If you lost your home or business to this month’s wildfires, whether you rebuild or relocate, you could receive significant relief on your current and future property taxes.
You can immediately reduce your repayments or postpone payments. In the end, you’ll be able to maintain the taxable value of your home before the fire, so your taxes will be lower than if you built a new home or moved elsewhere under normal circumstances.
To learn more about how to get help and what options are available in the future, check out the following guides:
If you are a home or business owner with $10,000 or more in damage to your property, the first step is to file a form with the Los Angeles County Assessor’s Office. This form is called “Property Damaged or Destroyed by Misfortune or Disaster” or “ADS-820.” You can access it from this link. Please submit the form within one year from the date of the disaster (by January 2026).
What should I do now?
Once approved, the Assessor’s Office will revalue your property. If a home or business is destroyed, the taxable value is calculated based on the land only. The lower value will remain in effect until the property is completely repaired, restored, or rebuilt.
under Executive Order Signed by Governor Gavin NewsomYou can wait until April 2026 to file this year’s property taxes without penalty. Also, Apply to Los Angeles County Treasurer and Tax Collector We ask for a long-term postponement of up to four years.
What happens if I decide to rebuild my house?
If you rebuild your home the same way it was before or up to 20% larger, you’ll pay the same property taxes as before.
California has its own property tax system, introduced with the passage of Proposition 13 in 1978. Under this system, property taxes are capped at 1% of a home’s taxable value based on the year of purchase, limiting the amount that can be taxed. It increases every year, even if the market value of the home increases further.
Let’s assume that the market value of the home destroyed in the fire was $1 million, and its taxable value this year was $600,000. With the base tax rate of 1% plus the voter-approved bond, property owners would have paid about $6,600 in taxes.
If this homeowner rebuilt the home to approximately the same specifications, i.e., similar square footage, and the same number of bedrooms and bathrooms, the homeowner would receive $600,000 of the existing taxable value of the new home. You will be charged the same tax amount because you just keep it. This benefit applies if a property owner wants to replace a 1940s ranch home with a home built to today’s fire codes and other modern standards.
Homeowners can expand their lot area by up to 20% without triggering a higher assessment. For those looking to change the use of the property beyond that, or by building an accessory dwelling unit, the addition will be valued at market value and the tax bill will increase accordingly.
What if I want to move instead?
There are multiple options for preserving your previous property tax benefits, such as when moving to a more expensive home.
Start by moving to a new home in Los Angeles County. If the new home is no more than 20% above the market value of the previous home, it will retain its previous taxable value in full.
Take the example of a home with a market value of $1 million and a taxable value of $600,000. In this scenario, even if you buy a $1.2 million home, your tax liability will still be $600,000.
The additional market value of a newly purchased home is added to the taxable amount. If you buy a home for $1.3 million, your tax liability would be $700,000. This is calculated as the existing $600,000 plus $100,000 over the allowed 20% increase.
If you want to move elsewhere in California, you can transfer the taxable value to a new home with the same market value as the destroyed home. So, to use our example again, you could buy a $1 million home in Santa Barbara County and transfer $600,000 of taxable value to the property.
If you buy a more expensive home outside of Los Angeles County, your tax liability will be mixed. A $1.3 million home in Santa Barbara would have a taxable value of $900,000. The tax savings here are significant compared to buying a new home otherwise. A homeowner with a taxable value of $900,000 pays about $9,900 in taxes per year, while a homeowner with a taxable value of $1.3 million pays about $14,300.
Los Angeles homeowners affected by the disaster may be eligible for slightly more generous benefits. Orange, San Diego, Ventura, or 10 other counties. Businesses that have opted in to the relevant property tax relief program.
You can receive property tax benefits only for rebuilding or relocation, not both.
Where can I get direct support or learn more?
These rules vary in eligibility deadlines and other nuances that affect specific situations. Therefore, it is best to contact your county assessor’s office for assistance. The office is staffed by disaster centers in both the Westside (UCLA Research Park West, Los Angeles, 10850 W. Pico Blvd.) and Eastside (Pasadena City College Community Education Center, 3035 E. Foothill Blvd., Pasadena) I’m doing it.
Assessor Jeff Plan encourages affected homeowners to file a complaint. damaged item form His office said it plans to make immediate relief available to all eligible property owners.
“It would be helpful if they would fill out a form so we know specifically who they are and how to contact them, but we would be happy to re-evaluate their assets whether they ask us or not. I intend to do so,” Pran said.
Prang also warned homeowners not to fall prey to scams by third parties promising additional property tax relief for a fee.
“There’s nothing a company can do that will produce anything different than if you were to do it yourself,” Pran said. “There’s no reason for people to pay.”
Additional resources are available online at the following website: Evaluator and State Board of Equalization.
