California's Property Tax Rate Is 1% of Assessed Value, Plus Local Additions
California's base property tax rate is 1 percent of your home's assessed value, set by state law. On top of that, your county and local districts add their own taxes for schools, fire protection, water, and other services. The total you pay depends on where your property sits — a house worth $500,000 in one county might have a different total rate than the same house in another county, because local additions vary.
The assessed value is not the market price you paid or what your home is worth today. Instead, it is the value on the county assessor's roll, which starts at your purchase price and increases by a maximum of 2 percent per year, regardless of how much your home's market value rises. This is the Proposition 13 rule, passed in 1978, and it is why two identical houses on the same street can have very different tax bills if one sold recently and one sold decades ago.
Your actual bill arrives as a single number from your county assessor's office, so you do not calculate the rate yourself. But understanding how it breaks down helps you read the bill and know what portion funds schools versus fire versus other services in your area.
Key Takeaways
- California's base rate is 1 percent of assessed value, but your total rate includes local district taxes that vary by county and city.
- Assessed value starts at your purchase price and rises by no more than 2 percent per year under Proposition 13, not by current market value.
- Your county assessor's office sends one bill that combines all taxes owed, so you see the total rather than calculating each piece.
- Two homes worth the same amount today can have different tax bills if they sold in different years, because of the 2 percent annual cap.
- Local bond measures and special districts can add significant amounts to your bill, and these change over time as bonds are paid off or new ones pass.
How the 1 Percent Base Rate Works With Local Additions
The 1 percent goes to the state and county general fund. On top of that, your bill includes taxes for school districts, fire protection districts, water districts, library districts, and sometimes special assessment districts created by local bond measures. Each of these is a separate line item on your bill, though they arrive as one total amount due.
The size of these local additions depends entirely on where you live. A property in a wealthy school district with recent bond measures will have a higher total rate than a property in a district with older, paid-off bonds. A property in an area with a separate fire district will have a fire tax; a property served by county fire will not. There is no single "California rate" beyond the 1 percent base — the rest is local.
Your county assessor's office publishes a breakdown of rates by district, but the easiest way to see what you will owe is to look at a recent property tax bill for a home in the neighborhood you are considering, or to contact the assessor's office directly with the address and ask for an estimate.
How Proposition 13 Affects Your Assessed Value
When you buy a home, the county assessor sets the assessed value at your purchase price (or the market value if you inherited it or received it as a gift). Each year after that, the assessed value can increase by no more than 2 percent, even if your home's market value doubles or triples. This cap stays in place until you sell the property, at which point the assessed value resets to the new sale price.
This is why a homeowner who bought in 1990 pays far less tax than a neighbor who bought the same house in 2020. The 1990 buyer's assessed value has grown by 2 percent per year for over 30 years; the 2020 buyer's assessed value starts fresh at the 2020 purchase price. Both pay the same 1 percent rate on their assessed value, but the assessed values are completely different.
The 2 percent cap applies only to the assessed value, not to the tax rate itself. If local voters pass a new school bond or fire district measure, the rate portion of your bill can jump in a single year, even though your assessed value still grows by only 2 percent.
When Your Assessed Value Resets and What Triggers a Reassessment
Your assessed value resets to current market value when you sell the property. It also resets if you transfer the property to a family member in certain cases, though some transfers between spouses or parents and children are exempt under Proposition 19 rules. If you make major improvements to your home — a new roof, an addition, a pool — the assessor may increase the assessed value to reflect the improvement, though the increase is capped at the cost of the improvement itself.
The assessor's office conducts regular inspections and may adjust the assessed value if they discover unpermitted work or if the property condition has changed significantly. You have the right to appeal your assessed value if you believe it is too high. Appeals must be filed by a important date set by your county (usually in the spring), and you can present evidence like recent appraisals or comparable sales to support your case.
If you own property in multiple counties, each county assesses and bills separately. If you own commercial property, the rules are different — commercial property is reassessed at market value every year, not capped at 2 percent.
How to Find Your Specific Tax Rate and Bill
Your property tax bill arrives once a year, usually in the fall, and shows the total amount due. The bill breaks down which districts are taxing you and how much each contributes to the total. If you want to know the rate before you buy a home, contact your county assessor's office with the address and ask for the current assessed value and an estimate of the total tax bill.
You can also search your county assessor's website — most counties have online databases where you can look up any address and see the assessed value, the current bill, and sometimes a breakdown of rates by district. The assessor's office can also tell you about any pending bond measures or rate increases that have been approved but not yet added to bills.
If you are buying a home, your real estate agent or title company can usually provide an estimate based on comparable properties in the area. This estimate is not official, but it gives you a ballpark figure for budgeting.
Special Assessments and Bond Measures That Add to Your Bill
Beyond the base 1 percent and regular district taxes, your bill may include special assessments for specific projects — a new school building, a fire station, street repairs, or flood control. These are usually created by local bond measures that voters approved, and they add a fixed amount to your bill each year until the bond is paid off, which can take 20 to 30 years.
When a bond measure passes, it increases the total tax rate for all properties in that district. The increase is not spread evenly — it depends on the assessed value of your property. A $1 million bond measure spread across 1,000 homes worth $500,000 each means roughly $2,000 per home per year, but the actual amount varies by each home's assessed value.
You can find out what bonds are currently on your bill and when they expire by looking at your tax bill or calling the assessor's office. Some counties publish a list of all active bonds and their expiration dates online.
Frequently Asked Questions
Do renters pay property tax?
Renters do not pay property tax directly. The property owner pays it, and the cost is typically factored into the rent. Some states offer renters a tax deduction or credit on their income tax return, but California does not have a renter's property tax deduction at the state level.
Can my property tax bill go down if my home's value drops?
Not automatically. Your assessed value is capped at a 2 percent annual increase, so it does not drop when the market falls. However, you can file an appeal with your county assessor if you believe the assessed value is significantly higher than the current market value, and the assessor may lower it.
What happens to property taxes if I inherit a home?
If you inherit a home from a parent or grandparent, Proposition 19 rules explore. In most cases, the assessed value resets to current market value when you inherit, which can result in a large tax increase. Some transfers between spouses or to children may be exempt — contact your county assessor for details about your specific situation.
Are there any exemptions that lower property tax in California?
California offers exemptions for certain properties, including homeowner's exemptions (which reduce assessed value by $7,000 for owner-occupied homes), agricultural land, and properties owned by nonprofits or government agencies. You must file for these exemptions with your county assessor — they are not automatic.
How often does my property get reassessed?
Your assessed value grows by up to 2 percent per year automatically. A full reassessment to current market value happens only when you sell the property. The assessor may adjust the value if you make major improvements or if they discover significant changes to the property condition.