. I encourage buyers to keep a separate reserve for these bills.
A change in ownership from January 1 through May 31 produces two supplemental assessments, one for the current fiscal year and one for the next.
For help planning your ownership budget, call or text Justin.
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When is the regular bill due?
The annual secured bill has two installments. The first is due November 1 and becomes delinquent if not received or USPS-postmarked by December 10; the second is due February 1 and becomes delinquent April 10. The county describes a 10% delinquency penalty and an additional $10 cost on the second installment. Check the actual bill and the county payment guidance, checked 2026-11-10, for your obligations.
When comparing a condo and a small historic house, I would put tax estimates alongside the other costs of each specific property. A home’s ownership budget can also include earthquake coverage; our earthquake insurance guide explores that decision.
If an assessment looks wrong, our LA County property tax appeal guide explains the appeals angle.
To talk through the costs of a Pasadena purchase, contact Justin.
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Frequently Asked Questions
Does the seller’s property tax bill tell me what I will pay?
Not reliably. A purchase generally establishes a new assessed value at current market value, normally the purchase price, so the seller’s older, capped value is a poor substitute for an estimate based on your purchase. See the LA County Taxpayers’ Guide, checked 2026-11-10.
Is the Proposition 13 limit a cap on my total tax bill?
No. The county describes a maximum annual inflation increase of 2% on the base year value until a subsequent change of ownership. Rates and direct assessments are separate parts of the bill. See the LA County Taxpayers’ Guide, checked 2026-11-10.
What is a supplemental property tax bill?
It reflects the difference between the old adjusted base year value and the new value, prorated for the relevant fiscal year. A change in ownership can produce a positive or negative supplemental assessment. See the LA County Taxpayers’ Guide and Auditor-Controller FAQs, checked 2026-11-10.
For help comparing the costs of homes you are considering, call or text Justin.
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More Questions
Will my lender automatically pay a supplemental bill?
Do not assume so. The county says supplemental bills go directly to the property assessee even when there is a mortgage impound account. Ask your lender whether it will pay the bill. See the LA County Taxpayers’ Guide, checked 2026-11-10.
How does the homeowners’ exemption work?
For an eligible owner who occupies the dwelling as a principal residence on the lien date, the exemption removes up to $7,000 from assessed value. It is not a $7,000 reduction in the tax bill, and generally does not reduce direct assessments. See the LA County Taxpayers’ Guide, checked 2026-11-10.
What if I disagree with my assessment?
Review the assessment and the evidence for the property, then look into the county’s appeal process. Our guide to appealing an LA County property tax assessment can help you identify the next steps.
If you have questions about estimating a home’s property tax, contact Justin.
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Sources
- LA County Auditor-Controller, Taxpayers’ Guide FY 2025-26, checked 2026-11-10
- LA County Auditor-Controller, Property Tax FAQs, checked 2026-11-10
- LA County Property Tax Portal, Annual Secured Property Tax Bill, checked 2026-11-10
- City of Pasadena, FY 2026 Schedule of Taxes, Fees and Charges, checked 2026-11-10
To discuss your Pasadena home search, call or text Justin.
Justin Borges
Team Lead, The Borges Real Estate TeamDRE #01940318
With over 13 years in Southern California real estate, Justin specializes in probate sales, trust properties, and character homes. His expertise in 1031 exchanges and historic preservation has helped hundreds of clients navigate complex real estate transactions.