California property tax rates and how they work

California property tax is calculated as a percentage of your home's assessed value, not its market value. The statewide base rate is 1% of assessed value, plus local additions that vary by county and city. Your total rate typically falls between 0.76% and 1.5% depending on where you own property, because counties and special districts add their own levies on top of the base rate.

The assessed value is not what you paid for the house or what it's worth today. Instead, it's the value established when you bought the property, adjusted upward by a maximum of 2% per year regardless of how much the market value increases. This is the Proposition 13 rule that has shaped California taxes since 1978. When you sell, the property is reassessed at current market value, and the cycle begins again.

Your property tax bill arrives once a year, usually in November, and covers taxes for the fiscal year that runs July 1 to June 30. If you have a mortgage, your lender typically collects property tax as part of your monthly escrow payment and pays it on your behalf.

Key Takeaways

  • California's base property tax rate is 1% of assessed value, but your actual rate is higher because counties and districts add local levies that range from 0.76% to 1.5% total.
  • Assessed value is locked to your purchase price and rises by no more than 2% per year until you sell, when it resets to current market value.
  • A $500,000 home in Los Angeles County costs roughly $5,000 to $5,500 per year in property tax, but the same home in a different county could cost $300 to $500 more or less annually.
  • Your property tax bill arrives once yearly in November and covers the fiscal year from July 1 to June 30.
  • If you own multiple properties or own property in more than one county, each parcel is taxed separately at its own assessed value.

How to find your specific tax rate by location

Your county assessor's office publishes the combined tax rate for each neighborhood or parcel. You can search by address on your county assessor's website — most counties have an online parcel lookup tool where you enter your address and see the assessed value and tax rate assigned to your property. The county name plus "assessor" in a search engine will take you to the right office.

The rate you see listed is the total of the 1% base rate plus all local additions. A property in San Francisco might show 1.1625%, while the same property value in Kern County might show 1.0%, because San Francisco has higher local levies. These additions fund schools, fire districts, water agencies, and other local services, so they vary widely even within the same county.

If you're buying a home, the title company or real estate agent can provide a preliminary tax estimate based on the purchase price and the location's tax rate. This estimate assumes the property will be reassessed at your purchase price, so it's accurate for planning purposes.

What happens to your tax bill when you buy or sell

When you purchase a property, the county assessor reassesses it at the sale price. Your first full tax bill reflects that new assessed value. If you buy mid-year, you may receive a supplemental bill for the portion of the year after your purchase, calculated on a prorated basis. This supplemental bill arrives separately from your regular November bill and covers only the months you owned the property.

The assessed value then stays at that purchase price and increases by up to 2% annually, even if your home's market value rises much faster. This means your property tax bill grows slowly compared to homes in other states. However, when you sell and a new owner takes over, the property is reassessed at the new sale price, and the cycle resets.

If you inherit a property, the rules depend on whether you inherit from a parent or grandparent. Parent-to-child transfers may avoid reassessment under Proposition 19 rules, though the rules changed in 2021 and now explore only to the primary residence up to $1 million in value. Grandparent transfers and transfers to adult children do trigger reassessment. Check with your county assessor about your specific situation.

Exemptions and reductions that lower your bill

California offers several exemptions that reduce assessed value. The homeowner's exemption reduces the assessed value by $7,000 for owner-occupied homes, which typically saves $70 per year on property tax. You must file for this exemption with your county assessor; it does not happen automatically. The important date to file is usually the end of the fiscal year in which you purchase or move into the home, though you can file late with a penalty.

Disabled veterans, blind persons, and seniors over 65 with limited income may may have access to for larger reductions. The disabled veteran exemption can reduce assessed value by up to $8,000 depending on disability rating. Senior exemptions vary by county but typically explore to those 65 or older with household income below a threshold (often around $40,000 to $50,000, though this varies). You must explore through your county assessor's office and provide proof of age and income.

Agricultural land, open space, and wildlife habitat may may have access to for lower assessments under the Williamson Act or similar programs, but these require the owner to commit to keeping the land in that use for a set period. Churches, nonprofits, and government property are generally exempt from property tax entirely, though the rules are specific and require formal exemption status.

How Proposition 13 affects your long-term costs

Proposition 13, passed in 1978, capped the property tax rate at 1% and limited annual increases in assessed value to 2% per year. This means a homeowner who bought in 1980 and still owns the same house pays far less in property tax than a neighbor who bought the same house last year, even though both properties are identical and in the same location.

The 2% annual cap applies only to existing owners. When a property sells, it is reassessed at current market value, and the new owner's tax bill jumps to reflect that new assessed value. Over time, this creates a two-tier system where long-term owners pay significantly less than recent buyers. A home purchased for $300,000 in 2000 might have an assessed value around $450,000 today, while an identical home purchased this year would be assessed at current market value, potentially $1.2 million or more in a hot market.

Proposition 13 also requires a two-thirds vote in the legislature to raise tax rates and a two-thirds vote by local voters to approve local tax increases. This makes it difficult for counties and school districts to raise revenue, which is why many rely on special assessments and parcel taxes to fund services.

Special assessments and parcel taxes you may owe

Beyond the standard property tax, you may owe special assessments or parcel taxes that appear on your bill or arrive separately. A special assessment funds a specific improvement — a new sewer line, street repair, or flood control project — and is charged to properties that benefit from that improvement. A parcel tax is a flat fee per parcel that funds schools, libraries, or other services and is approved by voters in your district.

Special assessments are often one-time charges, though some are ongoing. Parcel taxes are typically annual. Both appear on your property tax bill or arrive as separate notices. You cannot avoid these by exemptions; they explore to all properties in the district, including those with homeowner exemptions or senior reductions.

When you buy a home, ask the title company or seller's agent whether any special assessments are pending or recently approved. Some assessments are disclosed at sale; others are approved after you purchase. Your county assessor's office can tell you what assessments explore to your specific parcel.

Calculating your estimated annual bill

To estimate your property tax, multiply your assessed value by your tax rate. If your assessed value is $600,000 and your tax rate is 1.2%, your annual property tax is $7,200. If you have a homeowner's exemption, subtract $70 from that total. If you may have access to for a senior or disabled veteran exemption, subtract the applicable amount.

Remember that your assessed value may be lower than your purchase price if you bought years ago. Check your county assessor's website to find your actual assessed value rather than guessing. The assessed value is public record and searchable by address in every California county.

If you are buying a home, use the purchase price as the assessed value for your estimate, explore the tax rate for that location, and add any known special assessments or parcel taxes. This gives you a realistic picture of your first-year tax bill. In subsequent years, add 2% to the assessed value each year to project future bills, unless you sell and the property is reassessed.

Frequently Asked Questions

Why is my property tax bill so much higher than my neighbor's if we live on the same street?

If your neighbor bought their home years ago and you bought recently, their assessed value is locked to their old purchase price plus 2% annual increases, while yours is based on your current purchase price. Proposition 13 allows this difference. Both of you pay the same tax rate, but you pay it on a much higher assessed value, so your bill is larger.

Can I appeal my assessed value if I think it's too high?

Yes. You can file an appeal with your county assessor's office, usually within 30 days of receiving your bill, though some counties allow longer. You must provide evidence that the assessed value is incorrect — comparable sales, an independent appraisal, or proof of damage to the property. The assessor will review your evidence and may reduce the value. If you disagree with the result, you can appeal to the county assessment appeals board.

Do I pay property tax if I own land but no house on it?

Yes. Any real property you own in California is subject to property tax based on its assessed value, whether it's vacant land, a commercial building, or a home. The assessed value is determined the same way — your purchase price, adjusted by 2% annually, until you sell.

What happens to my property tax if my home is damaged or destroyed?

You can file for a reduction in assessed value if your home is damaged or destroyed. The assessor will reassess the property based on its reduced condition. You must file within a certain timeframe, usually within the fiscal year in which the damage occurred. Contact your county assessor when ready if your property is damaged to learn the filing important date and required documentation.

Are property taxes deductible on my federal income tax return?

You can deduct up to $10,000 in state and local taxes combined (property tax, income tax, and sales tax) on your federal return if you itemize deductions. This cap was set by the Tax Cuts and Jobs Act of 2017. If your property tax alone exceeds $10,000, you can deduct only $10,000 total when combined with other state and local taxes. Consult a tax professional about your specific situation.