Rate Breakdown

Property taxes in Merced County are calculated by multiplying the assessed value (minus exemptions) by the total local millage rate.

How Property Tax Works in Merced County

In Merced County, property taxes are levied on the assessed value of real‑estate as determined by the County Assessor’s Office. The assessment is rooted in Proposition 13 (1978), which limits the maximum annual increase of a property’s assessed value to 2 % unless there is a change in ownership or new construction. The assessor takes the property's market value on the acquisition date (or the value at the time of new construction) and then applies the 2 % cap each subsequent year.

Once the assessed value is set, the tax bill is calculated by applying the total millage rate. One mill represents one‑tenth of a cent, or $1 of tax per $1,000 of assessed value. Merced County’s base rate is 1 % (10 mills) for general fund purposes, and additional votes—school districts, city services, water districts, and special‑purpose districts—add their own millage. As of the 2025‑2026 fiscal year, the combined average millage rate in Merced County hovers around 13 mills (≈1.3 %). The exact rate you pay depends on the specific districts that serve your property.

Available Exemptions

California offers several exemptions that can lower the taxable portion of your home’s assessed value. Eligibility is determined by state law, and qualifying owners must file the appropriate claim with the County Assessor.

• Homestead Exemption – If the property is your principal residence, you may qualify for a $7,000 reduction in assessed value (approximately $70 per $1,000 of assessed value).
• Senior Citizen Exemption – Residents age 65 or older may receive an additional $7,000 exemption, but only if their total household income does not exceed the state‑set limit (adjusted annually).
• Disability Exemption – Qualified disabled persons (including those with visual, hearing, or mobility impairments) may obtain a $7,000 exemption, subject to income guidelines similar to the senior exemption.
• Veteran Exemption – Veterans who are totally and permanently disabled due to service‑connected conditions receive a $7,000 exemption. Surviving spouses of such veterans are also eligible.

Exemptions are **not** automatically applied; you must submit the state‑provided claim forms (usually by March 1) and provide supporting documentation. Once approved, the exemption reduces the taxable assessed value for the remainder of your ownership, unless you sell or no longer meet the criteria.

Payment Schedule & Deadlines

Merced County follows the statewide two‑installment system for property taxes.

• First installment – Due November 1, payable until December 10. Late payments after December 10 incur a 10 % penalty plus interest.
• Second installment – Due February 1, payable until April 10. The same 10 % penalty and accrued interest apply after the April 10 deadline.

If you pay the full amount by the November 1 deadline, you avoid all penalties and interest. Some owners choose to set up automatic recurring payments through the county’s online portal, which can help ensure timely delivery. Non‑payment can result in a tax lien, possible tax foreclosure, and a negative impact on credit.

Appealing Your Assessment

If you believe your property’s assessed value is inaccurate, you have the right to appeal. The process in Merced County consists of the following steps:

• File a Protest – Submit a written protest to the Merced County Assessment Appeals Board (AAB) online or by mail by July 2 of the tax year in question. Include a copy of your notice of assessment and any supporting evidence (comparable sales, independent appraisals, etc.).
• Pre‑Hearing Conference – The AAB may schedule a conference to discuss your protest informally. This is an opportunity to negotiate a resolution before a formal hearing.
• Formal Hearing – If the dispute is not settled, a hearing is held before the board. You may present witnesses, documents, and expert testimony. The board will issue a written decision, typically within 30 days of the hearing.
• Further Review – If you disagree with the AAB’s decision, you can appeal to the California State Board of Equalization and, ultimately, to the superior court.

Remember to keep all deadlines and documentation organized—missed dates can forfeit your right to challenge the assessment. For detailed forms and filing instructions, visit the Merced County AAB website or contact the Assessor’s Office directly.