If you are relocating to Coronado, California’s property tax system may work differently from the one you know. Two ideas explain most of it: your bill is based on the price you pay, and it can rise only a limited amount each year afterward. Here is how that plays out.
Moving to California
California Property Tax for Newcomers: Prop 13 Explained
Moving to Coronado from another state? How California property tax works, why the bill depends on your purchase price, and what to budget in the first year.
What is different about California
In many places, the assessed value of a home is updated regularly to follow the market. In California, Proposition 13 (approved in 1978) set the base tax at 1% of assessed value and limits the yearly increase in that value to the rate of inflation or 2%, whichever is less. The value resets to the market price only when the home is sold or new construction is completed. Two neighbors with identical houses can therefore pay very different bills, depending on when each bought.
For someone moving in, the takeaway is to work from your own purchase price, not from the seller’s tax bill or from the bill on a similar house next door. The listing may show the old bill; yours will be higher if the seller has owned the home for a long time.
Worked example
The first-year surprise: the supplemental bill
How the difference between the old and new assessed value becomes an extra bill after you close.
A supplemental bill, step by step
Assumes a purchase at the typical home value in ZIP 92118 ($2,563,759) from a seller whose assessed value was $1,280,000 (a hypothetical figure for the example), taxed at 1.15%. The county’s own calculation is the one that counts.
| Step | Result |
|---|---|
| New value at purchase | $2,563,759 |
| Old assessed value | $1,280,000 |
| Supplemental assessed value (difference) | $1,283,759 |
| Annual tax on the difference at 1.15% | $14,763 |
| Closing | Months taxed | Approximate supplemental tax | Why |
|---|---|---|---|
| Closing in October | 8 months | $9,842 | From the first of the following month (November) to the end of the fiscal year on June 30 |
| Closing in March | 15 months | $18,454 | The rest of the current fiscal year (April to June, 3 months) plus the whole next fiscal year (12 months) |
A supplemental bill is separate from the regular bill and comes in addition to it. When a lender collects property tax in an escrow account, the regular bill is usually paid from that account, while a supplemental bill is often mailed to the owner directly, so watch for it in the months after closing. Ask your lender and title company how yours will be handled.
What to budget
- The regular bill, estimated at about 1.1% to 1.25% of the price a year for most homes, higher where special taxes apply. The property tax estimator lets you try your own numbers.
- The supplemental bill, a one-time catch-up that arrives within a few months of closing and is often mailed to you rather than paid from escrow.
- Escrow impounds, if your lender collects property tax with each payment. Ask how much the lender will hold at closing and how the first year will be handled.
- The homeowners’ exemption, a $7,000 reduction in assessed value for a home you live in, claimed once with the county assessor (Form BOE-266).
Dates to put on your calendar
Property tax runs on a July 1 to June 30 fiscal year. The first installment is due November 1 and becomes delinquent after December 10; the second is due February 1 and becomes delinquent after April 10. The San Diego County Treasurer-Tax Collector charges a 10% penalty on a late installment, plus a $10 fee on the second one, and lets owners pay both installments at once. If a delinquent date falls on a weekend or holiday, you have until the next business day.
Tax bills are mailed to the owner of record, so update your mailing address with the assessor after closing.
Worked example
A ten-year picture
The first-year bill on today’s typical Coronado value, with the assessed value rising at the 2% cap.
What the bill could look like, year by year
The starting point is the typical home value in ZIP 92118: $2,563,759 in Aug 2026. The tax rate used is 1.15% (the 1.00% base and a round 0.15% for bonds and local charges). The assessed value grows at the 2% ceiling, and the market value at 3% a year, only to show how the two separate.
| Year | Taxed value (2% cap) | Bill on that value | Market value at 3% a year | Bill at market value | Gap between the two |
|---|---|---|---|---|---|
| Year 1 | $2,563,759 | $29,483 | $2,563,759 | $29,483 | $0 |
| Year 2 | $2,615,034 | $30,073 | $2,640,672 | $30,368 | $25,638 |
| Year 3 | $2,667,335 | $30,674 | $2,719,892 | $31,279 | $52,557 |
| Year 5 | $2,775,095 | $31,914 | $2,885,533 | $33,184 | $110,438 |
| Year 10 | $3,063,929 | $35,235 | $3,345,124 | $38,469 | $281,195 |
Put simply, a purchase at $2,563,759 starts near $29,483 a year, or $2,457 a month. Ten years on, the owner’s bill has grown to roughly $35,235 at most; someone buying an identical home then would begin near $38,469. Left out here: special taxes, the $7,000 homeowners’ exemption and any Proposition 8 reduction.
Common questions
Is the tax lower or higher than where I live now?
That depends on where you live now. The California bill is roughly 1.1% to 1.25% of the purchase price a year, and the 2% cap limits later increases. Compare using your own numbers rather than a general impression.
What if I already own a home in California?
Certain homeowners can transfer their existing tax base to a replacement home within limits. See the state Board of Equalization’s Proposition 19 page, and ask the assessor.
Can I appeal my assessment?
Yes. A supplemental assessment can be appealed within 60 days of the mailing date of the supplemental bill, and the county explains other appeals on its assessment appeals page.
Who do I call with questions?
The San Diego County Assessor handles values and exemptions, and the Treasurer-Tax Collector handles bills and payments.
Keep exploring
- The relocation guide — Choosing a neighborhood, budgeting and your first month.
- Your first week — The checklist for the first days after the keys.
- Property tax estimator — Try your own numbers.
- Moving cost planner — Budget the whole move.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
Sources
- Public Policy Institute of California: Proposition 13, 40 years later
- San Diego County Assessor: real property assessment
- San Diego County Treasurer-Tax Collector: secured property taxes
- California State Board of Equalization: homeowners’ exemption
General information for orientation, not legal, tax, financial or appraisal advice. Details change; confirm anything that matters with the official source, your lender and your agent.