California's property tax rate and how it works

California's base property tax rate is 1% of a property's assessed value. On top of that, your county and local districts add their own rates — school districts, fire protection, water, flood control, and others. The total you pay depends on where the property sits and what local bonds or measures have passed in that area. A house worth $500,000 in one county might have a different total tax bill than an identical house in another county, sometimes by hundreds of dollars per year.

The state does not set a single statewide rate above that 1% base. Instead, each county assessor determines the assessed value of your property, and each local district votes on whether to add its own tax rate. This means your actual bill is the sum of many separate levies, all stacked on top of the 1% base.

Key Takeaways

  • California's base property tax is 1% of assessed value, but your actual rate is usually higher because counties and local districts add their own levies on top.
  • Your property's assessed value is set by the county assessor and is usually the purchase price when you buy, then increases by up to 2% per year regardless of market value.
  • The total tax you owe depends on your property's location and which local districts serve it — school districts, fire, water, and others each add their own rate.
  • You can find your exact tax rate and bill by checking your county assessor's website or your property tax bill, which lists every district's levy separately.

How assessed value is determined in California

When you buy a property in California, the county assessor sets its assessed value at the purchase price. That becomes your base. From that point forward, the assessed value can increase by no more than 2% per year, even if the property's market value rises much faster. This is the result of Proposition 13, passed in 1978, which caps the annual increase in assessed value.

The 2% cap applies every year until the property sells again. When it does, the assessor resets the assessed value to the new purchase price, and the 2% annual increase starts over. If you own a house you bought for $300,000 twenty years ago, its assessed value might be around $440,000 today (roughly 2% per year compounded), even if the house is now worth $800,000 on the open market. Your property tax bill is based on that $440,000 figure, not the $800,000 market value.

What gets added to the base 1% rate

Your county and local districts layer additional tax rates on top of the 1% base. These are called voter-approved bonds and measures. A school district might add 0.15%, a county flood control district might add 0.08%, and a city might add 0.10%. These vary widely by location. Some rural areas have very few districts and lower total rates; some urban areas with many districts and recent bond measures have total rates of 1.25% or higher.

You can see exactly which districts are taxing your property and at what rate by looking at your property tax bill. The bill lists every district separately — county, city, school district, fire district, water district, and any others — and shows the rate each one charges. Adding all these rates together gives you your total effective tax rate.

Finding your specific tax rate and bill

The fastest way to find what you will pay is to look at your property tax bill if you already own the property. The bill shows your assessed value, your total tax amount, and the breakdown by district. If you do not yet own the property or want to estimate before buying, contact the county assessor's office in the county where the property is located. They can tell you the current assessed value of a specific parcel and the total tax rate for that location.

Many county assessor offices now have online tools where you can search by address or parcel number and see the assessed value and tax rate. Some counties charge a small fee for this information if you request it by phone or mail, but online searches are usually free. The assessor's website also lists all the districts that tax properties in different areas of the county, so you can see the full breakdown before you buy.

How property taxes change over time

As long as you own the property and it does not sell, your assessed value increases by a maximum of 2% per year. Your tax bill rises by roughly 2% per year as a result, assuming no new bonds or measures are added. If your county or school district passes a new bond measure, your tax rate goes up immediately for all properties in that district, regardless of how long you have owned yours.

When you sell the property, the new owner's assessed value resets to the sale price. If you bought at $300,000 and sell at $600,000, the new owner's assessed value becomes $600,000, and their tax bill will be roughly double yours (assuming the same tax rate applies). This is why long-term owners in California often pay significantly less property tax than newer owners in the same neighborhood.

Comparing California's rates to other states

California's effective property tax rate — the total you pay as a percentage of market value — is lower than the national average. The national median is around 0.84% of market value; California's average is around 0.76%. However, this comparison is misleading because California property values are much higher than in most states. A 0.76% rate on a $800,000 house is $6,080 per year, which is more than many homeowners pay in states with higher rates but lower property values.

What makes California different is the 2% cap on annual increases. In most other states, your assessed value adjusts to market value every year or every few years, so your tax bill can jump significantly if your neighborhood appreciates. In California, your bill grows slowly and predictably as long as you own the property. This protects long-term owners but means newer buyers pay more tax than older owners nearby.

Frequently Asked Questions

Can I lower my property tax bill if my house value dropped?

Yes. If your property's market value has fallen significantly below its assessed value, you can file a Proposition 8 appeal with your county assessor to request a lower assessed value. You will need to provide evidence of the lower value, such as recent comparable sales or an appraisal. The process varies by county, but you typically have until a deadline set by the assessor each year.

What happens to property taxes if I inherit a house?

If you inherit a house from a parent or grandparent, California law (Proposition 19) may allow the property to keep its lower assessed value if you meet certain conditions. However, the rules changed in 2021 and are complex. Contact your county assessor's office with details about the inheritance to learn whether the property will be reassessed at market value or keep its previous assessed value.

Do I have to pay property tax if I own land but no building?

Yes. Vacant land is taxed the same way as improved property — at 1% of assessed value plus local district levies. The assessed value is based on what the land would sell for, not what a building on it would be worth. If you own raw land, you still receive a property tax bill each year.

How often does the county reassess property values?

The county assessor reassesses every property every year, but the assessed value only changes if the property sold, was significantly improved, or you filed an appeal. For properties that did not sell, the assessed value increases by up to 2% annually. A full market-value reassessment happens only when the property changes hands.