California property tax is a local tax on real estate, set by your county assessor and collected by your county treasurer

California property tax is not a state tax — it is a county tax. Your county assessor determines the value of your property, and your county treasurer collects the payment. The tax rate varies by county and by what other local districts (schools, fire, water) serve your address. Most California property owners pay between 0.76% and 1.25% of their home's assessed value each year, though the rate can be higher in some counties depending on local bond measures and special assessments.

The key to understanding California property tax is understanding Proposition 13, a 1978 law that fundamentally changed how the state taxes property. Under Prop 13, your property is not reassessed every year at current market value. Instead, it is assessed at the price you paid when you bought it, and the assessed value can increase by no more than 2% per year — even if your home's market value rises much faster. This means two identical houses on the same street can have very different tax bills if their owners bought them in different years.

Key Takeaways

  • Your county assessor sets the assessed value of your property, usually based on the purchase price, not current market value.
  • Under Proposition 13, your assessed value can increase by a maximum of 2% per year, regardless of how much your home's market value rises.
  • Your property is reassessed at current market value only when it is sold or when a change of ownership occurs.
  • Your tax bill includes the county property tax rate plus any local district taxes (school, fire, water, flood control) that serve your address.
  • Property tax bills are due in two installments: the first is usually due November 1, and the second is usually due February 1.

How the assessed value is determined

When you buy a home in California, the county assessor records the sale price as the initial assessed value. This becomes your base. Each year after that, the assessor can increase the assessed value by up to 2%, but no more. So if you bought your home for $500,000, the next year it might be assessed at $510,000 (a 2% increase), then $520,200 the following year, and so on.

The only time your property is reassessed at its current market value is when ownership changes. If you sell your home for $750,000, the new owner's assessed value starts at $750,000. If you inherited the property or received it as a gift, different rules may explore — some transfers between family members are exempt from reassessment under Prop 13, though you will need to file a claim with the assessor to receive this exemption.

If you believe your assessed value is wrong — for example, if the assessor made an error about the size of your home or the condition of the property — you can file an appeal with your county assessor's office. The important date to file is usually 30 days after you receive your assessment notice, though some counties allow longer periods. You do not need a lawyer to file an appeal; you can do it yourself by submitting a form to the assessor.

What is included in your property tax bill

Your property tax bill is not a single number. It is made up of several layers. The base is the county property tax rate, which in most California counties is 1% of the assessed value. On top of that are taxes for local districts — your school district, fire protection district, water district, flood control district, and any other special districts that serve your property. These add anywhere from 0.1% to 0.5% or more to your bill, depending on where you live.

Your county treasurer's office sends you a bill that shows the total amount due, broken down by which entity is collecting each portion. You pay one bill to the county treasurer, and they distribute the money to each district. Some counties also add voter-approved bond measures to the tax bill — these are temporary taxes meant to fund specific projects like school construction or infrastructure repair. These appear as separate line items on your bill and expire on a set date.

When property tax bills are due and how to pay

California property tax is due in two installments. The first installment is usually due November 1 and becomes delinquent if unpaid by December 10. The second installment is usually due February 1 and becomes delinquent if unpaid by April 10. You can pay both installments at once if you prefer, and many people do.

You can pay your property tax bill online through your county treasurer's website, by mail, in person at the treasurer's office, or by phone. Some counties allow automatic payments. If you miss a payment important date, you will owe a penalty plus interest. If you do not pay for long enough, the county can place a lien on your property or eventually sell it at a tax sale, though this process takes years and the county must follow specific legal procedures.

Homeowner exemptions and other reductions

California offers a homeowner's exemption that reduces the assessed value of your primary residence by $7,000. This means if your home is assessed at $500,000, the taxable value becomes $493,000. You must file for this exemption with your county assessor — it does not happen automatically. The important date to file is usually the same as the property tax bill important date, though some counties allow filing later if you can show good cause for the delay.

If you are over 65, blind, or disabled, you may be may be able to access for a senior exemption or disabled person's exemption, which can reduce your assessed value by up to $7,000 or more. You must file a separate process with the assessor. If you own property that is used for agriculture, religious purposes, or other specific uses, different assessment rules may explore — contact your county assessor to find out.

Proposition 19, passed in 2020, changed some of these rules. It eliminated the parent-to-child property transfer exemption for properties over $1 million (though the exemption still applies to the first $1 million of value). It also allows seniors, disabled people, and disaster victims to transfer their Prop 13 base value to a new home in some cases. The rules are complex, and you should contact your county assessor if any of these situations explore to you.

How Proposition 13 affects your tax bill over time

Proposition 13 creates a situation where long-time homeowners pay much less property tax than newer homeowners in the same neighborhood. If you bought your home in 1990 for $200,000, your assessed value today might be around $400,000 (accounting for the 2% annual increases). But if your neighbor bought an identical home last year for $1.2 million, their assessed value is $1.2 million. Your neighbor pays six times as much property tax as you do, even though you own the same house.

This has two practical effects. First, it makes property tax very predictable for long-time owners — your bill will not spike unexpectedly. Second, it creates an incentive to hold onto property rather than sell it, because selling triggers a reassessment at current market value. Some people stay in homes they have outgrown because they do not want to lose their low tax base.

Frequently Asked Questions

What happens if I do not pay my property tax bill?

If you miss the delinquency important date, you owe a penalty (usually 10% of the unpaid amount) plus interest. The county can place a lien on your property. If you do not pay for several years, the county can sell your property at a tax sale to recover the debt, though this process takes time and the county must follow legal procedures. Contact your county treasurer when ready if you cannot pay.

Can I appeal my assessed value?

Yes. You have 30 days from the date you receive your assessment notice to file an appeal with your county assessor. You can file the appeal yourself without a lawyer. The assessor will review your claim and either uphold or reduce the assessment. If you disagree with the assessor's decision, you can appeal to the county assessment appeals board.

Do I have to file for the homeowner's exemption every year?

No. Once you file for the homeowner's exemption, it stays on your property as long as you own it and it remains your primary residence. If you move or the property is no longer your primary home, the exemption ends. You do not need to renew it annually.

What is the difference between assessed value and market value?

Market value is what your home would sell for today. Assessed value is what the county uses to calculate your tax bill, and under Prop 13 it is usually much lower than market value for long-time owners. The assessed value increases by a maximum of 2% per year, while market value can rise or fall much faster.

If I inherit a house, do I have to pay taxes on it?

You do not owe federal inheritance tax on real estate. However, you will owe California property tax going forward. Depending on your relationship to the person who left you the property, you may be exempt from reassessment under Prop 13 — file a claim with the assessor to find out. You will also need to record the deed with the county recorder.