Understanding San Francisco Real Estate Taxes: A Friendly Guide from Tiffany’sView
San Francisco real estate has its own rhythm—beautiful, vibrant, a little quirky, and definitely unique. And just like our neighborhoods, our property taxes come with their own set of rules. Whether you’re a longtime homeowner, thinking about selling, or simply dreaming up your next move, understanding how SF real estate taxes work can help you feel more confident and prepared on your home journey. Here’s the breakdown, in plain English, from Tiffany’sView.
How Property Taxes Are Calculated
In California, property taxes are based on your assessed value—generally the price you paid for the home. In rare cases, the assessor may rely on market value and comparable sales to determine this amount.
A reassessment is triggered by two main events:
• A change in ownership
• Major improvements or additions
When either happens, the county updates the value to reflect today’s market—this becomes your new base year value.
Thanks to Proposition 13, that assessed value can only increase by a maximum of 2% per year, no matter how unpredictable the market feels. That stability is one of the things many homeowners appreciate most.
San Francisco’s base property tax rate typically hovers around 1.18% of the assessed value, with slight annual adjustments. So if you purchased a home for $1,000,000, your property tax bill will start at about $11,800 per year. Not exactly tiny—but predictable.
Supplemental Taxes: The Surprise Most Buyers Don’t Expect
One thing that tends to catch new buyers off guard is the supplemental tax bill. After you close, the county reassesses your home based on the purchase price. That triggers a one-time bill that “supplements” what the previous owner was paying.
Your supplemental amount depends on:
• When you close (partial year = prorated bill)
• The difference between the old assessed value and your purchase price
It’s not the most exciting mail to receive, but it’s completely normal—and planning for it makes life much smoother.
Mello-Roos & Special Assessments
San Francisco also includes annual assessments for community services, schools, infrastructure, and local bonds. Think of them as additional line items on your tax bill. These vary by neighborhood and property type, and your Natural Hazard Disclosure (NHD) report will usually include a clear breakdown. And of course—your agent (hi, that’s me!) can walk you through it anytime.
Transfer Taxes: The Big One at Closing
When a property changes hands in San Francisco, a city transfer tax is due at closing. The rate is based on the sales price and ranges from $2.50 per $500 of value all the way up to $27.50 per $500 for higher-priced properties. Traditionally, sellers pay this tax—but like everything in real estate, it’s negotiable.
My Take
Taxes aren’t glamorous, but clarity is empowering. Whether you’re buying, selling, or simply planning ahead, understanding your numbers helps you make confident decisions. And if you ever want to walk through the details of your specific home, neighborhood, or goals, I’m always here—your trusted partner in elevated neighborhood living.
TiffanysView — where your home journey begins.
