The wildfires damaged my home. What happens to my property taxes?

The wildfires have burned down more than 10,000 buildings, including businesses and homes. It will likely take weeks of cleanup until people can safely return, and for many whose homes burned down, plans are already underway to rebuild.

Despite the natural disaster, there’s still Uncle Sam to contend with. Questions remain about the future of residents’ property taxes and how it will work if they move or rebuild. Here are some answers.

Fire damage and taxes

California tax code says that if a major calamity, such as a fire, earthquake or flooding, destroys your property, you may be eligible for property tax relief. It will depend on whether your county has adopted a disaster relief ordinance, which Los Angeles County has.

Keep up with LAist.

If you're enjoying this article, you'll love our daily newsletter, The LA Report. Each weekday, catch up on the 5 most pressing stories to start your morning in 3 minutes or less.

Subscribe

The cut would be a temporary reduction in your property’s assessed value, which is the figure you pay taxes on if you’re a homeowner. To get the cut, you must:

•  Have lost at least $10,000 of the property’s current market value.
•  File an application with the county assessor’s office within 12 months.

Once your application is approved, the county assessor will reevaluate your property to reflect its damaged condition and issue a refund if you’ve already paid.

That reduced value will remain until you finish repairs, assuming you continue to live there. If your property is damaged and restored in the same tax year, you’ll get a refund from the damage date, but you’ll also get a supplemental tax bill starting from the restoration date.

You are still required to pay your property tax bill while you wait for a refund, but disaster declarations also make it possible to ask for installments to be deferred. Under an executive order, Gov. Gavin Newsom has suspended penalties and interest on late property tax payments in burned areas until April 10, 2026 — effectively extending the deadline for residents.

Visit the L.A. County assessor’s office website to find out more.

What about rebuilding or buying a new home?

Tax relief can be transferred to a new home if your home was destroyed.

During a state of emergency, Proposition 19 allows you to transfer your home’s lower base tax value to a newly purchased or newly constructed replacement once per disaster within two years after selling that damaged property.

This can be done regardless of which California county you move to, as long as it’s within two years. If you end up purchasing a more expensive home, the portion over the home’s original value “will be reassessed at current market value,” according to the county assessor's office.

How do I know which property types count?

According to the state, this is for “owners of real property, business equipment and fixtures, orchards or other agricultural groves, and to owners of aircraft, boats, and certain manufactured homes.”

(Real property refers to the land and anything affixed to it, like a house.)

What if my home wasn’t destroyed or damaged?

If your property was unscathed, there may still be tax implications for you.

Property owners can get a “decline-in-value” review if market values have dropped. The annual process has a filing period from July 2 to Nov. 30, so look into it now and prepare.

It’s unclear how these wildfires will affect home values nearby, given the large scope of loss and increased burden on the housing market. It will likely vary based on fire risk and proximity — but research shows that property values can go up or down after a wildfire.