California property tax rates and how they're calculated
California property tax is 1% of your home's assessed value, plus any local voter-approved bonds or assessments. That 1% is the state rate set by Proposition 13 in 1978. On top of it, your county or city may add special taxes — for schools, fire districts, water systems, or other services — that can range from 0.1% to 1.5% depending on where you live.
Your total property tax bill depends on three things: the assessed value of your property, the 1% base rate, and whatever local additions apply in your specific county. A home assessed at $500,000 in one county might have a different total tax bill than an identical home in another county because of those local levies.
The county assessor determines the assessed value, not the market value. Under Proposition 13, the assessed value is locked to the purchase price when you buy, then increases by a maximum of 2% per year regardless of how much your home's market value rises. If you bought your home for $400,000 in 2010, the assessed value might still be around $487,000 today — far below current market value.
Key Takeaways
- California's base property tax rate is 1% of assessed value, set statewide, plus local voter-approved additions that vary by county.
- Assessed value is locked to your purchase price and rises by a maximum of 2% per year, not based on current market value.
- Your total bill includes the 1% base plus local taxes for schools, fire, water, and other services specific to your location.
- Property tax is due in two installments: November 1 and February 1, with penalties if you miss the December 10 and April 10 deadlines.
- Homeowners over 65, disabled people, and low-income owners may reduce their assessed value through Proposition 8 or Proposition 19 transfers.
What's included in your property tax bill
Your property tax bill is not just one line item. The county assessor's office sends you a bill that breaks down the 1% base rate, then lists each local assessment separately. A typical bill might show: 1% base rate, plus 0.5% for school district, plus 0.2% for fire protection, plus 0.1% for a community college district, plus a flat fee for a water district.
Some of these local taxes are ad valorem — meaning they're a percentage of assessed value, like the base rate. Others are flat fees that don't change with your home's value. Bonds approved by voters appear as separate line items and usually expire after 20 or 30 years. When a bond expires, that portion of your bill drops.
You can see exactly what you're paying for by looking at your property tax bill or by searching your county assessor's website. Most counties let you look up your parcel number online and see the full breakdown of what each tax funds.
How assessed value differs from market value
This is the core of California property tax: your assessed value and your home's market value are usually very different. Proposition 13 created this gap by freezing assessed value at purchase price and capping annual increases at 2%. A home bought for $300,000 in 2005 might be worth $800,000 today but still have an assessed value around $400,000.
The assessed value only resets to current market value when the property changes ownership. If you sell your home, the new owner's assessed value starts fresh at the purchase price. This is why long-term homeowners pay far less property tax than new buyers in the same neighborhood.
The county assessor can raise your assessed value above the 2% cap if they discover you made major improvements — a new roof, addition, or major renovation. They do this through a reassessment, which you can appeal. If you believe your assessed value is wrong, you can file a Proposition 8 appeal with the county assessor's office, usually between July and September.
When and how to pay your property tax
Property tax bills are due in two installments each year. The first installment covers July through October and is due by December 10. The second installment covers November through June and is due by April 10. You can pay online, by mail, or in person at your county tax collector's office.
If you miss the December 10 deadline, you owe a 10% penalty on the first installment. If you miss April 10, you owe a 10% penalty on the second installment. After five years of nonpayment, the county can foreclose on your home and sell it to recover the debt. Many counties offer payment plans if you contact them before the deadline.
You can pay through your county's tax collector website, which usually accepts credit cards, debit cards, and bank transfers. Some counties charge a processing fee for credit card payments. If you have a mortgage, your lender may handle property tax through an escrow account — they collect money each month and pay the bill on your behalf.
Reductions and exemptions for certain homeowners
California offers several ways to reduce your assessed value if you meet specific conditions. Proposition 8 lets you request a reduction if your home's market value has dropped below its assessed value — common after a market downturn. You file a claim with the county assessor, usually between July and September, and provide evidence of the lower value (a recent appraisal or comparable sales).
Proposition 19, passed in 2020, lets homeowners over 55, disabled people, and victims of domestic violence transfer the low assessed value from an old home to a new one — once per lifetime. You must buy a home of equal or lesser value and file within two years of the purchase. This keeps your assessed value low even though you bought a new property.
Homeowners over 65 with low income may also reduce their assessed value through the Homeowners' Property Tax Postponement Program, which lets you delay paying property tax until you sell or pass away. You must have owned the home for at least 20 years and meet income limits that vary by county.
How property tax varies across California counties
The 1% base rate is the same everywhere in California, but local taxes make the total bill different in each county. A home with a $500,000 assessed value might have a total tax bill of $7,500 in one county and $8,500 in another, depending on local school funding, fire district taxes, and voter-approved bonds.
Counties with strong local tax bases — like those with high commercial property values — may have lower residential property tax rates. Counties that rely more on residential property tax to fund schools and services may have higher local additions. You can compare your county's rate to others by looking at the county assessor's website or calling the tax collector's office.
Voter-approved bonds also vary widely. Some counties have multiple active bonds for schools, infrastructure, or emergency services. These bonds add to your bill for 20 to 30 years, then expire. If you're considering buying in a new county, ask the county assessor what local taxes and bonds apply to the specific property.
Frequently Asked Questions
Why do my neighbors pay different property tax than I do for similar homes?
If your neighbors bought their homes at different times or prices, their assessed values are different. Proposition 13 locks assessed value to purchase price, so someone who bought in 2000 pays tax on a much lower value than someone who bought in 2020. The assessed value only resets when a property sells.
Can I appeal my property tax bill if I think it's too high?
Yes. If you believe your assessed value is wrong, file a Proposition 8 appeal with your county assessor between July and September. You'll need evidence like a recent appraisal or comparable sales. If your home's market value has dropped, this is the main way to lower your bill.
What happens if I don't pay my property tax on time?
You owe a 10% penalty for each missed installment. After five years of nonpayment, the county can foreclose and sell your home. Contact your county tax collector before the deadline if you need a payment plan — most counties offer them.
Does property tax include school funding?
Yes. School districts are funded partly through property tax, which appears as a separate line item on your bill. The amount varies by district and county. Voter-approved school bonds also add to your bill.
Can I deduct California property tax 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. This is the SALT deduction cap set by federal law. Many California homeowners hit this cap with property tax alone.