Santa Clara County property values grow 4.5% with San Jose leading tax base

Santa Clara County’s property tax base increased by 4.5% this year, according to Assessor Neysa Fligor, marking a growth rate slightly faster than the previous year but lower than most of the past decade, San Jose Inside reported.

The county’s total assessed property values surpassed three-quarters of a trillion dollars, ranking it as California’s fourth most valuable real estate market, behind Los Angeles, Orange, and San Diego counties. Notably, Santa Clara’s property values are more than double those of San Francisco.

Residential property sales were the strongest driver of the county’s value growth, accounting for 49% of the increase. This was due to residential reassessments following property transactions, which outpaced commercial property growth, new construction, and inflation adjustments under Proposition 13.

Among cities in the county, Sunnyvale led with a 7.2% blended growth rate driven by commercial property assessments, while Los Altos showed the strongest residential market growth at 6.4%. San Jose’s property values grew by 4.5%, contributing more than one-third of the county’s $280 billion tax base.

Fligor also noted that growth in data centers contributed to property tax revenues both directly and indirectly by supporting local industries and increasing residential property values.

The annual report was presented at an event in San Pedro Square, marking Assessor Fligor’s first year in office following the retirement of her predecessor after three decades.