$10K Tax Proposal Hits Second Homes in San Diego

What if simply leaving your second home empty could cost you up to $10,000 a year? That’s exactly what San Diego is considering right now. A new proposal could introduce a tax on vacant homes. While it’s not in effect yet, it could directly impact how second homes and investment properties are owned, used, and even valued going forward. If you own a second home, use a property seasonally, or are thinking about buying one, this is something you want to stay ahead of.

Let’s break down what’s actually being proposed and what it could mean for you.

Why this proposal is getting attention. San Diego continues to face a housing shortage, and city leaders are seeking ways to increase the available inventory. One idea is to encourage homeowners to put underused properties back into circulation, either by renting them or selling them. The vacant home tax is being considered to push that change.

What the proposal actually includes. The measure targets second homes that remain vacant for more than six months per year. Primary residences and actively rented properties would not be affected. If approved by voters, the tax would start at $8,000 annually in 2027 and increase to $10,000 in 2028. While it’s still in the proposal stage, the potential cost is significant enough that many homeowners are already paying attention.

Who could be affected most. This proposal primarily affects second-home owners, vacation property owners, and investors who don’t consistently rent their properties. If you use your home part of the year or leave it vacant for extended periods, this could apply to you. It also matters to buyers considering a second home in San Diego, as it would directly affect long-term ownership costs.

What supporters and critics are saying. Supporters believe this policy could increase housing availability by motivating owners to make better use of their properties. Critics question how the city would enforce it and whether it will meaningfully address the housing shortage. There are also concerns about adding financial pressure to homeowners without guaranteeing real results.

How this could impact your strategy. If this measure passes, it could shift how second homes are used across San Diego. Some owners may decide to rent their properties more consistently to avoid the tax, while others may reconsider holding onto a second home altogether. For buyers and investors, this becomes another factor to weigh when deciding whether a property still makes financial sense.

What to do next. Right now, this proposal is expected to appear on the ballot this fall, so nothing is finalized. But this is exactly the kind of policy that can quietly shape the market over time. Staying informed now gives you more control over your options later.

If you want to talk through how this could affect your situation, call or text me at (619) 977-8364 or email team@maxfolkers.com. I’m happy to help you think through your next move. The bottom line is simple: the way you use your property may soon matter just as much as the property itself.