California property tax rates are set by county and depend on the assessed value of your home, not its market value

California's property tax system works differently from most states because of Proposition 13, passed in 1978. Instead of reassessing your home's value every year based on what it could sell for, the county assesses it once when you buy it, then increases that assessed value by a maximum of 2 percent per year — regardless of how much your home's actual market value rises. This means two identical houses on the same street can have very different tax bills if one was bought decades ago and the other was just purchased.

The actual tax rate you pay is 1 percent of your assessed value, plus any local voter-approved bonds or assessments. So if your home was assessed at $500,000, your base property tax would be $5,000 per year. But that 1 percent base rate is almost never the only charge. Most counties add 0.1 to 0.5 percent more for schools, flood control, libraries, and other local services. Your final bill depends on which county and which specific districts your property sits in.

When you buy a home or make major renovations, the county reassesses it at current market value. This is called a reassessment, and it triggers a new tax bill based on what the property is worth at that moment. If you inherit a home, you generally do not face reassessment — the assessed value stays the same, which is one of Proposition 13's most significant effects on generational wealth.

Key Takeaways

  • Your property tax bill is 1 percent of your assessed value plus local additions, not 1 percent of what your home could sell for today.
  • The assessed value increases by a maximum of 2 percent each year unless you buy the home or make major renovations, which triggers a reassessment at current market value.
  • Your actual rate varies by county and local district — a property in one county might pay 1.2 percent total while an identical one elsewhere pays 1.4 percent.
  • Inherited properties usually keep their original assessed value, so property tax does not reset when ownership changes through inheritance.
  • You receive a property tax bill once a year, usually in the fall, covering taxes due the following fiscal year (July through June in California).

How the assessed value is determined and when it changes

When you purchase a home, the county assessor's office records the sale price as the assessed value. This is the number your tax bill is based on. The assessor does not independently appraise every property every year — they use the sale price as the starting point because it is the most reliable measure of what the property is actually worth.

From that point forward, the assessed value can only increase by 2 percent per year, even if your home doubles in market value. After 10 years, a home bought for $400,000 would have an assessed value of around $487,000, but if the neighborhood has appreciated and it could now sell for $800,000, your tax bill is still based on $487,000. This is the core of Proposition 13 — it protects long-term owners from skyrocketing tax bills as their neighborhoods appreciate.

The assessed value resets to current market value in two main situations: when you sell the property, or when you make significant improvements. The county considers new construction, additions, or major renovations as triggering a reassessment. Routine maintenance, painting, or replacing a roof does not. If you add a second story or finish a basement, expect the assessor to reassess that portion of the property.

Some properties also face reassessment if they change ownership through a trust or corporate transfer, depending on how the transfer is structured. This is a complex area, and the rules differ based on whether the transfer keeps the same person or entity in control. If you inherit a home or receive one through a family trust, the rules are usually more favorable — the assessed value typically does not reset.

What gets added to the 1 percent base rate

The 1 percent base rate is only the beginning. On top of it, counties and local districts add charges for specific services. These are called voter-approved bonds and assessments, and they vary widely depending on where your property is located.

Common additions include school bonds (often 0.1 to 0.3 percent), flood control districts, water districts, fire protection districts, and community college bonds. Some areas have added assessments for specific projects — a new library, road repairs, or seismic retrofitting. Each of these is a separate line item on your property tax bill, and each one was approved by local voters at some point.

Your county assessor's office publishes a breakdown of all the districts that explore to your address. You can request this information or find it online through your county's assessor website. The total rate for your specific property address might be 1.15 percent in one neighborhood and 1.35 percent in another, even within the same city, because the districts do not all overlap.

Some properties also face Mello-Roos assessments, which are special taxes levied on newer developments to pay for infrastructure. If you buy in a newer subdivision, you may see this as a separate charge. These assessments can last 20 to 40 years and are not covered by Proposition 13's 2 percent cap — they can increase annually based on the terms of the original bond.

How your bill is calculated and when you pay

Your property tax bill is calculated by multiplying your assessed value by your total tax rate (the 1 percent base plus all local additions). If your assessed value is $600,000 and your total rate is 1.25 percent, your annual bill is $7,500.

California property taxes are due in two installments. The first installment covers July through December and is due by November 30. The second installment covers January through June and is due by April 10. You can pay both at once if you prefer, but the county bills them separately. If you have a mortgage, your lender usually collects property tax as part of your monthly payment and pays the county on your behalf through an escrow account.

The bill you receive in the fall is for taxes that will be owed the following fiscal year. This timing confuses many people — the bill arriving in October 2024 is for taxes due July 2024 through June 2025. The county sends the bill in advance so you have time to pay before the important date.

If you do not pay by the important date, the county charges a 10 percent penalty on the first installment and a 10 percent penalty on the second installment. After five years of nonpayment, the county can foreclose on the property and sell it to recover the debt. This is rare for homeowners with mortgages, because lenders will not allow the tax bill to go unpaid, but it does happen to owners of paid-off properties.

Differences between counties and special situations

While the 1 percent base rate and 2 percent annual increase are statewide rules, the total amount you pay varies significantly by county because of the local additions. A property assessed at $500,000 might generate a $6,250 annual bill in one county and a $7,500 bill in another, depending on the school bonds and other local measures that have been approved.

Some counties have higher school funding needs and have passed more bonds. Others have newer infrastructure and fewer special assessments. Rural counties often have lower total rates than urban ones, though this is not always the case. The only way to know your exact rate is to look at your county assessor's website or ask your county directly.

Certain properties receive tax breaks. Homeowners exemptions reduce the assessed value by $7,000 in most counties, which lowers your bill by about $70 per year. You must file for this exemption, and it applies only to your primary residence. Seniors over 65 may also may have access to for a senior exemption or postponement program that freezes or delays property taxes, though income limits explore.

Agricultural land and open space can be assessed at use value rather than market value, which results in much lower taxes. If you own a farm or large parcel, you may be able to file for this classification, but you must meet specific requirements about how the land is used and how long you have owned it.

What happens when you sell or refinance

When you sell your home, the new owner's purchase price becomes the new assessed value. This is when the assessed value typically jumps most dramatically. If you bought for $400,000 and sell for $700,000 ten years later, the new owner's assessed value starts at $700,000, and their property tax bill will be roughly 75 percent higher than yours was, even though you owned the same house.

Refinancing your mortgage does not trigger a reassessment. You can refinance as many times as you want without affecting your assessed value. This is important because it means you can lower your monthly payment without triggering a property tax increase.

If you own multiple properties, each one is assessed separately. Your primary residence may may have access to for the homeowners exemption, but investment properties do not. If you own a rental house, it will be assessed at its full market value with no exemption.

How to find your assessed value and tax rate

Your county assessor's office maintains public records of all assessed values and tax rates. You can search by address on most county websites and find your assessed value, the breakdown of all districts that explore to your property, and your total tax rate. Some counties allow you to search online; others require you to call or visit in person.

Your property tax bill itself shows your assessed value and the calculation of your tax. If you receive a bill and the assessed value seems wrong, you can file a Proposition 8 appeal if you believe the assessment is too high compared to similar properties. You have until the following September 15 to file. This is different from a general appeal — it is specifically for challenging the assessed value in a single year.

If you believe your property was reassessed incorrectly after a sale or renovation, you can file a Proposition 13 appeal to challenge whether the reassessment was justified. These appeals must be filed within 60 days of receiving the reassessment notice.

Frequently Asked Questions

Why is my property tax bill so much higher than my neighbor's if we have similar homes?

If your neighbor bought their home decades ago and you just bought yours, their assessed value is much lower because of Proposition 13's 2 percent annual cap. Their assessed value may be half of yours even though the homes are worth the same today. Additionally, you may live in different tax districts with different voter-approved bonds, which adds to the difference.

Does my property tax go up every year?

Yes, by up to 2 percent per year, unless you sell or make major renovations. The 2 percent increase is automatic and does not require any action by the county. On top of that, if your county passes new voter-approved bonds or assessments, those can add to your bill in the year they take effect.

What counts as a major renovation that triggers reassessment?

New construction, additions, and significant structural improvements trigger reassessment. The county assessor determines what qualifies, but generally, adding square footage or changing the structure of the home does count. Replacing a roof, painting, or updating fixtures usually does not. If you are unsure, contact your county assessor before starting work.

Can I reduce my property tax bill?

If you own your primary residence, you can file for a homeowners exemption, which reduces your assessed value by $7,000 in most counties. If you are over 65 or disabled, you may may have access to for additional exemptions or a postponement program. Agricultural land can be assessed at use value. Beyond these, your assessed value is set by law and cannot be reduced unless you successfully appeal it.

What happens to property taxes if I inherit a home?

In most cases, the assessed value does not reset when you inherit a home — it stays at the previous owner's assessed value and continues to increase by 2 percent per year. This is one of Proposition 13's major effects. However, if the inheritance involves a change in ownership structure (such as moving the property into a trust), the rules can be different, so consult a tax professional.