Property owners in Huntington Beach pay a base property tax of 1% of assessed value, with voter-approved add-ons bringing the effective rate to roughly 1.1% to 1.2%. The combined sales tax rate in the city is 7.75%. On top of those, the city charges a 5% utility user tax on electricity, gas, and water, a 4.9% rate on telecommunications and video services, and a transient occupancy tax on short lodging stays. The Huntington Beach tax rate you actually pay depends on which of these apply to you.
Property Tax
California’s Proposition 13 caps the base property tax rate at 1% of assessed value and limits growth in that assessed value to 2% per year, unless the property changes ownership or is newly built, at which point the county reassesses it at current market value.1California State Board of Equalization. California Property Tax An Overview A home held for many years often has an assessed value well below current market, and its tax bill reflects that history rather than what a new buyer would pay for the same house.
The 1% base is levied by the county and distributed among local agencies, school districts, and community college districts under formulas in California Revenue and Taxation Code Section 93.2California Legislative Information. California Code, Revenue and Taxation Code – RTC 93 The Orange County Treasurer-Tax Collector bills and collects for all Huntington Beach parcels.
What Pushes the Rate Above 1%
On top of the base rate, property owners pay voter-approved bonded indebtedness. In Huntington Beach that typically includes school and community college district bonds plus a retirement property tax override, originally authorized in the city charter to help fund pension obligations for city employees. Measure Z, a 2012 ballot measure to repeal the retirement override, failed, and the city council has capped the rate at its existing level.3Ballotpedia. Repeal of the Huntington Beach Retirement Fund Property Tax Levy, Measure Z (November 2012) Combined, these bring the effective rate for most properties to somewhere between 1.1% and 1.2%, varying by tax rate area.
Some newer developments carry Mello-Roos special taxes as well. These are flat-dollar assessments funding infrastructure for specific community facilities districts, and they show up as separate line items on the bill. Not every parcel in Huntington Beach falls within a Mello-Roos district, so buyers looking at newer homes should check before making an offer.
Due Dates and Late Penalties
Orange County property tax is paid in two installments. The first is due November 1 and delinquent after December 10. The second is due February 1 and delinquent after April 10. A 10% penalty applies to any installment paid late, and the second installment also carries a $10 administrative cost. After June 30, unpaid taxes begin accruing a 1.5% monthly penalty plus a redemption fee, and continued nonpayment can lead to a tax lien.
Sales Tax
Retail sales of tangible goods in Huntington Beach are taxed at 7.75%.4California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates The statewide base is 7.25%, of which 1.00% goes to the city of Huntington Beach for general operations and 0.25% goes to the county transportation fund.5California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate The remaining 0.50% comes from Measure M2, an Orange County half-cent sales tax funding transportation improvements through 2041.6Orange County Transportation Authority. Renewed Measure M (2011-2041)
Most tangible goods are taxable. Services generally are not, unless they involve creating or altering physical property. Unprepared groceries and prescription medications are exempt. Purchases from out-of-state retailers are typically taxed at the same 7.75% rate, since sellers exceeding $500,000 in California sales are required to collect it.7California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California
Utility User Tax
Huntington Beach charges a 5% utility user tax on electricity, gas, and water service under Municipal Code Chapter 3.36.8City of Huntington Beach. City of Huntington Beach Code – Chapter 3.36 Utilities Tax The utility provider adds it to your monthly bill and remits it to the city, so there is nothing separate to file.
Telecommunications and video services are taxed at 4.9% under a later ordinance, Chapter 3.38.9UUTinfo. City of Huntington Beach – UUT That rate applies to landline and wireless phone charges and to cable and video services from taxable providers. Phone bills also include a separate 3% federal excise tax on local telephone service under Internal Revenue Code Section 4251.10Office of the Law Revision Counsel. 26 U.S. Code 4251 – Imposition of Tax Between local and federal layers, phone customers in Huntington Beach pay close to 8% in tax on their monthly service before any state surcharges.
Transient Occupancy Tax
Guests at hotels, motels, and short-term rentals in Huntington Beach pay a transient occupancy tax on the rent charged. Under Municipal Code Chapter 3.28, the rate is set equal to the current combined state and local use tax rate, with the city council declaring the applicable percentage by resolution.11City of Huntington Beach. Huntington Beach Municipal Code Chapter 3.28 Uniform Transient Occupancy Tax The tax applies to stays of 30 consecutive days or less; a stay longer than 30 consecutive days is not transient and is exempt.
The lodging operator collects the tax and remits it to the city. Short-term rental enforcement is strict: permit violations can bring fines of $1,000 per day per violation, and three violations within 12 months can lead to permit revocation.12City of Huntington Beach. Hotel and Motel TOT and TBID Information Revenue flows to the city’s general fund.
Business License Tax
Any business operating in Huntington Beach needs a city business license. The base fee is $75 per year for businesses with up to three employees. Above that, per-employee cost scales down: $4 each for 4 to 12 employees, $3 each for 13 to 52, and $2 each above 52.13City of Huntington Beach. Huntington Beach Municipal Code Chapter 5.16 Rates
Some business types pay flat fees instead. General contractors pay $142.50 per year and specialty contractors pay $90. Short-term operations such as carnival vendors and temporary stands pay daily rates.
Federal Tax Rules That Hit Huntington Beach Homeowners
Local rates are only part of the picture. Given how much Huntington Beach property is worth, a few federal rules make a real difference to the bottom line.
The SALT Deduction Cap
If you itemize, you can deduct state and local taxes, including property tax and either state income tax or sales tax. Under the One Big Beautiful Bill Act, the SALT cap for 2026 is $40,400 for all filing statuses other than married filing separately, which is capped at $20,200. The cap rises 1% annually through 2029. With property tax alone often running $10,000 to $15,000 on a moderately priced Huntington Beach home, many homeowners will hit the cap once California income tax is added in.
Mortgage Interest Deduction
Itemizers can deduct interest on up to $750,000 of mortgage debt, or $375,000 if married filing separately. That limit, first set by the 2017 tax law, is now permanent.14Internal Revenue Service. Publication 936 (2025), Home Mortgage Interest Deduction Mortgages taken out before December 16, 2017 keep the older $1 million limit. Buyers financing typical Huntington Beach homes at current price levels will often exceed the $750,000 cap and lose the deduction on interest above it.
Capital Gains When You Sell
Selling a primary residence, you can exclude up to $250,000 of gain from federal capital gains tax if you’re single, or $500,000 if married filing jointly. You must have owned the home and used it as your primary residence for at least two of the five years before the sale.15Office of the Law Revision Counsel. 26 U.S. Code 121 – Exclusion of Gain from Sale of Principal Residence Gain above the exclusion is taxed at long-term capital gains rates, which for 2026 are 0% for taxable income up to $49,450 single or $98,900 joint, 15% up to $545,500 single or $613,700 joint, and 20% above those thresholds.16Tax Foundation. 2026 Tax Brackets and Federal Income Tax Rates Long-term Huntington Beach homeowners often find their gain exceeds the exclusion even as a couple, so the timing of a sale and careful attention to the ownership-and-use test can matter more than the local rates in this article combined.