California's property tax rate and how it's calculated

California's property tax is 1% of your home's assessed value, plus any local bonds or assessments your county or city has approved. That 1% is set by state law and does not change. What changes is the assessed value — the county assessor's estimate of what your property is worth.

The assessed value is not the same as the market value. When you buy a home, the assessor sets the assessed value at the purchase price. After that, it can only increase by up to 2% per year, even if your home's market value rises much faster. This is called the Proposition 13 cap, passed in 1978. The assessed value stays capped until the property sells again, at which point it resets to the new purchase price.

Your total property tax bill is the assessed value multiplied by 1%, plus any voter-approved local taxes. A home assessed at $500,000 would owe $5,000 in base property tax, before any local additions. Counties and cities can add taxes for schools, fire districts, water agencies, and other services — these vary widely by location.

Key Takeaways

  • California's base property tax rate is 1% of assessed value, set by state law and the same everywhere in the state.
  • Assessed value is locked at your purchase price and can only rise 2% per year until you sell, which keeps long-term owners' taxes much lower than new buyers in the same neighborhood.
  • Your actual bill includes the 1% base plus local taxes for schools, fire, water, and other services that vary by county and city.
  • You receive a property tax bill once a year, usually in the fall, and taxes are due in two installments: November and February.
  • You can request a reassessment if you believe the county assessor overvalued your property, but the process takes months and requires documentation.

When your assessed value increases and when it resets

Your assessed value rises automatically by up to 2% each year, whether your home appreciates or not. The county assessor applies this increase on July 1 of each year. You will see the new assessed value on your property tax bill the following fall.

The 2% cap resets only when the property sells. If you buy a home for $600,000, the assessed value starts at $600,000. After one year it becomes $612,000 (2% increase). After ten years it would be around $731,000 — far below the market value if the neighborhood has appreciated. When you sell and the new owner buys at $900,000, the assessed value jumps to $900,000 and the cycle begins again for them.

Certain transfers do not trigger a reassessment. If you transfer the property to a spouse, child, or grandchild under Proposition 19 rules (updated in 2021), the assessed value may stay the same or increase only slightly, depending on the relationship and whether you still live there. These transfers require filing a claim with the assessor's office within three years of the transfer.

Local taxes and bonds added to your bill

Beyond the 1% base, your county and city can add taxes that voters have approved. These are called voter-approved assessments or special taxes. Common ones include school district taxes, fire protection district taxes, water district taxes, and community college taxes. Some are a percentage of assessed value; others are a flat amount per parcel.

A property tax bill in one California county might total 1.2% of assessed value, while the same home in another county might total 1.35%. The difference is entirely local taxes. You can find your county's tax rate breakdown on the county assessor's website or on your property tax bill itself, which lists each taxing agency and its rate.

Bonds appear on your bill as separate line items. If voters approved a school bond or infrastructure bond, the cost is spread across all properties in that district over the bond's term — often 20 or 30 years. These are not optional; they are part of your legal tax obligation once voters approve them.

How to find your assessed value and property tax bill

Your county assessor maintains a public record of every property's assessed value. You can search by address on the assessor's website — each county runs its own site, so search "[your county] assessor" to find it. The site shows the current assessed value, the land value, the improvement value, and often the prior year's value so you can see the annual increase.

Your property tax bill arrives once a year, usually in October or November, and covers the fiscal year from July 1 to June 30. Taxes are due in two installments: the first half is due by November 30, and the second half is due by February 28. If you miss either important date, you owe a penalty and interest. Many counties allow online payment through their tax collector's website.

If you own property in multiple counties, you will receive a separate bill from each county. If you have a mortgage, your lender may collect property taxes through an escrow account and pay the county directly — check your loan documents to see whether this applies to you.

Challenging your assessed value

If you believe the county assessor overvalued your property, you can file a Proposition 8 appeal (also called a value reduction appeal). This is the formal way to request a lower assessed value. You must file between July 2 and November 30 of the fiscal year you are challenging. The important date is strict; missing it means you cannot appeal that year.

To file, contact your county assessor's office and request a Proposition 8 appeal form. You will need to provide evidence that the assessed value is too high — comparable sales of similar homes in your area, an independent appraisal, or documentation of property damage or defects. The assessor will review your evidence and either lower the value or uphold it. If you disagree with the result, you can appeal to the county Assessment Appeals Board, which is independent of the assessor's office.

The appeals process takes several months. You will not see a reduction on your current bill; if your appeal succeeds, the lower value applies to the next fiscal year's bill. Many people hire a property tax consultant or attorney to handle appeals, especially if the property is valuable or the overvaluation is significant. These professionals typically charge a percentage of the tax savings they achieve.

Exemptions and deferrals that reduce your bill

California offers several exemptions that lower your assessed value or eliminate property tax entirely. The homeowner's exemption reduces the assessed value of your primary residence by $7,000 (as of 2024; this amount adjusts annually for inflation). You must own and occupy the home as your principal residence to may have access to. The exemption is automatic in most counties, but you should verify it appears on your bill; if it does not, contact the assessor to claim it.

Other exemptions are available for disabled veterans, seniors over 65 with low income, and certain nonprofit organizations. The Senior Homeowner Property Tax Deferral Program allows homeowners 61 and older with low income to defer property taxes until the home is sold or the owner passes away. The state then collects the deferred taxes from the estate. This program requires a separate process to your county assessor.

Agricultural land and open space land may may have access to for lower assessments under the Williamson Act or similar programs, but these require a long-term commitment to keep the land in agricultural or open use. Changing the use of the land can trigger a reassessment and back taxes.

How property tax affects your overall tax picture

Property tax is deductible on your federal income tax return, but only up to $10,000 per year in total state and local taxes (SALT cap). This means if your property tax, state income tax, and sales tax combined exceed $10,000, you can only deduct $10,000 total. For high-income California residents, this cap often means property tax deductions are limited or eliminated.

The SALT cap is a federal rule that has been in place since 2017 and is scheduled to expire after 2025. If you are married filing separately, the cap is $5,000 per person. If you own investment property or a rental home, property tax on that property is deductible in full as a business expense, separate from the SALT cap.

Property tax also affects your basis in the home for capital gains purposes. When you sell, your gain is the sale price minus your adjusted basis. Property tax paid does not reduce your basis, but certain capital improvements do. Keeping records of improvements and their costs helps you lower your taxable gain when you eventually sell.

Frequently Asked Questions

Why do my neighbors pay less property tax than I do if we have similar homes?

They likely bought their homes earlier than you did. Under Proposition 13, assessed value is locked at purchase price and rises only 2% per year. If your neighbor bought 20 years ago and you bought last year, their assessed value is far lower even though the homes are worth the same today. This is why property tax bills can vary dramatically on the same street.

Can I lower my property tax by reducing my home's value?

No. The assessed value is set by the county assessor based on market data and comparable sales, not on your home's condition or your personal circumstances. You cannot lower it by neglecting maintenance or claiming hardship. Your only remedy is to file a Proposition 8 appeal if you have evidence the assessor overvalued the property compared to similar homes.

What happens to property tax if I inherit a home?

If you inherit from a parent or grandparent, Proposition 19 allows the assessed value to stay the same or increase only slightly, depending on whether you occupy the home and the relationship. If you inherit from someone else, the property is reassessed at current market value. You should file a claim with the assessor within three years of inheriting to preserve any available exemption.

Do I have to pay property tax if I own land but do not live on it?

Yes. Property tax applies to all real estate you own in California, whether you live there or not. Vacant land, rental properties, commercial properties, and second homes all owe property tax based on their assessed value. The rate is the same 1% base plus local taxes, regardless of whether the property generates income.

What if I disagree with my property tax bill amount?

First, verify that the bill is calculating the tax correctly: assessed value times the tax rate should equal the bill amount. If the math is wrong, contact the county tax collector. If the assessed value itself is wrong, file a Proposition 8 appeal with the assessor. If local taxes are listed incorrectly, contact the specific taxing agency (school district, fire district, etc.) that issued the charge.