Aaron Knutson · July 20, 2026
When people budget for a home in Placer or Sacramento County, they usually plug in one number for property taxes: about 1 percent of the price. That is the starting point, but it is rarely the whole story. On a lot of local tax bills there are actually three different things going on, and the difference between them can swing your real monthly payment by a few hundred dollars. Here is how I explain it to clients.
This is the part everyone knows. Under Prop 13, your base property tax is roughly 1 percent of your home assessed value, and that assessed value is essentially your purchase price when you buy. From there it can only rise about 2 percent a year, which is what keeps long-time owners taxes predictable. On a home priced at 600,000 dollars, the base bill lands somewhere around 6,000 dollars a year. Simple enough — but it is only line one.
When you buy, the county reassesses the home to your purchase price. If the previous owner was paying tax on a much lower assessed value, the county sends a one-time supplemental bill for the difference, prorated for the rest of the tax year. It is not a permanent extra tax and it is usually not in your escrow at first — it is a separate bill that arrives in the mail a few months after closing, and it catches people off guard every year. Set money aside for it up front so it is not a shock.
This is the line that changes from one neighborhood to the next. In newer master-planned communities, a Community Facilities District (often called Mello-Roos, after the law that created it) adds a special assessment to pay for the roads, parks, and schools that made the new neighborhood possible. It shows up as a direct charge, completely separate from the 1 percent base rate.
Here is the part worth knowing: Mello-Roos is not a scary blanket number. I have seen buyers assume it is 3,000 dollars a year across the board, when a real Placer County bill I recently reviewed showed a district charge of about 960 dollars for the year. Older, built-out areas — much of Auburn, Carmichael, or Citrus Heights — often carry little or none at all, while a brand-new tract in Lincoln, Roseville, or Folsom Ranch might carry a meaningful one. The only way to know is to read the actual parcel tax bill, and that is something I will always help you do before you write an offer.
All three of these feed your qualifying, not just your comfort. When a lender calculates what you can afford, the property tax figure includes the base rate and any ongoing Mello-Roos — so a home with a heavy CFD charge effectively qualifies you for a little less house than the same-priced home without one. Getting the real tax picture early means your pre-approval reflects the homes you are actually shopping, with no surprises when the file reaches underwriting.
One percent is the start, not the finish. Before you fall for a listing, pull the parcel tax bill and separate the base rate from the supplemental catch-up and any Mello-Roos. It takes a few minutes, and it is the difference between a monthly payment you planned for and one that stings. If you are looking in Placer or Sacramento County and want help reading a specific bill, that is exactly the kind of thing I am happy to walk through with you.
Ready to talk it through?
Aaron gives you the straight answer — no pressure, no jargon.
