How Property Taxes Work in Marin, San Mateo, and San Francisco Counties
(NOTE: For informational purposes only. Consult with your tax professional for details on your particular tax situation.)
Understanding Property Taxes in Marin, San Mateo, and San Francisco Counties
If you're buying or selling a home in the Bay Area, understanding how property taxes work is essential for making informed decisions. While property taxes are governed by California state laws, local tax rates and assessments can vary significantly between counties like Marin, San Mateo, and San Francisco.
Let’s break down how property taxes are calculated and what you can expect in each county.
How Property Taxes Are Calculated in California
Under Proposition 13, California limits the general property tax rate to 1% of a property's assessed value, plus any voter-approved local taxes and special assessments. Here's how it works:
Base Year Value: When a property is purchased, its assessed value is usually the purchase price.
Annual Increases: The assessed value can increase by up to 2% per year, regardless of market value changes.
Tax Rate: The total tax rate is typically around 1.1%–1.25%, depending on the location.
Marin County Property Taxes
Marin County is known for its scenic beauty, excellent schools, and luxury real estate. Here's how property taxes break down:
Base Tax Rate: Approximately 1.0% of assessed value
Additional Bonds & Levies: Around 0.15%–0.20% for school bonds, water districts, and local assessments
Effective Tax Rate: Roughly 1.15%–1.2%
🧠 Pro Tip: Marin properties near towns like Sausalito, Mill Valley, and Tiburon may have higher local assessments due to infrastructure projects or special district funding.
San Mateo County Property Taxes
Located just south of San Francisco, San Mateo County includes cities like Burlingame, Redwood City, and Atherton. The property tax landscape includes:
Base Tax Rate: 1.0% (standard across California)
Additional Assessments: Vary by city and school district; common additions include school bonds and transportation taxes
Effective Rate: Between 1.15% and 1.25%
💡 Investor Insight: Homes in cities like East Palo Alto or South San Francisco might have slightly lower assessments compared to luxury enclaves like Hillsborough.
San Francisco County Property Taxes
San Francisco is unique because it's both a city and a county. The property tax system here follows state guidelines with additional citywide levies:
Base Tax Rate: 1.0%
Add-ons: Includes levies for city bonds (e.g. transportation, school modernization)
Effective Rate: Typically 1.18%–1.22%
📍 Local Detail: Condos and TICs (tenancy-in-common properties) have the same property tax structure as single-family homes. However, some buyers may qualify for exemptions or tax savings through programs like the Homeowners’ Exemption or Mello-Roos exclusions (rare in SF but worth checking).
Common Property Tax Questions for Bay Area Homeowners
1. Can my property taxes increase drastically after I buy?
No. Under Prop 13, assessed values can only rise by up to 2% annually—unless you make major renovations or sell the home (which triggers reassessment).
2. What happens when I remodel my home?
Improvements like adding square footage or a new ADU (accessory dwelling unit) may increase your assessed value, and your taxes will go up accordingly.
3. Are there exemptions or tax breaks?
Yes! California offers a Homeowners’ Exemption of $7,000 off the assessed value for owner-occupied primary residences. There are also senior transfer exemptions under Prop 19.
Final Thoughts: What Buyers and Sellers Should Know
Whether you're buying a home in Tiburon, selling a condo in SoMa, or investing in a duplex in Redwood City, knowing how property taxes are calculated in your specific county helps you:
Budget for ongoing ownership costs
Evaluate long-term affordability
Prepare for tax bills and reassessments
Work with a Local Expert
As a former scientist turned trusted Realtor, Nona Ehyaei brings a uniquely analytical approach to buying and selling homes in the Bay Area. She helps clients understand every financial detail—from property taxes to investment potential—to make confident real estate decisions.