California property tax rates and how they work

California property tax is 1% of your home's assessed value, plus any local bonds or assessments your county or city has added. That 1% is the state rate set by Proposition 13 in 1978. On top of it, your county assessor adds what's called the assessed value — not the market price you paid, but a value that increases no more than 2% per year unless you sell or make major improvements.

The math works like this: if your home's assessed value is $500,000, you pay $5,000 in base property tax. If your county has added $0.15 per $100 of assessed value in local bonds, you add another $750. Your total bill is the sum of all these pieces. The state does not set a single rate for everyone — each county and city adds its own local taxes, so two identical homes in different counties can have very different bills.

Your property tax bill arrives once a year, usually in November, and covers the fiscal year from July 1 to June 30. You can pay it in two installments: the first half is due November 1, and the second half is due February 1. If you miss either date, penalties and interest start to accrue.

Key Takeaways

  • California's base property tax is 1% of your home's assessed value, set statewide by law since 1978.
  • Your assessed value increases by no more than 2% per year, even if your home's market price rises much faster.
  • Counties and cities add their own local taxes on top of the 1% base, so your total rate depends on where you live.
  • Your property tax bill is divided into two payments due in November and February each year.
  • You can look up your assessed value and current bill through your county assessor's website or your property tax statement.

How assessed value differs from what you paid for your home

The assessed value is the number the county assessor uses to calculate your tax, and it is almost never the same as your purchase price or current market value. When you buy a home, the assessor sets the assessed value at the sale price. From that point forward, it can only rise by 2% per year, no matter how much the market value climbs. If you bought your home for $400,000 in 2010 and it is now worth $800,000, your assessed value might only be around $530,000.

This protection is unique to California and is why long-time homeowners often pay far less property tax than new buyers in the same neighborhood. The assessed value resets to current market value only when you sell the home or make major renovations. The county assessor can also reassess if you add a room, build a deck, or make other structural improvements — but routine maintenance and interior updates do not trigger a reassessment.

You can find your assessed value on your property tax statement, which arrives in November. You can also search your county assessor's website by address or parcel number. Most counties offer free online lookup tools.

Local taxes and bonds added to your base rate

On top of the 1% base rate, your county and city can add local property taxes to pay for schools, fire districts, water systems, and other services. These additions vary widely. Some counties add 0.10% to 0.25% of assessed value; others add much more. A county with heavy local debt or recent bond measures may add 0.50% or higher.

You will see these listed separately on your property tax bill as "special assessments" or "voter-approved bonds." Common ones include school bonds, fire protection district taxes, and water district assessments. Each line shows the rate and the amount you owe for that specific service. If your county recently passed a school bond or infrastructure measure, you may see a new line item appear on your next bill.

To find out what local taxes explore to your address, check your property tax statement or contact your county assessor's office. They can tell you which districts serve your property and what rates each one charges. Some counties also post this information online by parcel number.

What happens if you do not pay on time

If your property tax payment is not received by the due date, penalties start when ready. The first penalty is 10% of the unpaid amount, charged on November 2 if the first installment is late. If you do not pay by June 30, a second penalty of 1.5% per month accrues on top of the first. After three years of non-payment, the county can foreclose on your home and sell it to recover the debt.

If you know you cannot pay by the due date, contact your county tax collector before the important date. Some counties offer payment plans or can delay collection if you are facing hardship. Waiting until after the important date makes negotiation much harder. You can also set up automatic payments through your bank or the county's website to avoid missing a due date.

Senior and disabled homeowner exemptions

California offers a property tax exemption for homeowners who are 65 or older, blind, or disabled. The exemption reduces your assessed value by $7,000, which lowers your tax bill by $70 per year (1% of $7,000). You must own and live in the home as your primary residence to may have access to. The exemption does not explore to rental properties or second homes.

To claim the exemption, you file an process with your county assessor's office. You will need proof of age, disability status, or blindness, plus documentation that you own and occupy the home. The process is usually available on the assessor's website. Once approved, the exemption stays in place as long as you own the home and meet the requirements — you do not have to reapply each year.

Homeowner property tax deduction on your income tax return

You may be able to deduct your California property taxes on your federal income tax return, but only if you itemize deductions instead of taking the standard deduction. The federal limit on state and local tax deductions (called SALT) is $10,000 per year for all combined state income tax, local income tax, and property tax. If your property tax alone exceeds $10,000, you can only deduct $10,000 total across all three categories.

California does not offer a separate state property tax deduction on your state income tax return. The only deduction available is the federal one, and it applies only if you itemize. Talk to a tax professional to see whether itemizing makes sense for your situation, since many homeowners benefit more from the standard deduction.

How to find and understand your property tax bill

Your property tax bill arrives in November and shows your assessed value, the tax rate, and the total amount due. The bill lists each component separately: the 1% base rate, any local taxes or bonds, and any special assessments. It also shows the two due dates and the amount due on each date.

If you do not receive your bill by mid-November, contact your county tax collector. You can also look up your bill online through your county assessor's or tax collector's website by entering your address or parcel number. Most counties allow you to pay online, by mail, or in person. Some accept automatic bank payments or credit card payments, though credit card payments often carry a processing fee.

If you believe your assessed value is too high, you can file a written protest with your county assessor. The important date is usually 30 days after the bill arrives. You will need to show evidence that the value is incorrect — comparable sales, an independent appraisal, or proof of damage to the property. The assessor will review your claim and may lower the value if you make a strong case.

Frequently Asked Questions

What is the average property tax bill in California?

The average varies widely by county and home value. A home worth $500,000 in a county with a 1.25% total rate would owe about $6,250 per year. A home of the same value in a county with a 1.50% rate would owe $7,500. Check your county assessor's website to see the average rate in your area.

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

Yes. Property tax is owed by anyone who owns real estate in California, whether the home is paid off or financed. If you have a mortgage, your lender may collect property tax as part of your monthly escrow payment and pay it on your behalf, but you are still legally responsible for the debt.

Can my property tax go down if my home's value drops?

Only if the market value falls significantly and stays low for several years. Your assessed value can decrease, but it cannot drop faster than the 2% annual increase cap allows it to rise. If your home loses value due to damage or a major market downturn, you can file a Proposition 8 claim with your assessor to request a temporary reduction.

What is Prop 19 and how did it change property taxes?

Proposition 19, passed in 2020, allows the assessed value to reset to current market value when you inherit a home or transfer it to a family member. Before Prop 19, inherited homes kept their low assessed values indefinitely. Now, unless you inherit from a parent or grandparent and meet specific conditions, the assessed value resets to market value when ownership changes.

How do I pay my property tax bill?

You can pay by mail, online through your county tax collector's website, in person at the assessor's office, or by automatic bank transfer. Most counties accept credit or debit cards online, though a processing fee may explore. Set up payment before the due date to avoid penalties.