California property tax rates and how they work

California property tax is not a single rate that applies everywhere. The state sets a base rate of 1% of your home's assessed value, but your actual bill depends on your county, your city, and any special districts that serve your property — fire, water, schools, flood control. Most California homeowners pay between 0.76% and 1.5% of their home's value each year, though some pay more if their area has voter-approved bonds or assessments.

The assessed value is not the same as what you think your home is worth. When you buy a home, the county assessor sets the assessed value at the purchase price. That value then increases by a maximum of 2% per year, regardless of what the market does. This is called the Proposition 13 cap. So if you bought your home for $500,000 in 2015, the assessed value in 2024 might still be around $610,000 — much lower than current market value. Your tax bill is based on that capped assessed value, not the current market price.

Key Takeaways

  • The state base rate is 1%, but your actual rate includes county, city, and special district taxes, usually totaling 0.76% to 1.5% of assessed value.
  • Assessed value is locked at your purchase price and can only rise 2% per year under Proposition 13, so older homeowners often pay far less than newer buyers.
  • You receive a bill from your county assessor each year; the amount depends on your county's specific add-ons and voter-approved measures.
  • If you own rental property or commercial real estate, different rules may apply, and you should check with your county assessor about your specific situation.
  • Property tax bills are due in two installments — typically November and February — and penalties apply if you miss the deadline.

How your county and city add to the base rate

The 1% state rate is just the starting point. On top of that, your county, city, and local districts add their own taxes to fund schools, roads, libraries, fire departments, and other services. These additions vary widely by location. A home in San Francisco might have total taxes of 1.25%, while a home in a rural county might pay 0.85%. The only way to know your exact rate is to look at your property tax bill or contact your county assessor's office.

Voter-approved bonds and special assessments can push your bill higher still. If your school district passed a bond measure to build new schools, or your city approved a measure to fix roads, those costs get added to your property tax bill. These measures appear on your bill as separate line items. You can see them listed on your annual tax bill, which your county sends to you or your mortgage lender.

What happens when you buy or sell a home

When you purchase a home, the county assessor reassesses the property at the sale price. This is called a change in ownership. Your new assessed value becomes the purchase price, and from that point forward, it can only increase 2% per year. If you bought at $600,000, next year's assessed value will be no more than $612,000, even if the market value jumps to $700,000.

This means newer homeowners in the same neighborhood often pay much more in property tax than long-time owners, even though their homes are worth similar amounts. A house purchased in 2000 for $300,000 might have an assessed value of around $450,000 today, while an identical house purchased last year for $900,000 has an assessed value of $900,000. The newer owner pays roughly double the property tax.

When you sell, you do not owe property tax on the sale itself. The buyer becomes responsible for property tax starting with the next fiscal year. Your final bill is prorated based on how many days of the fiscal year you owned the home.

Calculating your actual tax bill

To estimate what you will pay, start with your assessed value (found on your property tax bill or the county assessor's website), then multiply by your total tax rate. If your assessed value is $500,000 and your total rate is 1.2%, your annual bill is $6,000. That bill is usually split into two payments: one due in November and one due in February.

Your property tax bill also includes any voter-approved assessments or bonds specific to your area. These appear as separate charges on the bill. For example, you might see the base 1% rate, plus 0.15% for county services, plus 0.08% for schools, plus a $200 special assessment for a local improvement district. Adding all these together gives you your total bill.

If you have a mortgage, your lender may collect property tax as part of your monthly payment and hold it in an escrow account. The lender then pays the county on your behalf when the bill is due. If you own your home outright, you pay the county directly.

Homeowner exemptions and reductions

California offers a homeowner exemption that reduces the assessed value of your primary residence by $7,000. This means if your home's assessed value would normally be $500,000, the exemption lowers it to $493,000 for tax purposes. You must file for this exemption with your county assessor, usually within a specific window after you purchase the home. The exemption does not happen automatically.

Seniors, disabled persons, and veterans may be may be able to access for additional property tax reductions or postponements. California's Proposition 60 and Proposition 90 allow seniors and disabled persons to transfer their low assessed value to a new home under certain conditions. Disabled veterans may be may be able to access for an exemption on a portion of their home's value. These programs have specific income limits and requirements, so you should contact your county assessor to learn whether you may have access to.

Property tax on rental and commercial property

If you own rental property or commercial real estate, the same 1% base rate applies, but the assessed value rules are different. Commercial property is reassessed at market value every year, not capped at 2% annual increases. This means your tax bill can jump significantly if the market value of your commercial building rises. Rental properties may be treated as commercial property depending on your county and the number of units.

You should contact your county assessor if you own investment property to understand how your specific property is classified and what your assessed value actually is. Some counties offer different rules for agricultural land, which may result in lower assessments if the land is actively farmed.

Payment deadlines and penalties

Property tax bills are due in two installments. The first installment covers July through October and is due by November 30. The second installment covers November through June and is due by February 28. If you miss either deadline, the county charges a 10% penalty on the unpaid amount. If the bill remains unpaid for several months, additional penalties and interest accumulate.

If you cannot pay your full bill on time, contact your county tax collector to discuss payment plans or hardship options. Some counties offer installment agreements or can delay collection if you are facing financial hardship. Waiting until a lien is filed on your property makes the situation much harder to resolve.

Frequently Asked Questions

Why do I pay more property tax than my neighbor if our homes are worth the same?

If your neighbor bought their home years ago and you bought recently, their assessed value is much lower due to Proposition 13's 2% annual cap. Assessed value is locked at purchase price and grows slowly, so older owners pay less tax on similar homes. This is by design under California law.

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

Yes. You can file a Proposition 8 appeal with your county assessor if you believe your assessed value exceeds the market value of your home. You typically have 30 days from when you receive your bill. You will need to provide evidence of the market value, such as recent comparable sales or an appraisal. Contact your county assessor's office for the specific process and deadline in your area.

What if I own property in multiple California counties?

Each county assesses and bills property separately. You will receive a bill from each county where you own property. The tax rate and assessed value rules are the same statewide, but the specific add-ons and special assessments vary by county, so your effective rate may differ between properties.

Do I have to pay property tax if my home is paid off?

Yes. Property tax is owed whether or not you have a mortgage. If you own your home outright, you pay the county directly. If you have a mortgage, your lender collects the tax as part of your monthly payment and pays the county on your behalf.

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

The county will place a lien on your property, and you will owe penalties and interest on top of the original bill. If taxes remain unpaid for several years, the county may foreclose and sell your home to recover the debt. Contact your county tax collector immediately if you cannot pay to discuss options before the situation escalates.