💰 How Property Taxes & Mello-Roos Work

Buying a home isn’t just about the price and mortgage — it’s also about understanding what you’ll pay each year in property taxes (and sometimes, Mello-Roos).

🏠 Property Taxes 101

In California, property taxes are typically about 1% of your home’s assessed value, plus any local voter-approved bonds or special assessments.

Your assessed value is based on your purchase price when you buy.
Under Prop 13, that value can only increase by a maximum of 2% per year, protecting you from big tax jumps.
When you sell, the next owner’s taxes reset based on their purchase price, not yours.

✅ Example: If you buy a home for $1,000,000, your annual property tax will likely be around $10,000–$12,000 per year (depending on local add-ons).

🏗️ What Is Mello-Roos?

Mello-Roos is an additional tax assessment found in some newer communities. It helps fund infrastructure and public facilities like:

New schools 🏫
Roads and sidewalks 🛣️
Parks and fire stations 🌳🚒

You’ll usually see Mello-Roos in master-planned communities or recently developed areas — for example, parts of Eastvale, Rancho Mission Viejo, Irvine, and Yorba Linda.

📅 It’s charged annually with your property tax bill and often lasts 20–40 years, depending on the district’s bonds.💡 You can find the exact Mello-Roos amount in the Preliminary Title Report or the Property Tax Bill before you buy.

📊 Why It Matters When Buying

Understanding property taxes and Mello-Roos helps you: