If you own a home or property in San Francisco, understanding how your property tax bill is calculated isn’t just smart—it’s essential. With rising property values and evolving market trends, you want to be sure you're not overpaying. This guide will walk you through everything you need to know: from how assessments are made to how you can reduce your bill through exemptions and appeals.
San Francisco County property taxes can seem complicated, particularly as the real estate market changes. Understanding the process is key to ensuring you are not overpaying. In this article, you'll learn
Strategies to manage or reduce your tax bill
How property value is assessed and determined
How to spot over-assessments
Resources that can assist you, such as relief programs for specific situations
For more information on San Francisco County property taxes, read our California property tax overview and review the latest San Francisco County property tax trends to understand how assessments are affecting local homeowners.
How Does the San Francisco Assessor-Recorder’s Office Determine Property Value?
Your San Francisco property tax bill is based on your property's assessed value, which the San Francisco Assessor-Recorder’s Office determines. The office uses several standard appraisal methods to calculate what your property would likely sell for in today’s market. Some of the factors considered include:
Location
Square footage
Improvements to the property
The overall condition of the property
The office uses three different, yet standard, appraisal methods you should know about:
Cost approach: The cost approach calculates the total cost of replacing a property, encompassing all expenses, from labor and land to materials and soft costs, such as architectural fees. The depreciation of the property is subtracted from the estimated current value to get the replacement price.
Income approach: The income approach is used only for income-generating properties — often including commercial real estate buildings, hotels, and apartments. Through this method, the expected return on investment is a part of the valuation. The income appraisal approach considers operating expenses, financial risk, and maintenance.
Market approach (most common for homes): This is the most common approach used for residential properties. It compares the home's value to similar properties that have recently sold on the market. By looking at comparable properties and market sales, it's easier to estimate the true value of the home on the market and what it might sell for if it were listed at that time.
A home or property assessment is designed to tell you what the property could reasonably sell for on the open market. If you disagree with this assessment, then your next step is to file an appeal or, depending on the circumstances, to have an expert third-party, such as Ownwell, file the appeal on your behalf.
When and How to File a Property Tax Appeal
If you believe your property's assessed value is too high as of January 1, you have two opportunities to request a reduction. Note that you cannot appeal your tax rate, but you can appeal the value to which your rate is applied.
1. Assessor's Informal Review: The Assessor-Recorder's Office offers an informal review period, typically between March and April. During this time, you can submit evidence (like comparable sales) directly to the assessor's staff. They will review your information and may offer a reduction without the need for a formal hearing. This is the simplest and fastest way to correct an over-assessment.
2. Formal Appeal With the Assessment Appeals Board (AAB) If you're unsatisfied with the outcome of the informal review, or if you miss that window, you can file a formal appeal with the Assessment Appeals Board (AAB). The filing period for a formal appeal is July 2 through September 15. This is a more structured process that will likely result in a formal hearing to present your case.
What Types of Evidence Are Accepted in a Property Tax Appeal?
To appeal, you'll need evidence of comparable sales within 90 days of the valuation date; beyond 90 days isn't as relevant and carries less weight.
The age of your property, the building size, and the lot size all have an impact on the property's value, so you'll want to find comparable sales to support your appeal. There are different standards used to judge if a sale is comparable, such as whether the sale was on the open market or if the property is similar enough to yours. Thus, knowing as much as possible about your property and similar surrounding properties can help you maximize your appeal case.
You may want to include additional evidence in the form of photographs or inspection reports of defects, evidence of changes that have negatively impacted your property's value, or independent appraisals.
What Property Tax Exemptions Are Available in San Francisco County?
There are several types of property tax exemptions available to homeowners in San Francisco. Some include the homeowner’s exemption, veteran exemptions, disaster relief, and other relevant local relief programs.
It’s important to note that while Ownwell can help with appeals, we do not process disaster relief exemption applications in San Francisco.
How Can Homeowners Qualify for These Exemptions?
Each exemption comes with its own eligibility criteria. For example, if you want to get the Homeowner's Exemption, also called the homestead exemption, you need to show that the property is your primary residence and has been since January 1 of the tax year. On the other hand, Veteran exemptions can vary based on factors such as disability, income thresholds, and service status. Disaster relief often requires proof of damage.
How Can I Tell if My Property Is Over-Assessed?
A simple way to determine if your assessment is too high is to compare your property’s assessed value to recent sales of similar homes in your neighborhood. If your home’s assessed value is significantly higher than the sales you find, you may be paying more in taxes than you should. San Francisco property tax trends can tell you how assessments are lining up with the market in 2025.
What is the Current Property Tax Rate in San Francisco County?
The current tax rate in San Francisco is 1.22%, which is slightly more than one percent of the assessed value of a property. However, voter-approved bonds and local add-ons can increase this amount depending on your neighborhood.
How Is My Property Tax Bill Calculated?
To calculate your tax bill, you start with the assessed market value set by the Assessor-Recorder’s Office. This value is then multiplied by the tax rate, which includes local levies and the initial one percent base rate. This value is then multiplied by the property tax rate. The rate starts with a one-percent base rate established by Proposition 13, and is increased by additional rates to pay for local voter-approved bonds and special assessments.
Assessed Value x Tax Rate = Annual Property Tax Bill
Most homeowners pay in two installments: December and April.
What Should I Do if I Think My Property Tax Is Inaccurate?
If you receive a bill and believe it’s incorrect, the initial step you should take is to file a property tax appeal within the open filing period. You need to contact the San Francisco Assessment Appeals Board at that time or have a representative, such as Ownwell, do so for you. You’ll need to be ready to present your evidence, including:
Comparable sales
Appraisals
Proof of property issues
When you go through the appeals process, it will include a hearing where your case will be reviewed. After this, a decision will be made about your taxes.
Frequently Asked Questions
Understanding San Francisco property taxes can be complex, especially for first-time homeowners or those unfamiliar with California's tax laws. Below are answers to common questions that can help clarify the process and empower you to make informed decisions.
1. Do special considerations for disaster relief or unique situations exist?
Special exemptions and relief programs do exist for homeowners who find themselves in extraordinary circumstances. These programs are designed to provide temporary or adjusted valuations to make up for damage that has occurred due to events such as natural disasters. However, these relief options are separate from standard appeals, so you’ll need to apply for them separately through the Assessor-Recorder’s Office.
2. How often are properties reassessed in San Francisco County?
Under California’s Proposition 13, properties are normally reassessed when a home or property is sold and gets a new owner or when it’s built (new construction). Property values in California generally increase by no more than two percent annually. For homeowners, this means assessments remain stable unless you sell, buy, or make significant improvements to your home.
3. What resources are available to help me manage my property taxes?
Homeowners can contact the San Francisco Assessor-Recorder’s Office for exemption applications and assessment-related questions. Online tools, such as property search portals and sales databases, can be helpful as you build your appeal.
Companies like Ownwell specialize in helping homeowners file appeals to confirm their property taxes are fair, ensuring you file your appeal on time and don't miss out on the opportunity this tax year.
4. What happens if I miss the appeal deadline?
If you miss the formal appeal window (July 2 to September 15), you’ll need to wait until the next assessment cycle. However, informal reviews may still be an option earlier in the year.
Ready To Lower Your San Francisco Property Tax Bill? Take Action Today
Figuring out SF county property taxes can be stressful, but you don’t have to tackle it on your own. Knowing how your home is assessed and filing an appeal on time can make a big difference in what you owe.
If your property value looks too high compared to the market, it’s worth taking another look before the 2025 deadlines pass. Ownwell is here to help you identify potential savings and guide you through the process step by step.
