California property taxes run 0.76% of your home's assessed value on average, but the actual bill depends on your county, any local bonds, and what your home was last sold for

California's base property tax rate is set by state law at 1% of assessed value. However, most counties add local taxes on top of that — school bonds, fire districts, water agencies, and other services — which push the real rate to between 0.76% and 1.5% depending on where you live. The biggest variable is not the rate itself but the assessed value, which is locked to the sale price when you buy and only rises 2% per year after that, even if your home's market value climbs much higher.

If you own a home worth $500,000 in a county with a combined rate of 1.2%, your annual property tax bill would be around $6,000. But if that same home sits in a county with a 0.9% rate, the bill drops to $4,500. The difference between counties can easily be $1,000 to $2,000 per year on an identical property.

Key Takeaways

  • California's base rate is 1%, but most counties add local taxes that bring the total to between 0.76% and 1.5% of assessed value.
  • Your assessed value is locked to your purchase price and rises only 2% per year, so longtime owners pay far less than new buyers on the same street.
  • You can find your county's exact rate and your home's assessed value on your county assessor's website or your property tax bill.
  • Proposition 13, passed in 1978, is why California's property taxes are lower than most states and why assessed values do not reset when homes change hands.

How the 1% base rate works with local add-ons

The 1% state rate applies to your home's assessed value. On top of that, your county and local districts — school districts, fire protection areas, water agencies, community colleges, and special assessment districts — can add their own taxes. These are called voter-approved bonds and levies, and they vary widely by location.

In some rural counties, the total rate stays close to 1%. In urban areas with many school districts and special services, the combined rate can reach 1.5% or higher. Santa Clara County, for example, often runs around 1.2% to 1.3% when you add all layers. Kern County may be closer to 0.9%. The only way to know your exact rate is to check your county assessor's website or look at a recent property tax bill for a home in that area.

Why your assessed value matters more than the rate

Two homes on the same block can have vastly different tax bills because of when they were bought. Under Proposition 13, your assessed value is set at your purchase price and can only increase 2% per year, regardless of how much your home's market value rises. This means a house bought in 1995 for $200,000 might have an assessed value of around $400,000 today, while an identical house bought last year for $1.2 million has an assessed value of $1.2 million.

At a 1.2% rate, the older home's owner pays about $4,800 per year. The new owner pays about $14,400. Both own the same property, but the tax bill differs by nearly $10,000 annually because of the purchase date. This is why property taxes in California are often lower than in other states — but only for people who have owned for many years.

Finding your county's rate and your assessed value

Your county assessor publishes the combined tax rate for your area. You can search "[your county] assessor property tax rate" to find it, or call your county assessor's office directly. Most assessors also let you look up your property online by address or parcel number to see your assessed value.

Your property tax bill itself lists both the rate and the assessed value, so if you have a recent bill, you already have the numbers. The bill shows the breakdown: the 1% state portion, each local district's portion, and the total. If you do not have a bill, the county assessor's website usually has a search tool where you can enter your address and see the assessed value in seconds.

What happens when you buy a home

When you purchase a home in California, the county assessor reassesses the property at the sale price. This is called Proposition 13 reassessment. Your first tax bill will be based on that new, higher assessed value. After that, the assessed value can only rise 2% per year, even if the real estate market booms and your home's market value doubles.

This reassessment happens only when the property changes ownership. If you inherit a home, you may be able to keep the previous owner's assessed value under certain circumstances — this varies by county and depends on your relationship to the deceased. If you own a property jointly and one owner dies, the surviving owner usually keeps the same assessed value. Check with your county assessor about your specific situation.

Exemptions and reductions that lower your bill

California offers a few ways to reduce property taxes. The homeowner's exemption reduces your assessed value by $7,000 if the home is your primary residence. This is not automatic — you must file for it with your county assessor, usually in the first year you own the home. The reduction saves most homeowners between $80 and $100 per year, depending on your county's rate.

Seniors over 65, disabled people, and veterans may be able to defer property taxes or claim additional exemptions. The rules vary by county and by individual circumstance. Your county assessor's office can tell you whether you may have access to. Some counties also offer Proposition 19 protections, which allow certain transfers between family members to keep the lower assessed value — for example, when a parent passes a home to an adult child.

How Proposition 13 affects what you pay

Proposition 13, passed in 1978, set California's property tax rate at 1% and capped annual increases in assessed value at 2%. This is why California's property taxes are among the lowest in the nation as a percentage of home value. In most states, property taxes reset to current market value every few years, which means homeowners pay much more.

The trade-off is that new buyers pay significantly more than longtime owners. A person who bought a home in 1990 and still owns it pays a fraction of what a neighbor who bought the same home last year pays in taxes. This creates a two-tier system where your tax burden depends heavily on when you bought, not just on the property's value.

Frequently Asked Questions

What is the average property tax bill in California?

The average varies by county and home value. On a $750,000 home with a 1.2% combined rate, expect around $9,000 per year. On a $500,000 home in a county with a 0.9% rate, expect around $4,500. Your actual bill depends on your specific county, local districts, and assessed value.

Do I have to pay property taxes every year?

Yes. Property taxes are due annually, usually in two installments — one in November and one in February. If you have a mortgage, your lender often collects property taxes as part of your monthly payment and pays the bill on your behalf through an escrow account.

Can my property taxes go down?

Your assessed value can only stay the same or rise 2% per year under Proposition 13. It cannot go down unless you file a formal assessment appeal, which requires showing that your home's market value has dropped significantly below the assessed value — usually after a major market downturn.

What happens if I do not pay my property taxes?

If property taxes go unpaid, the county can place a lien on your home and eventually foreclose. However, California gives property owners a long grace period — typically several years — before foreclosure happens. Contact your county tax collector when ready if you fall behind; many counties offer payment plans or deferrals for hardship situations.

Are property taxes deductible on my federal income tax?

Yes, you can deduct up to $10,000 in state and local taxes (including property taxes) on your federal return if you itemize deductions. This limit applies to all state and local taxes combined, not property taxes alone. Consult a tax professional about whether itemizing makes sense for your situation.