San Diego’s Best-Kept Secret: How a Historic Tax Break Can Save You Thousands
What if I told you there was a little-known tax break that could save you tens of thousands of dollars a year on your property taxes? It sounds too good to be true, but for the owners of over 2,100 historic properties in San Diego County, it’s a reality. A recent investigation by the San Diego Union-Tribune has shed light on the Mills Act, a powerful but often overlooked program that provides massive tax savings to the owners of historic homes .
The Mills Act is a state law that allows cities and counties to enter into contracts with the owners of historically designated properties. In exchange for a commitment to maintain and preserve the property, the owner receives a significant reduction in their property taxes. The savings can be dramatic, ranging from 20% to 70%, with the average Mills Act property in San Diego seeing a 49% reduction in their tax bill. For a home with a $20,000 annual property tax bill, that could mean a savings of nearly $10,000 a year.
In total, the Mills Act saves San Diego County property owners an estimated $29 million a year. The program includes some of the county’s most iconic buildings, from the John D. Spreckels Building in downtown San Diego to the historic homes of Coronado and La Jolla. But it’s not just for mansions and landmarks. Many of the homes in San Diego’s most desirable historic neighborhoods, like Mission Hills, North Park, and Golden Hill, are also eligible for the Mills Act.
For buyers, this creates an incredible opportunity. When you purchase a home that is already under a Mills Act contract, that contract can transfer to you, giving you the benefit of those lower property taxes. This can make owning a historic home far more affordable than you might think, and it’s a factor that is often overlooked in the homebuying process.
Of course, the Mills Act is not without its critics. Some argue that it is a subsidy for the wealthy, while others point to the need for reform to ensure that the program is being used as intended. The San Diego City Council is expected to consider changes to the Mills Act program this summer, which could impact how it is administered in the future.
But for now, the Mills Act remains one of the most powerful tools available to buyers and owners of historic homes in San Diego. If you’ve ever dreamed of owning a piece of San Diego’s history, the Mills Act could be the key to making that dream a reality. Let’s talk about how you can take advantage of this incredible program.
Based on reporting from the San Diego Union-Tribune, read the full article here: https://www.sandiegouniontribune.com/2026/03/22/this-little-publicized-tax-break-saves-owners-of-historic-properties-tens-of-millions-a-year-in-san-diego-county/