California's property tax is a yearly tax on real estate based on the assessed value of your home or land
California property tax is calculated as a percentage of your property's assessed value. The state sets a base rate of 1% of the assessed value, plus any local additions (called "voter-approved debt" or bonds). Most California homeowners pay between 0.76% and 1.25% of their home's value each year, depending on their county and any local measures that have passed.
The assessed value is not the same as what you think your home is worth. Instead, it is the value assigned by your county assessor, which is usually the purchase price when you bought the property. This assessed value increases by a maximum of 2% per year, even if your home's market value rises much faster. This is called the Proposition 13 cap, and it is one of the biggest reasons California property taxes are lower than in many other states.
You receive a property tax bill once a year, usually in the fall. The bill covers the fiscal year from July 1 to June 30. If you have a mortgage, your lender may collect property tax as part of your monthly payment and pay it to the county on your behalf.
Key Takeaways
- California property tax is 1% of assessed value plus local additions, paid yearly to your county assessor's office.
- Assessed value is usually your purchase price and increases by no more than 2% per year under Proposition 13, not based on current market value.
- Your property tax bill arrives once yearly and covers July 1 to June 30; if you have a mortgage, your lender typically pays it from your escrow account.
- Homeowners over 65, disabled persons, and low-income renters may reduce their property tax through separate programs run by each county.
- If you miss a payment, penalties and interest begin to accrue immediately, and the county can place a lien on your property.
How the assessed value is determined and when it changes
Your county assessor determines the assessed value of your property. When you first buy a home, the assessed value is set to your purchase price. From that point forward, the assessed value can increase by no more than 2% per year, regardless of how much the real estate market rises. This means if you bought your home for $400,000 in 2010, the assessed value in 2024 would be roughly $600,000 even if your home is now worth $1.2 million.
The assessed value resets to current market value only when the property changes ownership. If you sell your home, the new owner's assessed value starts fresh at the sale price. This is why long-time homeowners in California often pay much less property tax than newer residents on the same street.
The assessor can also change your assessed value if you make major improvements to your property—such as adding a room, a pool, or a new roof. Routine maintenance does not trigger a reassessment. If you believe your assessed value is wrong, you can file a Proposition 8 appeal with your county assessor's office, usually within 30 days of receiving your bill.
What is included in your property tax bill
Your property tax bill includes the base 1% rate plus any voter-approved local taxes. These local additions fund schools, fire departments, water districts, flood control, and other county services. The amount of local tax varies widely by county. For example, a county with recent school bond measures might add 0.25% to the base rate, while another county might add 0.50% or more.
Your bill also shows any special assessments. These are charges for specific improvements that benefit your property, such as a new sidewalk, street lighting, or sewer line. Special assessments are separate from property tax but appear on the same bill and are due on the same schedule.
If you own property in multiple counties, you receive a separate bill from each county. If you own a commercial property, your bill may be higher because commercial properties are sometimes assessed differently than residential ones.
Payment deadlines and what happens if you miss a payment
Property tax bills are due in two installments. The first installment is due November 1 and becomes delinquent on December 10. The second installment is due February 1 and becomes delinquent on April 10. You can pay both installments at once if you prefer, and many people do.
If you do not pay by the delinquent date, penalties begin immediately. The penalty is 10% of the unpaid amount. If the bill remains unpaid after June 30, an additional 1.5% monthly interest accrues. After five years of non-payment, the county can sell your property at a tax sale to recover the debt. Before that happens, the county places a lien on your property, which means you cannot sell or refinance without paying the back taxes first.
If you are having trouble paying, contact your county tax collector's office. Some counties offer payment plans or can defer taxes for seniors and disabled persons. The sooner you contact them, the more options you may have.
Property tax reductions for seniors, disabled persons, and renters
California offers three separate programs that can reduce property tax burden. The Homeowners' Property Tax Exemption reduces assessed value by $7,000 for owner-occupied homes. You must file a claim with your county assessor by the deadline (usually in the spring), and you must own and live in the home as your primary residence.
The Senior and Disabled Persons Property Tax Deferral Program allows homeowners age 62 or older, or persons with disabilities, to defer property taxes until the property is sold or transferred. You must have a household income below a certain threshold (this varies by county but is typically around $40,000 to $50,000). The state then pays your taxes, and the debt is repaid from the sale proceeds of your home.
The Renter's Tax Credit is a state income tax credit for low-income renters. It is not a property tax reduction, but it offsets state income tax based on rent paid. You claim it on your state tax return, not through the assessor's office. Income limits and credit amounts change yearly.
Each county administers these programs differently, so contact your county assessor's office to learn which programs you may be able to use and what documents you need to submit.
How Proposition 13 affects your property tax
Proposition 13, passed in 1978, is the law that caps assessed value increases at 2% per year and sets the base tax rate at 1%. This law is why California property taxes are lower than in most other states. Without it, your assessed value would reset to market value every year, and your property tax could double or triple if your neighborhood became more desirable.
Proposition 13 also requires that any new local tax must be approved by two-thirds of voters in that county or district. This makes it harder for counties to raise property tax rates, though they can still add local taxes through bonds and special assessments that appear on your bill.
The downside of Proposition 13 is that it creates unequal taxation: two identical homes on the same street can have very different property tax bills depending on when they were purchased. It also means counties sometimes have less revenue for schools and services than they would otherwise. However, changing Proposition 13 requires a statewide vote, and it remains politically difficult to do so.
Frequently Asked Questions
Is property tax the same in every California county?
No. The base rate is 1% statewide, but each county and local district can add voter-approved taxes. A home worth $500,000 might have a property tax bill of $5,000 in one county and $6,500 in another, depending on local bonds and assessments. Check your county assessor's website to see what local additions apply to your area.
What happens if I buy a home and the assessed value is much lower than the purchase price?
The assessed value will be set to your purchase price when you take ownership. If the seller's assessed value was lower (because they bought the home long ago), yours resets to your new purchase price. This is called a reassessment upon change of ownership.
Can I appeal my property tax bill if I think it is too high?
Yes. You can file a Proposition 8 appeal with your county assessor if you believe the assessed value is incorrect. The deadline is usually 30 days after you receive your bill. You do not need a lawyer, but you will need to show evidence that the value is wrong, such as recent comparable sales or a professional appraisal.
Do I have to pay property tax if I own land but no house?
Yes. Vacant land is taxed the same way as improved property. The assessed value is based on the land's market value, and you owe 1% of that value plus any local additions. If you are not using the land, you may still owe property tax every year.
What if my mortgage lender pays my property tax from escrow and then stops?
Contact your lender immediately. If your escrow account runs short, your lender is required to notify you and may ask you to pay extra each month to cover the shortfall. If your lender fails to pay your property tax bill, you are still responsible for the debt, and penalties will accrue. Always verify that your tax bill has been paid, even if your lender handles it.