California's property tax rate and how it's calculated

California's base property tax rate is 1% of your home's assessed value, set by state law. However, your actual bill is almost always higher because counties and local districts add their own taxes on top of that base rate. The total you pay depends on where your property sits — which county, which school district, which water district, and which other local agencies serve your address.

Your assessed value is not the price you paid or what your home is worth today. Instead, the county assessor sets an initial value based on the sale price when you bought it, then increases that value by a maximum of 2% per year, regardless of actual market changes. This means a home bought for $500,000 in 2010 might have an assessed value around $610,000 today, even if it's now worth $1.2 million. When you sell or make major improvements, the assessor resets the value to current market price.

Your property tax bill = (assessed value) × (1% base rate + local add-on rates). A home with an assessed value of $600,000 in a county with total rates of 1.25% would owe $7,500 per year, or about $625 per month.

Key Takeaways

  • California's base property tax is 1% of assessed value, but your actual rate is usually 1.15% to 1.35% because counties and local districts add their own taxes.
  • Assessed value increases by a maximum of 2% per year after purchase, so older homeowners often pay far less tax than newer ones on identical homes.
  • Your bill resets to current market value only when you sell the property or make major improvements like adding a room or new roof.
  • The total tax you owe varies significantly by county and by which school districts, water districts, and other local agencies serve your address.
  • You can find your assessed value and current tax bill on your county assessor's website, usually searchable by address or parcel number.

Why your neighbor pays a different amount than you

Two homes on the same street can have vastly different tax bills because of when they were purchased. If one house sold in 2005 and another in 2023, the newer purchase will pay roughly double the tax on an identical home, because the 2005 purchase has only had 2% annual increases while the 2023 purchase starts at today's market value. This is the most dramatic difference you'll see in California property taxes.

The second reason is location within the county. A home in one school district pays different taxes than a home in another school district, even in the same city. Some districts have passed local bond measures that add to the tax rate; others have not. Similarly, some areas are in special assessment districts for flood control, fire protection, or other services that add to the base rate.

You can see the exact breakdown of your tax bill by visiting your county assessor's website. Search by your address or parcel number, and you'll see the assessed value, the base 1% rate, and each add-on rate from your county, school district, and other local agencies. The assessor's office can also mail you a detailed bill showing each component.

How to find your property tax rate and bill

Start with your county assessor's website — search "[your county] assessor" online. Most counties have a free public database where you enter your address or parcel number and see your assessed value, tax rate, and estimated annual bill. Some assessors also show a breakdown of which agencies are adding to your rate.

Your property tax bill itself arrives by mail from your county tax collector, usually in two installments per year (one in November, one in February). The bill shows the total amount due, the due dates, and payment options. If you have a mortgage, your lender may collect property tax as part of your monthly payment and pay it on your behalf.

If you cannot find your information online, call your county assessor's office directly. They can tell you your assessed value, your total tax rate, and your estimated annual bill over the phone. Have your address and parcel number ready if you have it.

What changes your assessed value and tax bill

Your assessed value stays the same year to year, increasing only by the 2% cap, until one of three things happens: you sell the property, you make major improvements, or the county reassesses it (which is rare and usually only happens if you challenge your current assessment).

Major improvements that trigger reassessment include adding a room, finishing a basement, installing a new roof, or replacing major systems. Routine maintenance like painting, replacing windows, or fixing a deck does not trigger reassessment. If you're unsure whether a project will trigger reassessment, ask your county assessor before you start.

When you sell, the new owner's assessed value resets to the sale price. This is why property taxes can jump dramatically for a new owner — they start fresh at market value instead of continuing the 2% annual increases the previous owner had.

Tax breaks and reductions available to some homeowners

California offers a homeowner's exemption that reduces your assessed value by $7,000 for your primary residence. This exemption is automatic in some counties and requires you to file a form in others — check your county assessor's website to see if you need to act. The exemption saves you roughly $70 per year on your tax bill.

Seniors (age 65 and older), disabled people, and veterans may be may be able to access for additional exemptions or deferrals. A senior deferral program lets you postpone paying property taxes until you sell the home or pass it to your heirs, though interest accrues. A disabled person's exemption works similarly to the homeowner's exemption but may offer a larger reduction depending on your county.

If you believe your assessed value is too high, you can file a Proposition 8 appeal with your county assessor. This is a formal challenge to the assessment, and you'll need evidence like recent appraisals or comparable sales. The important date to file is usually in late July or early August of the year you're challenging. Your county assessor's office can tell you the exact important date and what documents to submit.

How property taxes compare across California counties

Total property tax rates (base plus all add-ons) range from about 0.76% in some rural counties to 1.6% or higher in urban areas with many local districts and bond measures. The variation depends on how many school districts, water agencies, fire districts, and other entities serve that area, and whether those entities have passed local taxes.

A home with an assessed value of $500,000 might owe $3,800 per year in a low-tax county but $8,000 per year in a high-tax county. Over time, this difference compounds, especially if you're comparing a long-time owner (with a low assessed value due to the 2% cap) to a new owner in a different county.

You can compare rates by looking up the total tax rate on each county assessor's website, or by asking the assessor directly. If you're considering moving or buying property in a different county, the assessor can give you an estimate of what your taxes would be on a specific property.

Frequently Asked Questions

Do I have to pay property tax every year?

Yes, property tax is due every year as long as you own the property. It's divided into two installments — typically due in November and February. If you miss a payment, penalties and interest accrue, and the county can eventually foreclose on your home for unpaid taxes.

What happens to property taxes when I sell my house?

Your tax obligation ends when the sale closes. The new owner becomes responsible for taxes starting the next tax year. Their assessed value resets to the sale price, so their tax bill will likely be much higher than yours was, unless they also benefit from the 2% annual cap over many years.

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

You can deduct state and local property taxes on your federal return, but only up to $10,000 per year total (including income taxes and sales taxes combined). This cap has been in place since 2017. Check with a tax professional about whether this deduction benefits your situation.

What if I disagree with my assessed value?

File a Proposition 8 appeal with your county assessor. You'll need to submit evidence like recent appraisals, comparable home sales, or photos showing the property's condition. The important date is usually late July or early August. The assessor will review your evidence and either adjust the value or deny the appeal.

Does renting out my home change my property taxes?

Renting out your primary residence does not automatically change your assessed value or tax rate. However, if you convert it to a rental property and no longer live there, you lose the homeowner's exemption, which increases your taxes by about $70 per year. The assessed value itself stays the same unless you make major improvements or the county reassesses it.