California's property tax rate is 1% of assessed value, plus local voter-approved additions that vary by county and district

California's base property tax is 1% of your home's assessed value, set by state law. On top of that, your county, city, school district, and special districts (fire, water, flood control) can add their own taxes. The total you pay depends entirely on where your property sits. A house worth $500,000 in one county might pay $7,500 per year, while the same house in another county could pay $9,000 or more.

The assessed value is not the market price you paid or what your home is worth today. It starts at the purchase price, then increases by a maximum of 2% per year, regardless of how much your home's actual value rises. This means if you bought your house in 2010 for $300,000, the county might still assess it at $365,000 today, even if it would sell for $800,000. You pay tax on the assessed value, not the market value.

Your property tax bill arrives once a year, usually in November or December for taxes due the following year. The bill shows the assessed value, the base 1% rate, and every local addition. You can request a property tax bill online through your county assessor's website, or call the assessor's office directly.

Key Takeaways

  • California's base rate is 1% of assessed value, but your actual rate is higher because counties and districts add their own taxes on top.
  • Assessed value is not market value — it starts at your purchase price and rises by a maximum of 2% per year, capped far below what your home might actually be worth.
  • Your total tax rate varies by location; two identical homes in different counties can have significantly different bills.
  • You can find your assessed value and see the breakdown of all taxes on your property tax bill, available from your county assessor.
  • Proposition 13, passed in 1978, locked in the 1% base rate and the 2% annual cap on assessed value increases.

How assessed value is determined and when it changes

When you buy property in California, the county assessor sets the assessed value at your purchase price. From that point forward, it increases by up to 2% per year — but only if the market value has actually risen. If your home's market value drops, the assessed value can go down, though this requires a formal appeal. The 2% cap means your assessed value will almost always lag behind your home's true market value, especially in appreciating areas.

The assessed value resets to current market value only when the property changes ownership. If you inherit a house or receive it as a gift, the assessed value stays the same unless the transfer triggers a reassessment under your county's rules — some counties reassess gifts, others do not. If you buy the property, it resets to your purchase price immediately. This is why long-time homeowners in California often pay far less property tax than new buyers in the same neighborhood.

You can challenge your assessed value by filing an appeal with your county assessor. The deadline is usually 30 days after you receive your property tax bill. You will need evidence that the assessed value is too high — comparable sales, a professional appraisal, or proof that your home needs major repairs. If you succeed, your assessed value drops, and so does your tax bill going forward.

Local additions and what they cover

After the base 1%, your bill includes taxes voted on by your county, city, school district, and special districts. A typical breakdown might look like this: 1% base, 0.25% for the county general fund, 0.15% for the city, 1.0% for schools, and 0.10% for a fire district. These percentages vary widely by location. Some counties add almost nothing; others add 0.5% or more. Your property tax bill lists every single addition, so you can see exactly where your money goes.

School district taxes are usually the largest local addition. In many California counties, schools receive 1% or more of assessed value. Voter-approved bonds for school construction or improvements can add another 0.1% to 0.3%. Special districts — fire protection, water, flood control, library — each add small amounts, typically 0.05% to 0.15% each. A property in a fire-prone area or a district that recently passed a bond measure will have higher additions than one in a lower-risk area.

These local additions are not fixed. When a district passes a new bond or tax measure, it appears on future property tax bills. You can find out what measures are on the ballot in your area by checking your county assessor's website or your city clerk's office. Some measures are temporary; others are permanent. Your property tax bill will show the end date if a tax is set to expire.

What your actual tax bill looks like

Your property tax bill shows your assessed value at the top, then lists the base 1% and every local addition as a separate line item. Each line shows the tax rate and the dollar amount. At the bottom is your total tax due. The bill also shows whether you owe the full amount or if you can split it into two installments (usually November and February).

If you own multiple properties in California, you receive a separate bill for each one. If you own property in more than one county, each county sends its own bill. Renters do not receive property tax bills — the landlord pays, though the cost is often passed along in rent.

You can pay your property tax bill online, by mail, or in person at your county tax collector's office. If you pay late, penalties and interest accrue quickly — usually 10% of the unpaid amount plus interest. If you do not pay for five years, the county can foreclose and sell your property at a tax sale.

How Proposition 13 affects what you pay

Proposition 13, passed in 1978, set California's base property tax rate at 1% and capped annual increases in assessed value at 2%. Before Proposition 13, property taxes were much higher and reassessed frequently, which drove many long-time homeowners out of their homes. Proposition 13 froze that system in place.

The consequence is that California has some of the lowest effective property tax rates in the nation — but only if you have owned your home for many years. A new buyer pays tax on a much higher assessed value than a neighbor who bought decades ago. This creates a two-tier system: established homeowners pay less, new buyers pay more, even on identical homes.

Proposition 13 also requires a two-thirds vote in the legislature to raise the state income tax or sales tax, and a two-thirds vote by local voters to pass new local property taxes. This makes it difficult for schools and local services to raise revenue, which is why many California districts rely on older bond measures or state funding.

Comparing property tax across California counties

Because local additions vary so much, your effective tax rate depends on where you live. A home assessed at $500,000 might generate a tax bill of $7,500 in one county and $9,500 in another. The difference comes from school district funding levels, local bond measures, and special district taxes.

Counties with high property tax rates often have well-funded schools or recent bond measures. Counties with lower rates may have older infrastructure or less local funding for services. You can compare rates by looking at your county assessor's website or by asking a real estate agent in the area you are considering. Some counties publish a "tax rate area" map showing the exact rate for each neighborhood.

If you are buying property, ask your real estate agent or the seller's agent for the current property tax bill. This shows you the exact amount you will owe in the first year. Remember that the assessed value will increase by up to 2% per year, so your bill will rise over time — but slowly compared to market value increases.

Exemptions and reductions you may may have access to for

California offers property tax reductions for certain owners. Homeowners over 65, disabled homeowners, and low-income homeowners may may have access to for a homeowner's exemption that reduces assessed value by $7,000 (the amount has not changed since 1978). You must own and live in the home as your primary residence. The exemption saves you roughly $70 per year in property tax, which is modest but worth claiming if you may have access to.

Veterans with service-connected disabilities may may have access to for a larger exemption, up to $200,000 of assessed value depending on disability rating. Surviving spouses of deceased veterans may also may have access to. You apply through your county assessor's office with proof of disability rating from the Department of Veterans Affairs.

Agricultural land, open space, and timber land may may have access to for lower assessments under the Williamson Act or similar programs. These require a contract with the county and restrict how the land can be used. If you own rural property, ask your county assessor whether your land qualifies.

Frequently Asked Questions

Why is my property tax bill so much higher than my neighbor's if our houses are the same?

Your neighbor likely bought their house earlier than you did. Under Proposition 13, assessed value is locked at the purchase price and rises only 2% per year. If your neighbor bought 20 years ago and you bought last year, their assessed value is much lower, even though your homes have the same market value. Your tax bill will eventually stabilize and grow slowly, but it starts much higher.

Can I deduct property tax from my federal income tax?

Yes, but only up to $10,000 per year total for all state and local taxes combined (property tax, income tax, and sales tax). This is a federal limit set by the Tax Cuts and Jobs Act of 2017. You must itemize deductions on your federal return to claim it. Consult a tax professional to see whether itemizing helps you more than taking the standard deduction.

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

Penalties and interest start accruing immediately. After 30 days, you owe a 10% penalty. After five years of non-payment, the county can foreclose and sell your property at a tax sale. If you are struggling to pay, contact your county tax collector about payment plans or hardship programs — many counties offer options before foreclosure.

Does my property tax go down if my home loses value?

It can, but you have to request it. If your home's market value drops significantly — usually due to major damage or a major decline in the neighborhood — you can file an appeal with your county assessor. You will need evidence like a professional appraisal or comparable sales. If approved, your assessed value drops and your tax bill decreases.

How do I find out what my property is assessed at?

Check your property tax bill, which shows the assessed value clearly. You can also look it up online through your county assessor's website — most counties have a searchable database where you enter your address or parcel number. You can also call your county assessor's office directly and ask for your assessed value and property tax bill.