Good news for those seeking oceanfront views: Living in closer proximity to the ocean does not necessarily mean paying higher taxes in San Diego. On average, taxpayers pay about a one percent property tax rate, though the rate differs between towns. The city of San Diego has the highest property tax rate in the county, for example, at 1.23 percent.
As you move more inland to El Cajon, property taxes only decrease slightly to 1.21 percent. Located across the San Diego Bay from downtown San Diego, residents in Coronado pay the lowest property tax rate in the county, at about 1.04%. As mandated by law, property taxes are limited to only a two percent increase per year.
Proposition 13, which was approved by California voters in 1978, sets the limits and allows for property owners to keep the assessment value on the property at time of purchase. Unless major renovations or change in ownership occur, tax bills only increase slightly by year. If you and your friends are in the market for downtown San Diego condos, for example, and you make a purchase this year, you will be permitted to pay property taxes on the assessment value from 2021.
Rates vary by locality. Property taxes are determined by local governments, but can often be correlated to crime rates, school district performance, and if surrounding properties are presentable. While one may assume areas near the ocean would draw higher property taxes, localities sometimes adopt lower tax rates to attract incoming residents and incentive to buy a home and stay in the community.
San Diego is currently not having any issue attracting a new generation of residents. With their investments in real estate dedicated to life sciences in the area, college graduates in these subjects will likely find their way down to the bay. Redevelopment is also playing a major role in attracting people, and the mayor projects that the population will nearly double in the next two decades.