How much will my property taxes increase when I build a home addition or accessory dwelling in Livermore?

Property taxes increase when you add an ADU or an addition to your home in California

New Avenue created a detached backyard studio for a family in Livermore, California. The homeowners needed a space for their parents to live in.

This is a 264-square-foot, one-room, one-bathroom space with no kitchen.

Before the addition of the accessory unit, this property was assessed at approximately $526,000 with an annual tax payment of around $6,200.

Any time you make improvements of this magnitude to your home, your property taxes will increase. In California, we usually see a tax increase equal to one-half of one percent of the total cost of the ADU. That means a project similar to this one would generally result in an increase in property taxes of $822.66 per year.

For this project, however, there was only an 8.5% increase in property taxes. The family paid an additional $527 in taxes annually once the addition was built.

By providing a home for their parents that was on their own property, these homeowners saved the family at least $2,000 per month. That makes the monthly tax increase of $43.92 well worth the investment.  

Note that the main home is not reassessed when an ADU or addition is added.

New Avenue builds custom accessory dwellings that can be used by the owners or rented out as long-term homes. The total cost of this project was $164,532.00. That includes custom design, engineering, permits, red tape, all site work, and construction. We guarantee we can deliver on budget with total transparency and a professional standard you can trust.

Click the button below to schedule your free call. A local design/build expert will contact you to answer all of your questions.