California's Property Tax Rate and How It's Calculated

California's property tax rate is 1% of the assessed value of your home or land. That 1% is the base rate set by state law, but your actual bill is usually higher because counties and local districts add their own taxes on top. The total you pay depends on where your property sits — a house in one county might have a total rate of 1.25%, while the same house across the county line could be 1.35% or higher.

The assessed value is not what you paid for the property or what it's worth on the market today. Instead, it's the value the county assessor assigns, which starts at your purchase price and then increases by a maximum of 2% per year, no matter how much the real estate market rises. This is called the Proposition 13 cap, and it's the reason property taxes in California don't spike when neighborhoods get expensive.

Your total property tax bill is the assessed value multiplied by the combined rate (1% plus all the local add-ons). If your home was assessed at $500,000 and your area's total rate is 1.25%, you'd pay $6,250 per year. That bill is usually split into two payments — one in November and one in February.

Key Takeaways

  • The base property tax rate in California is 1% of assessed value, but counties and local districts add taxes on top, making your actual rate between 1.1% and 1.6% depending on location.
  • Assessed value starts at your purchase price and increases by no more than 2% per year under Proposition 13, even if your home's market value rises much faster.
  • Your property tax bill is reassessed when you buy the property, when you build an addition, or when the county does a reassessment — not every year based on market changes.
  • Property taxes are due in two installments: November and February, and penalties explore if you pay late.
  • Some homeowners may reduce their taxes through exemptions for seniors, disabled persons, or veterans, though these vary by county.

What Gets Added to the 1% Base Rate

Counties and school districts, fire districts, water agencies, and other local governments all layer their own taxes onto that 1% base. These are called voter-approved bonds or assessments, and they fund schools, roads, libraries, and emergency services. In some areas they add less than 0.1%; in others they add 0.5% or more.

You can find your specific rate by looking at your property tax bill or by visiting your county assessor's website. The bill itself breaks down the 1% and all the add-ons separately, so you can see exactly which agencies are taking what. If you're shopping for a home, ask the real estate agent or the county assessor's office what the total rate is in that neighborhood — it varies block by block in some cases.

When Your Assessed Value Changes

Your assessed value stays frozen at the purchase price (or the value at the time of the last reassessment) and grows by only 2% per year. It does not change when the market booms or crashes. The only times your assessed value jumps to current market value are when you buy the property, when you add a major improvement like a second story or new roof, or when the county does a reassessment — which happens rarely and is usually triggered by a change in ownership.

This is why long-time homeowners in California often pay far less in property tax than new buyers in the same neighborhood. A house bought in 1990 for $300,000 might have an assessed value of around $600,000 today (with the 2% annual increases), while an identical house bought last year for $1.2 million would be assessed at $1.2 million. The newer buyer pays roughly twice as much in property tax, even though the houses are the same.

If you make improvements to your home — adding a room, finishing a basement, or replacing the roof — the county assessor may reassess just that addition. The rest of the property keeps its old assessed value and its 2% annual growth. Major renovations can trigger a full reassessment, so check with your county assessor before starting a large project if you're concerned about the tax impact.

Payment important date and Penalties

Property tax bills in California are due in two installments. The first is due November 1 and becomes delinquent on December 10. The second is due February 1 and becomes delinquent on April 10. If you miss either important date, you'll owe a 10% penalty on the unpaid amount, plus interest that accrues monthly.

If your property tax goes unpaid for five years, the county can foreclose and sell your home to recover the debt. This is rare — most counties work with homeowners on payment plans before it reaches that point — but it's a real consequence of ignoring the bills. If you're struggling to pay, contact your county tax collector's office to discuss options.

Property taxes are usually paid through your mortgage lender if you have a loan. The lender collects the tax as part of your monthly payment and holds it in an escrow account, then pays the county on your behalf. If you own the home outright, you pay the county directly.

Exemptions That May Lower Your Bill

California offers property tax exemptions for certain homeowners, though the rules and amounts vary by county. The most common are the homeowner's exemption (which reduces assessed value by $7,000 for owner-occupied homes), exemptions for seniors over 65, exemptions for disabled persons, and exemptions for veterans with service-connected disabilities.

To claim an exemption, you file a form with your county assessor — usually the Homeowner's Exemption Claim form or a similar document specific to your situation. The important date to file for the homeowner's exemption is typically the end of the fiscal year (June 30 in most counties), though you can file late if you just bought the home. Exemptions for seniors and disabled persons have different important date and requirements, so check your county assessor's website for the exact rules in your area.

These exemptions are not automatic. You have to claim them, and you have to recertify every few years in some counties. If you think you may have access to, contact your county assessor's office — they can tell you which exemptions explore to your situation and what documents you need to provide.

How Property Tax Compares Across California Counties

Because counties and local districts add different amounts on top of the 1% base, your total rate depends entirely on where your property is located. A property in one county might have a total rate of 1.10%, while an identical property across the county line could be 1.45%. The difference is not huge, but it adds up over time.

The variation comes from the number and size of local bonds and assessments in each area. A county with new school construction, recent infrastructure projects, or high fire district costs will have higher add-ons. A county with older infrastructure and fewer recent bonds will have lower add-ons. You can compare rates by checking the county assessor's website for any area you're considering.

Frequently Asked Questions

Do I have to pay property tax every year?

Yes. Property tax is an annual obligation in California. Your bill is due twice a year (November and February), and you must pay both installments. If you have a mortgage, your lender pays it from your escrow account. If you own the home outright, you pay the county directly.

What happens if I can't pay my property tax bill?

Contact your county tax collector's office when ready. Many counties offer payment plans or can work with you on a schedule. Ignoring the bill leads to penalties, interest, and eventually foreclosure after five years of non-payment, but most counties will negotiate before it reaches that point.

Can my property tax go up more than 2% per year?

The assessed value can only increase 2% per year under Proposition 13. However, if you make major improvements to your home or if the county reassesses the property, the assessed value can jump. Also, if new local taxes or bonds are approved by voters, your total rate (the percentage you pay) can increase, even if your assessed value stays the same.

Why do neighbors pay different property taxes on similar homes?

The main reason is when they bought their homes. A neighbor who bought 20 years ago has a much lower assessed value than a neighbor who bought last year, even if the homes are identical and in the same neighborhood. The older homeowner's assessed value has only grown 2% per year, while the newer homeowner's is based on today's market price.

How do I find out what my property is assessed at?

Your property tax bill shows the assessed value. You can also visit your county assessor's website and search by address or parcel number. Most counties have free online tools where you can look up any property's assessed value, tax rate, and recent assessment history.