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Real Estate Solutions in San Francisco

The San Francisco area has a dense population that drives high demand for housing. Property taxes are significant, with rising property values leading to steep tax bills despite Proposition 13 limits.

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Property taxes in the San Francisco area are influenced by California's Proposition 13, which limits annual increases in assessed property values to 2% unless the property changes ownership. This means that while property values can soar, the tax assessment increases are capped, providing some relief to long-term homeowners. However, property taxes are still relatively high due to the region's booming real estate market.

In San Francisco, property tax rates are generally around 1.2% of assessed value, which includes local taxes and assessments. The city's high property values often lead to substantial tax bills, making property taxes a significant expense for residents.

Additionally, San Francisco offers various exemptions, such as the homeowners' exemption, which can slightly reduce the taxable value for primary residences. As the area continues to grow and attract new residents, the interplay between rising property values and tax assessments remains a critical issue, particularly concerning affordability and funding for local services.