What California Property Tax Is

Property tax in California is an annual tax on real estate — land and buildings — based on the assessed value of the property. You pay it to your county assessor's office, and the money funds local schools, fire departments, libraries, and other public services in your area. If you own a home, rental property, or commercial building in California, you owe property tax unless the property qualifies for an exemption.

The tax rate is set by your county and typically falls between 0.76% and 1.25% of the property's assessed value, though some counties are slightly higher or lower. The assessed value is not the same as what you could sell the property for — it is calculated under Proposition 13, a 1978 law that limits how much the assessment can increase each year.

Key Takeaways

  • California property tax is based on assessed value, not market value, and increases by no more than 2% per year under Proposition 13 unless the property is sold.
  • Your county assessor determines the assessed value, and you receive a bill each year showing the amount owed, usually due in two installments.
  • If you disagree with the assessed value, you can file a Proposition 8 appeal with your county assessor's office within 30 days of receiving your bill.
  • Some properties, including primary residences of seniors and disabled persons, may may have access to for exemptions or deferrals that reduce or delay the tax owed.
  • Property tax bills are public record, and you can look up any property's assessed value and tax amount through your county assessor's website.

How Assessed Value Is Determined

When you buy property in California, the county assessor sets an initial assessed value based on the purchase price. This becomes your base value. Each year after that, the assessed value can increase by no more than 2%, even if the property's market value rises much faster. This is the core of Proposition 13 — it protects long-term owners from sudden tax jumps.

If you sell the property, the assessed value resets to the new purchase price, and the 2% annual increase starts over. This is why two identical houses on the same street can have very different property tax bills — the one that sold recently has a higher assessed value than the one owned for decades.

The assessor's office uses public records like sales data, building permits, and property characteristics to set and adjust values. If you believe the assessed value is wrong — for example, if it does not match similar properties in your area or if you made improvements that were incorrectly recorded — you have the right to challenge it.

Property Tax Rates and Your Annual Bill

The property tax rate in California is set by your county and typically ranges from 0.76% to 1.25% of assessed value. Some counties are slightly outside this range, but the variation is small statewide. The rate is applied to your assessed value to calculate the annual tax owed.

Your county assessor's office sends you a property tax bill, usually twice a year — one installment in November and one in February. The November bill covers July through December of that year, and the February bill covers January through June of the following year. If you own the property on January 1, you owe tax for that full fiscal year, even if you sell it later.

The bill shows the assessed value, the tax rate, the amount owed, and the due date. Payments are typically due by December 10 for the first installment and April 10 for the second, though exact dates vary by county. If you pay late, penalties and interest accrue quickly — usually 10% of the unpaid amount plus interest.

Challenging Your Assessed Value

If you believe your assessed value is incorrect, you can file a Proposition 8 appeal with your county assessor's office. This is different from a Proposition 13 appeal and is based on the current market value of the property, not the purchase price. You have 30 days from the date you receive your property tax bill to file.

To file, contact your county assessor's office directly — you do not need a lawyer or paid representative, though you can hire one if you choose. Bring evidence that supports a lower value: recent appraisals, comparable sales of similar properties in your area, photographs showing damage or needed repairs, or documentation of code violations. The assessor will review your evidence and either adjust the value or deny the appeal.

If you disagree with the assessor's decision, you can appeal to the county Assessment Appeals Board, which is independent of the assessor's office. This board hears disputes and can order a value change. The process is free and does not require an attorney, though many people choose to hire one for complex cases.

Exemptions and Deferrals

Some California property owners may have access to for exemptions that reduce or eliminate property tax. The most common is the homeowner's exemption, which reduces the assessed value by $7,000 for your primary residence. You must own the property and live in it as your main home to may have access to. The exemption is not automatic — you must file a claim with your county assessor's office, usually within a specific window after you buy the property.

Other exemptions include those for seniors (age 65 or older), disabled persons, and veterans. Some properties used for religious, educational, or charitable purposes also may have access to. Exemptions vary by county, so check with your local assessor's office to see what you might may have access to for.

If you are a senior or disabled homeowner, you may also may have access to for a property tax deferral, which allows you to delay paying property tax until the property is sold or transferred. This is different from an exemption — you still owe the tax, but you do not have to pay it when ready. Deferral programs have income and property value limits that vary by county.

What Happens If You Do Not Pay

If your property tax bill goes unpaid, penalties and interest begin to accumulate. After five years of non-payment, the county can place a lien on the property and eventually sell it at a tax sale to recover the unpaid taxes. This is a serious consequence — you can lose the property entirely.

If you are struggling to pay, contact your county tax collector's office when ready. Some counties offer payment plans or hardship deferrals. If you are a senior or disabled person, you may may have access to for a deferral program. Acting early gives you more options than waiting until a lien is filed.

Looking Up Property Tax Information

Your county assessor's office maintains public records of all property assessments and tax amounts. You can look up any property — your own or anyone else's — through your county assessor's website. Most counties allow free online searches by address or parcel number, and you can see the assessed value, the tax rate, and the annual tax bill.

If you do not have internet access or prefer to search in person, you can visit the assessor's office during business hours. Staff can help you find the information and answer questions about how the assessment was calculated. Some counties also offer phone or email support.

Frequently Asked Questions

What is the difference between assessed value and market value?

Assessed value is what the county uses to calculate your property tax, and it increases by no more than 2% per year under Proposition 13. Market value is what your property could sell for today. In a rising real estate market, market value often grows much faster than assessed value, so long-term owners pay less tax than recent buyers of similar properties.

Do I have to pay property tax if I own the land but no building?

Yes. Property tax applies to land and any structures on it. Vacant land is taxed the same way as improved property — based on its assessed value and your county's tax rate. The assessed value of vacant land depends on location, size, zoning, and development potential.

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

You may be able to deduct property tax on your federal return, but there is a limit. The federal government caps the total deduction for state and local taxes (including property tax, income tax, and sales tax combined) at $10,000 per year. Consult a tax professional about your specific situation.

What happens to property tax if I inherit a house?

When you inherit property, the assessed value does not automatically reset to market value — it stays at the previous owner's assessed value and continues to increase by no more than 2% per year. However, if you later sell the inherited property, the assessed value resets to the new purchase price when the new owner takes title.

How do I find out my county's property tax rate?

Your county assessor's office publishes the tax rate each year, and it appears on your property tax bill. You can also find it on your county assessor's website or by calling the assessor's office directly. The rate is the same for all properties in your county, though some special districts may add small amounts on top of the base rate.