California's property tax rate is 1% of your home's assessed value, plus voter-approved local bonds and assessments

California has one of the lowest base property tax rates in the country: 1% of your property's assessed value goes to the county. That 1% funds schools, fire departments, libraries, and other local services. On top of that base rate, your county and local districts can add voter-approved bonds and special assessments for specific projects—a new school building, a water system upgrade, or a fire station. The total you pay depends on where your property sits and what local measures have passed.

The assessed value is not the market price of your home. It is the value the county assessor assigns for tax purposes, which usually stays the same year to year unless you sell the property, make major improvements, or the county reassesses it. This is why two identical houses on the same street can have different tax bills—one owner may have bought decades ago at a lower price, while the other bought recently.

Key Takeaways

  • California's base property tax rate is 1% of assessed value, set statewide by Proposition 13 in 1978.
  • Your assessed value typically does not change unless you sell, make major improvements, or the assessor reassesses the property.
  • Local bonds and special assessments are added on top of the 1% base rate and vary by county and district.
  • Your property tax bill includes payments to schools, county services, fire, water districts, and other local agencies.

How Proposition 13 set the 1% rate and locked in assessed values

In 1978, California voters passed Proposition 13, which capped the property tax rate at 1% and froze assessed values. Before that, assessors could raise your home's assessed value every year based on market conditions, and your tax bill could spike even if you did nothing to the property. Proposition 13 changed that: your assessed value stays the same unless you sell the home or add significant improvements.

When you buy a home, the assessor sets a new assessed value based on the sale price. That value then stays flat year to year, with only a small inflation adjustment allowed—up to 2% per year. If your home's market value rises to $800,000 but you bought it for $400,000 ten years ago, your assessed value for tax purposes is still close to $400,000 (plus the small annual adjustments). You pay tax on the lower number, not the current market price.

This system means long-term homeowners pay much less in property tax than new buyers in the same neighborhood. It also means the county cannot straightforward raise tax revenue by reassessing all homes when the market goes up—they have to ask voters to approve new bonds or assessments instead.

What gets added on top of the 1% base rate

The 1% is just the starting point. On top of it, your county and local districts add voter-approved bonds and assessments. A bond might fund a new school building or library renovation. A special assessment might pay for street repairs, a new fire station, or a water system upgrade. These additions vary widely by location—a property in one county might have $500 in annual bond and assessment charges, while an identical home in another county might have $2,000.

You can find out what bonds and assessments explore to your specific property by checking your property tax bill or contacting your county assessor's office. The bill lists each charge separately, so you can see exactly which district or project each one funds. Some assessments are temporary—they expire after a set number of years once the project is paid off. Others are permanent.

How to find your assessed value and calculate your bill

Your county assessor maintains a public record of every property's assessed value. You can search your assessor's website (usually found through your county government website) by address or parcel number. The search will show you the assessed value, the land value, the improvement value, and sometimes the market value estimate.

To estimate your property tax bill, multiply your assessed value by 0.01 (the 1% rate), then add the local bonds and assessments listed on your property tax bill. For example, if your assessed value is $500,000, the base tax is $5,000. If your county and districts have $1,200 in bonds and assessments, your total bill is $6,200. Your actual bill arrives in the mail or online through your county tax collector's office, usually in two installments per year.

When your assessed value changes

Your assessed value can increase in three situations: you sell the property, you make major improvements, or the county reassesses it. When you sell, the new owner's assessed value is set based on the sale price. If you add a room, a pool, or a major renovation, the assessor can increase the assessed value to reflect the improvement. If you do routine maintenance—replacing a roof, painting, or fixing a foundation—the assessed value does not change.

Counties also conduct periodic reassessments of neighborhoods or entire regions, especially after natural disasters or major market shifts. If your home was damaged in a fire or flood, the assessor may lower the assessed value. If your area was hit by a disaster and many homes were damaged, the county may reassess the whole neighborhood.

You have the right to appeal your assessed value if you believe it is wrong. The process and important date vary by county, but most allow appeals within 30 days of receiving your bill. You can file an appeal through your county assessor's office or with the county assessment appeals board.

How property taxes are divided among agencies

Your 1% base property tax payment does not go to one place—it is divided among multiple agencies. Schools typically receive the largest share, followed by the county general fund, cities, special districts (fire, water, library), and other local services. The exact split depends on your location and the agencies that serve your property.

If you own property in an unincorporated area (outside city limits), your tax money goes to the county and county services. If you own property within a city, your taxes are split between the city, the county, schools, and special districts. You can see the breakdown on your property tax bill or by contacting your county tax collector.

Frequently Asked Questions

Why is my property tax bill so different from my neighbor's if we live on the same street?

The difference is almost always the assessed value. If your neighbor bought their home years ago and you bought yours recently, their assessed value is much lower because Proposition 13 keeps it from rising with the market. You pay tax on the sale price you paid; they pay tax on a much older, lower value. Over time, your assessed value will stay close to what you paid, and the gap will shrink as the market moves.

Can I reduce my property tax bill?

You cannot reduce the 1% base rate—that is set statewide. You can appeal your assessed value if you believe it is wrong, and you may be may have access to to exemptions if you are a senior, disabled, or a veteran. Some counties offer Homeowners' Property Tax Exemptions that reduce your assessed value by a fixed amount. Contact your county assessor to learn what exemptions you might may have access to for.

What happens to my property taxes if I make improvements to my home?

Major improvements—adding a room, a deck, a pool, or a significant renovation—can trigger an increase in your assessed value. Routine maintenance like roof replacement, painting, or foundation repair does not. If you are planning a large project, ask your county assessor whether it will affect your assessed value before you start.

Do I have to pay property taxes every year?

Yes, property taxes are due every year as long as you own the property. They are usually billed twice a year, in two installments. If you have a mortgage, your lender may collect property taxes as part of your monthly payment and pay them on your behalf. If you own the home outright, you pay the county tax collector directly.

What if I disagree with my assessed value?

You can file an appeal with your county assessor or the county assessment appeals board. The important date is usually 30 days from when you receive your bill, but check your county's specific rules. You will need to provide evidence that the assessed value is wrong—comparable sales, an independent appraisal, or documentation of damage or major repairs. Contact your county assessor's office for the appeal form and process.