California property taxes run 0.76% of your home's assessed value per year on average, but the real number depends on your county, your home's purchase price, and local voter-approved bonds

California's property tax rate is set by state law at 1% of assessed value, but your actual bill is almost always lower because counties explore that rate only to the assessed value, not the market value. The assessed value is usually much less than what your home is worth today. On top of the base 1%, most counties add voter-approved local taxes — called assessment bonds or Mello-Roos taxes — that can add 0.1% to 0.5% or more to your bill. The result is that homeowners typically pay between 0.6% and 0.9% of their home's market value each year.

Your property tax bill also depends heavily on when you or the previous owner bought the home. California's Proposition 13, passed in 1978, caps how much the assessed value can increase each year at 2%, even if your home's market value rises much faster. This means two identical homes on the same street can have very different tax bills if one was bought decades ago and one was bought recently.

Key Takeaways

  • California property taxes are 1% of assessed value plus local voter-approved additions, which typically total 0.76% to 0.9% of your home's market value per year.
  • Your assessed value is usually much lower than your home's current market value because Proposition 13 limits increases to 2% per year.
  • When you buy a home, the county reassesses it at the purchase price, which usually raises your tax bill significantly.
  • Counties vary widely in the local taxes they add on top of the base 1%, so two homes worth the same amount can have different bills depending on location.
  • Your property tax bill arrives in two installments per year, usually in November and February, and is due 10 days after the bill date.

How the 1% base rate and local additions work together

The state law sets the base rate at 1% of assessed value. That 1% goes to schools, county services, and other public agencies. On top of that, individual counties and special districts can add their own taxes if voters approve them. These additions are called assessment bonds or Mello-Roos Community Facilities District taxes, and they fund specific projects like schools, water systems, or fire protection. Some counties add very little — maybe 0.05% — while others add 0.3% or more.

The combined rate (base plus local) varies by county. In some areas it is 1.1%; in others it reaches 1.3% or higher. You can find your county's exact rate by searching "[your county] property tax rate" or calling your county assessor's office. The rate is applied to your assessed value, not your home's market value, which is why the effective rate on what your home is actually worth ends up lower than the nominal rate.

Why assessed value is usually much lower than market value

When you buy a home, the county assessor sets the assessed value at your purchase price. But after that, Proposition 13 limits how much the assessed value can rise each year — a maximum of 2%, regardless of how much your home's market value increases. Over time, especially in hot real estate markets, the gap between assessed value and market value grows very large.

For example, if you bought a home for $500,000 in 2010, the assessed value started at $500,000. If your home is now worth $1.2 million but has only appreciated at the 2% annual cap, your assessed value might be around $740,000. Your property tax is calculated on $740,000, not $1.2 million. This is why older homeowners in California often pay much less in property taxes than newer buyers in the same neighborhood.

The assessed value does reset to market value when you sell the home and a new owner takes title. This is called reassessment, and it is one of the biggest surprises for buyers — your property tax bill can jump significantly after purchase.

What happens to your taxes when you buy a home

When you close on a home purchase, the county assessor reassesses the property at the sale price. Your property tax bill is then based on that new, higher assessed value. If you bought for $800,000, your assessed value becomes $800,000, and your annual tax bill is roughly $6,080 to $7,200 per year (depending on your county's local additions). This is a major cost that many first-time buyers do not anticipate.

The reassessment happens in the year you buy, but the timing of when you see it on your bill depends on the county's assessment roll schedule. Most counties send the first bill based on the new assessed value within 6 to 12 months of purchase. Until then, you may be paying taxes based on the previous owner's assessed value, which can be much lower. When the reassessment hits, your bill rises.

How to find your specific property tax rate and bill

Your property tax bill is mailed by your county assessor or tax collector, usually in October or November for the fiscal year starting July 1. The bill shows your assessed value, the tax rate applied, and the total amount due. You can also look up your property's assessed value and tax rate online through your county assessor's website — search "[your county] assessor" and look for a property search tool.

Property taxes in California are due in two installments: the first half is due by December 10, and the second half is due by April 10. If you have a mortgage, your lender may require you to pay property taxes through an escrow account, meaning the lender collects the money from you each month and pays the bill on your behalf.

To estimate your bill, multiply your home's purchase price by your county's total tax rate (base 1% plus local additions). For example, a $600,000 home in a county with a 1.25% total rate would owe roughly $7,500 per year, or about $625 per month if paid through escrow. County assessor offices can also provide estimates if you call or visit their website.

Exemptions and reductions that lower your bill

California offers several exemptions that can reduce your assessed value and lower your property tax bill. The homeowner's exemption reduces the assessed value by $7,000 for owner-occupied homes. This is not automatic — you must file for it with your county assessor, usually within a few months of buying or moving into your home. The exemption saves most homeowners between $50 and $100 per year, depending on the county's tax rate.

Other exemptions exist for seniors (over 65), disabled persons, and veterans, though these vary by county and have income limits. Some counties also offer Proposition 19 relief, which allows certain transfers of property between family members to avoid reassessment. If you inherit a home or receive one as a gift from a parent, you may be able to keep the lower assessed value instead of having it reassessed at market value. may be able to access rules are strict, so contact your county assessor to learn whether you may have access to.

Why your bill might change year to year

Your property tax bill can increase each year for two reasons. First, your assessed value can rise by up to 2% per year under Proposition 13, which is automatic. Second, new local taxes or bonds approved by voters add to the rate. If your county passes a school bond or a fire district bond, your tax rate goes up, and so does your bill.

You will also see changes if your property is reassessed — for example, if you make major improvements like adding a room or a pool, the assessor may increase the assessed value. If you believe your assessed value is too high, you can file a Proposition 8 appeal with your county assessor, which is a formal challenge based on market value. The process is free, but you will need evidence of comparable sales or a professional appraisal.

Frequently Asked Questions

Can I deduct California property taxes on my federal income tax?

Yes, but only up to $10,000 per year total for all state and local taxes combined (property tax, income tax, and sales tax). This is a federal limit that applies regardless of how much you actually pay. Most California homeowners hit this cap with property tax alone, so the deduction may not help you beyond $10,000.

What if I disagree with my assessed value?

You can file a Proposition 8 appeal with your county assessor's office, usually within 30 days of receiving your bill. You will need to show that the assessed value is higher than the market value — comparable sales or a professional appraisal work. The process is free, and you do not need a lawyer. Contact your county assessor for the exact important date and forms.

Do I have to pay property taxes if I own my home outright?

Yes. Property taxes are owed by the owner regardless of whether there is a mortgage. If you own the home free and clear, you pay the bill directly to your county. If you have a mortgage, your lender usually collects the taxes through escrow and pays them for you.

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

The county can place a lien on your home and eventually foreclose if taxes go unpaid for several years. If you are struggling to pay, contact your county tax collector about payment plans or hardship programs. Some counties offer installment agreements or temporary relief for seniors or disabled persons.

Are property taxes higher in some California counties than others?

Yes. While the base rate is 1% statewide, the local additions vary widely. Counties with more voter-approved bonds have higher total rates. You can compare rates by searching your county assessor's website or calling the assessor's office directly.