By Paarth Shah, REALTOR® · July 20, 2026 · The Peninsula (San Mateo County)
If you are buying on the Peninsula, property taxes are a real line in your monthly budget, not a footnote. Here is how they work in San Mateo County and what you can actually expect to pay.
California's Proposition 13 sets the base property tax at 1% of a home's assessed value, and the assessed value is generally your purchase price, adjusted upward by no more than 2% per year while you own it. That base is the same countywide. What varies is everything layered on top: voter-approved school bonds, special district levies, and in some newer neighborhoods, Mello-Roos community facilities assessments.
Once you add those, San Mateo County's effective rate typically lands around 1.1% to 1.3% of assessed value, with a countywide median commonly cited near 1.23% (Ownwell, tax-rates.org). Rates differ by city and tax code area. East Palo Alto sits toward the higher end near 1.47%, while some established areas like Palomar Park run closer to 1.07%. The differences come mostly from local bond measures, not from the county changing the base rate.
What does that mean in dollars? Because Peninsula home values are high, the bills are high even at a modest rate. The median annual property tax bill in San Mateo County has been reported around $9,758 (tax-rates.org), well above the national median. A useful rule of thumb: estimate roughly 1.2% of your purchase price per year, then confirm the exact tax code area for the specific address. On a $1.6 million home, that is somewhere near $19,000 a year, or about $1,600 a month before insurance.
Two things worth knowing before you buy. First, your taxes reset to your purchase price when you buy, so the prior owner's low assessed value does not carry over to you. Budget from the price you pay, not the current tax bill on the listing. Second, if the home is in a Mello-Roos district (more common in newer developments), that adds a fixed annual charge on top of the percentage-based tax, so ask for the full tax bill detail during your review period.
Property tax is one of the more predictable costs of Peninsula ownership, which is helpful for planning. If you want a quick, address-specific estimate before you write an offer, I am glad to pull the tax code area and run the numbers with you. Reach me through the contact page or at paarth@brokerbela.com.
The base rate is California's 1% of assessed value under Proposition 13, and with local school bonds and special assessments the effective rate typically runs about 1.1% to 1.3%, with a countywide median near 1.23% and median annual bills around $9,758.
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This is general market commentary, not financial, investment, or legal advice; figures are as of publication and can change. Verify specifics, including any school assignments, ratings, or boundaries, independently. Bela Realty & Investments is committed to Equal Housing Opportunity and does not steer clients toward or away from any neighborhood on the basis of a protected characteristic.