The Truth About Marin County Property Taxes

Property taxes are one of the most misunderstood parts of buying a home in Marin County — and because home prices are high, even small differences can have a big impact on your budget. Whether you're a first-time homebuyer, relocating from San Francisco, or preparing to sell, understanding how property taxes actually work in Marin is essential.

This guide breaks everything down in simple, accurate terms.

1. Proposition 13 Is the Foundation of Marin Property Taxes

California’s Prop 13 governs how property taxes are calculated — and it’s the primary reason long-time Marin homeowners often pay significantly less than new buyers.

Key components of Prop 13:

• Property taxes are based on initial purchase price, not current home value.

• Annual increases are capped at 2% per year, regardless of market appreciation.

• The base tax rate in Marin hovers around 1% of assessed value.

This means two homes on the same street can have drastically different tax bills depending on when they were purchased.

2. The Real Tax Rate Is Closer to 1.1%–1.3%

While the base rate is approximately 1%, additional local assessments and bonds increase the effective rate.

Typical components of your Marin County property tax bill:

• 1% base tax (Prop 13)

• Local school parcel taxes

• City or district bonds

• Special assessments (parks, libraries, flood control)

• Mello-Roos taxes (rare in Marin, more common in newer California developments)

Most homeowners pay somewhere between 1.1% and 1.3% of their assessed value each year.

3. Supplemental Taxes Surprise Many First-Time Buyers

When you buy a home in Marin, you will likely receive a supplemental tax bill.

Why?

The county adjusts the assessed value from the previous owner’s price to your purchase price.

Important notes:

• Supplemental taxes come in addition to your normal tax bill.

• They often arrive months after closing.

• Many buyers don’t expect them — and they can be thousands of dollars.

A good agent or lender should explain this clearly upfront.

4. School Districts Matter (And Influence Taxes)

Marin is known for excellent public schools, but that quality comes from strong local funding.

Areas with higher school-related taxes often include:

• Ross School District

• Reed Union (Tiburon/Belvedere)

• Kentfield School District

• Mill Valley School District

Buyers should consider both the tax rate and the value those schools add to long-term appreciation.

5. Fire Zones & Flood Zones Can Affect Insurance Costs — Not Taxes

Many buyers assume fire-risk areas or waterfront zones increase property taxes.

They don’t.

Instead, they affect:

• Homeowners insurance

• Wildfire insurance premiums

• Flood insurance

• Total monthly housing cost

Taxes stay based on assessed value, but your overall cost of ownership may rise depending on location.

6. How Transfers, Renovations, and Inheritance Affect Taxes

Transfers to children or grandchildren

Under Prop 19, most parent-to-child transfers now trigger reassessment unless it’s a primary residence under specific value limits.

Major renovations

Significant improvements (new ADU, additions, structural changes) can increase assessed value.

Buying land or new construction

Your assessed value reflects market value when construction is completed.

7. Why Property Taxes Stay Low for Long-Term Owners

Because Prop 13 caps annual increases at 2%, someone who bought a Mill Valley home in 1992 for $400,000 may still be paying taxes on a value under $700,000 — even if the home is now worth $2.5 million.

This is why many longtime Marin residents keep their homes for decades.

8. Property Taxes and Home Value Appreciation: A Tradeoff

Marin’s taxes may feel high in dollar amount — but they remain relatively low as a percentage of market value compared to many U.S. states.

Why?

• High home values

• Limited inventory

• Strong long-term appreciation

• Low annual assessment increases

Buyers in Marin often benefit more from appreciation than they lose in taxes.

9. How to Estimate Your Marin Property Taxes Accurately

A good rule of thumb:

Annual property tax = 1.1% to 1.3% of purchase price

Example:If you buy a $1,500,000 home:Expect $16,500–$19,500 per year, plus potential supplemental taxes.

Final Thoughts

Marin County property taxes are complex, but once you understand the structure — Prop 13, supplemental taxes, assessments, and local funding — the system becomes far more predictable.

The key is knowing what you’ll pay now, how it may increase over time, and how taxes differ by area. With this clarity, buyers and homeowners can plan with confidence in one of California’s most desirable counties.