In the event that you have lost your residence or business due to the wildfires this month, whether you choose to reconstruct or move, you could qualify for substantial assistance regarding your current and future property tax obligations.
You can instantly lower your payments or defer them. Ultimately, you will be able to preserve the taxable assessment of your property prior to the fire, thus ensuring your taxes are lower than if you were erecting a new residence or relocating under standard conditions.
To discover further information about obtaining assistance and what alternatives may be available in the future, consult the guides below:
What should I do immediately?
If you are a homeowner or business proprietor with damages totaling $10,000 or more, the initial step is to submit a form to the Los Angeles County Assessor’s Office. This form, known as “Property Damaged or Destroyed by Misfortune or Calamity,” or “ADS-820,” can be retrieved via this link. Please ensure you submit the form within one year from the disaster date (by January 2026).
Upon approval of the form, the Assessor’s Office will reassess your property. If a residence or business is completely destroyed, the taxable value is assessed strictly on the land itself. This reduced value will remain valid until the property is entirely repaired, restored, or reconstructed.
Under an executive directive signed by Governor Gavin Newsom, you are permitted to delay filing this year’s property taxes until April 2026 without incurring penalties. You are also eligible to apply to the Los Angeles County Treasurer and Tax Collector for an extension of up to four years.
What occurs if I choose to rebuild my residence?
If you reconstruct your home in the same manner as it previously was or make it up to 20% larger, you will incur the same property taxes as before.
California has a distinctive property tax structure initiated with the enactment of Proposition 13 in 1978. Under this arrangement, property taxes are restricted to 1% of a home’s taxable value as per the year of acquisition; it rises each year, regardless of any further increase in the home’s market value.
Consider a scenario where the market value of the home that was destroyed in the fire was $1 million, and its taxable value this year was $600,000. With a base tax rate of 1% plus the bond approved by voters, property owners would have been liable for approximately $6,600 in taxes.
If this homeowner reconstructs the residence to similar specifications—i.e., equivalent square footage and the same number of bedrooms and bathrooms—they would retain $600,000 of the existing taxable value for the new home. As you merely retain it, you will be taxed the same amount. This advantage applies if a property owner wants to replace a 1940s ranch home with a structure built to contemporary fire codes and other modern standards.
Homeowners have the ability to expand their property area by up to 20% without triggering a higher assessment. For those intending to exceed this limit or alter the property’s use, such as by constructing an accessory dwelling unit, the addition will be valued at market rates and the tax bill will rise accordingly.
What if I decide to relocate instead?
There are several alternatives for maintaining your prior property tax benefits, especially when transitioning to a costlier home.
Begin by relocating to a new residence within Los Angeles County. If the new home’s value is no more than 20% over the market value of the previous home, it will fully keep its former taxable value.
For instance, suppose a home had a market value of $1 million and a taxable value of $600,000. In this case, if you purchase a home for $1.2 million, your tax liability will still remain at $600,000.
The increased market value of the newly acquired home is computed into the taxable amount. A home bought for $1.3 million would result in a tax liability of $700,000, calculated as the existing $600,000 plus an additional $100,000 over the permitted 20% increase.
If you wish to move to another part of California, you can transfer the taxable value to a new home of equivalent market value as the destroyed residence. For example, you might buy a $1 million home in Santa Barbara County and transfer $600,000 of taxable value to that property.
If you purchase a more expensive residence outside Los Angeles County, your tax liability will be mixed. A $1.3 million home in Santa Barbara would hold a taxable value of $900,000. The tax advantages are significant in comparison to acquiring a new home under different circumstances. A homeowner with a taxable value of $900,000 incurs about $9,900 in taxes annually, whereas one with a taxable value of $1.3 million pays approximately $14,300.
Homeowners who have been affected by disasters in Los Angeles and move to Orange, San Diego, Ventura, or any of the other 10 counties participating in property tax relief programs may obtain marginally more favorable benefits.
You can only receive property tax benefits for either rebuilding or relocating, not for both.
Where can I obtain direct assistance or find additional information?
The regulations related to eligibility deadlines and other specifics that may influence particular cases vary. Therefore, it is advisable to reach out to your county assessor’s office for aid. The office has personnel stationed at both the Westside (UCLA Research Park West, 10850 W. Pico Blvd., Los Angeles) and Eastside (Pasadena City College Community Education Center, 3035 E. Foothill Blvd., Pasadena) disaster centers.
Assessor Jeff Prang is encouraging affected homeowners to notify about property damage, and his office is providing immediate relief to all eligible property owners. He stated his determination to act on this.
“It would be beneficial if they would complete a form so we specifically know who they are and how to contact them, but we would gladly reassess their properties whether they request us or not. I aim to do this,” Prang remarked.
Prang also cautioned homeowners to beware of scams by third parties offering additional property tax relief for a fee.
“There is no action that a company can perform that would yield different results than if you were to handle it yourself,” Prang emphasized. “There’s no justification for individuals to incur expenses.”
Further resources are accessible online through the rating agency and the state board of equalization websites.