By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
Housing is comparably expensive, so the financial case for this move rests elsewhere — and mostly on Proposition 13. California caps annual increases in assessed value and reassesses only when a property changes hands, so a buyer's assessment is set at their purchase price and then largely stops climbing with the market. That's structurally different from Nassau's reassessment cycle and it compounds over years. Two counterweights: a supplemental tax bill arrives after purchase and surprises nearly every new buyer, and insurance in wildfire-exposed areas has become a genuine obstacle rather than a line item.
Start With the Long Island Sale
At three thousand miles this matters more than at any other destination in the series. The Long Island transaction sets the budget and the timeline, and coordinating simultaneous closings across the country is impractical.
Before touring anything in Los Angeles, know what the current home nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation, and carrying costs. The full breakdown of what a Long Island sale costs covers each line.
A seller who establishes California residency before the Long Island closing becomes a New York nonresident for that transaction, triggering Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. A prepayment rather than an additional tax, refundable where the real figure comes in lower, but it reduces the wire.
For a long-held home, the exclusion covers $250,000 single and $500,000 filing jointly, and improvement records reduce the taxable figure substantially. The full treatment of how gain is calculated covers the mechanics.
Sell first. The double move is a real cost and it's smaller than carrying two properties across the country.
Proposition 13 Is the Actual Financial Story
The original said California property taxes are lower than Nassau's. True, and the reason is what a buyer should understand.
California assesses property at its value when acquired, then caps annual increases in assessed value at a limited rate. A property is generally reassessed to market value only when it changes ownership or undergoes new construction.
The consequence for someone arriving from Nassau County is significant. In New York, a county reassessment can raise a homeowner's taxable value regardless of whether they've done anything — which is why grievance filing is a live practice on Long Island. In California, a buyer's assessment is set at their purchase price and then largely stops tracking the market.
Over a long hold, that compounds. Two neighbors in identical houses can pay very different taxes depending on when each bought, and a household planning to stay fifteen or twenty years benefits substantially.
The catch nearly everyone hits: the supplemental tax bill. When a property changes hands, the county reassesses it to the new value and issues a supplemental bill covering the difference between the prior owner's assessment and the new one, prorated from the purchase date. It arrives after closing, it can be substantial, and new buyers routinely don't budget for it because it isn't part of the regular billing cycle.
And a misconception worth clearing. California allows certain homeowners — including those 55 and over — to transfer a base year value to a replacement property. That transfer applies to a California assessment moving to another California property. A New York seller has no California base year value to bring with them, so it doesn't help on the purchase. It may matter later if they move again within the state.
Rules, rates, and eligibility change. Confirm with a California professional and the county assessor.
Insurance Is the Harder Problem
The original mentioned earthquake safety and insurance in one tip. Earthquake coverage is a known consideration. Wildfire exposure is the current obstacle, and it's a different order of problem.
In fire-exposed areas, some carriers have limited or withdrawn from writing new policies, which means availability rather than price can be the binding constraint. The California FAIR Plan exists as a last-resort option, and coverage through it is typically narrower and often paired with a supplemental policy.
This affects financeability. A lender will not close without bindable coverage in place. A buyer who cannot obtain a policy on a specific property cannot buy it, regardless of price or willingness.
The practical instruction is the same one that applies to Port Washington waterfront: obtain actual insurance quotes on specific addresses before making an offer, not after. Two similarly priced homes in different fire-hazard zones can differ enormously in carrying cost and in whether coverage is available at all.
Earthquake coverage is separate again, generally excluded from standard policies and purchased through a distinct program. It's optional in most cases, and worth pricing rather than assuming.
Buying Works Differently
California is an escrow state. A neutral escrow company holds funds and documents and coordinates the closing, with title insurance handled alongside. No attorney is necessarily involved on either side.
For a New York seller accustomed to counsel drafting the contract, negotiating on their behalf, and running the closing, that's a real adjustment. A buyer who wants legal review retains an attorney separately and pays for it. Worth deciding before the transaction starts.
California also uses an extensive statutory disclosure regime — a Transfer Disclosure Statement plus natural hazard disclosures covering flood, fire, and seismic zones, among others. A buyer receives considerably more paperwork than in New York, which is informative rather than burdensome once expected.
Mello-Roos is worth asking about specifically. In newer developments, a Community Facilities District can levy a special assessment on top of ordinary property taxes to finance infrastructure — the California analogue to a Texas MUD. It isn't visible in a listing price, it varies between developments, and it can be substantial.
The Cost Picture Beyond Housing
Both regions are expensive, and the composition differs.
California income tax is among the highest in the nation, with a progressive structure that reaches high rates at upper income levels. For a household with substantial earned income, that offsets part of the property tax advantage — and unlike property tax, it doesn't shrink because you bought a smaller house.
Utilities, fuel, and everyday costs generally run higher in California.
The car is not optional across most of the metro. Transit exists and its coverage is limited relative to the region's size, commute times vary substantially, and proximity to work matters more than in most markets. Test the commute at the hour it would actually happen.
Climate is a genuine adjustment in both directions — no snow, and a dry season with real fire risk.
A Worked Example
Consider a composite case — a Nassau County household relocating for a Los Angeles-area position, selling a colonial that comped near $1,180,000.
Two things reshaped their search. Their California agent explained Proposition 13, which reframed how they thought about a long hold — the assessment set at purchase and then capped was worth more over fifteen years than the price difference between two properties they were weighing.
Insurance was the harder discovery. One property they liked sat in a higher fire-hazard area, and obtaining quotes took three weeks and produced only a FAIR Plan option with a supplemental policy. The combined cost, and the narrowness of the coverage, moved them to a different neighborhood.
They also learned about the supplemental tax bill in advance rather than receiving it as a surprise months after closing.
On the New York side, they sold first — necessary at that distance — and their attorney's early title review turned up an old undischarged mortgage, cleared in four weeks before listing.
Where to Start
Build the net-proceeds model on the Long Island home before touring anything, and plan to sell first. Call the town or village building department about permits. Engage a New York real estate attorney early and talk to a CPA about IT-2663 and capital gains before setting a closing date.
On the California side: obtain insurance quotes on specific addresses before offering, since availability can be the binding constraint. Ask about Mello-Roos. Budget for the supplemental tax bill. Ask a California professional how Proposition 13 will apply to your purchase, and don't assume base year transfer rules help a first-time California buyer. And test the commute.
Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value, and more market and process coverage lives in Local Insights.
The Honest Bottom Line
Housing costs are comparable, so this move isn't about affordability the way a move to the Carolinas or Texas is. The financial argument rests on Proposition 13 and on whether the household plans to stay long enough for a capped assessment to compound — which for a fifteen or twenty year hold is a real advantage over Nassau's reassessment cycle.
The counterweight is insurance. In fire-exposed areas, whether a policy can be obtained at all is now a live question, and it determines whether a property is financeable. That's a check to run before making an offer rather than during the inspection period.
For anyone working through what their Long Island home would net before any of the California decisions get made, that conversation is available whenever the timing suits.
This is general information, not legal, tax, insurance, or financial advice. California property tax rules, assessment provisions, special assessments, and insurance availability vary by location and change over time. Confirm current specifics with a California attorney or accountant, the county assessor, and a licensed insurance professional, and confirm New York specifics with a licensed New York real estate attorney and a CPA.
FAQs
Why are California property taxes lower than Nassau County's?
Proposition 13 is the reason. California assesses property at its value when acquired and caps annual increases in assessed value, reassessing to market only when a property changes ownership or undergoes new construction. So a buyer's assessment is set at their purchase price and then largely stops tracking the market — structurally different from Nassau County, where a reassessment can raise taxable value regardless of what the owner has done. Over a long hold that compounds, which is why two neighbors in identical houses can pay very different amounts.
What is a supplemental tax bill in California?
A bill issued after a property changes hands, covering the difference between the prior owner's assessed value and the new assessment, prorated from the purchase date. It arrives after closing, separately from the regular billing cycle, and it can be substantial. New buyers routinely don't budget for it because nothing in the ordinary process flags it. Ask a California professional what to expect for a specific purchase price so it's planned for rather than discovered.
Can I transfer my property tax base to California?
No, and this is a common misconception. California allows certain homeowners, including those 55 and over, to transfer a base year value to a replacement property — but that applies to a California assessment moving to another California property. A New York seller has no California base year value to bring, so it doesn't help on the purchase. It may matter later if the household moves again within the state. Rules and eligibility change, so confirm with a California professional.
How much of a problem is wildfire insurance in Los Angeles?
Enough that availability, not price, can be the binding constraint. In fire-exposed areas some carriers have limited or withdrawn from writing new policies, and the California FAIR Plan exists as a last-resort option with typically narrower coverage, often paired with a supplemental policy. This affects financeability directly — a lender won't close without bindable coverage, so a buyer who can't obtain a policy can't buy the property. Get actual quotes on specific addresses before making an offer.
Does California require an attorney to buy a home?
No. California is an escrow state — a neutral escrow company holds funds and documents and coordinates the closing, with title insurance handled alongside, and no attorney is necessarily involved on either side. For a New York seller accustomed to counsel drafting the contract and running the closing, that's a real adjustment. A buyer who wants legal review retains an attorney separately. California does use an extensive statutory disclosure regime, including natural hazard disclosures, so a buyer receives considerably more paperwork than in New York.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com
