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

California has one of the lowest property tax rates in the country. The state-level rate is a flat 1% of your property's assessed value. That 1% goes to your county assessor, county treasurer, schools, and other local services. On top of that base rate, your county or city may add special assessments — usually for schools, fire districts, or infrastructure — that voters approved in local elections. These additions vary widely by location, so two homes worth the same amount can have different total tax bills depending on where they sit.

The assessed value is not the same as the market value. When you buy a home, the county assessor sets the assessed value at your purchase price. After that, it increases by a maximum of 2% per year, even if your home's market value climbs faster. This is called the Proposition 13 cap, and it is why long-time homeowners often pay much less in property tax than new buyers in the same neighborhood.

Key Takeaways

  • California's base property tax rate is 1% of assessed value, which is lower than most states, but local assessments can add 0.1% to 0.5% or more depending on your location.
  • Your assessed value is locked at your purchase price and can only rise 2% per year under Proposition 13, regardless of how much your home's market value increases.
  • When you buy a home, the county assessor reassesses it at the new purchase price, which usually raises your property tax bill significantly.
  • You can appeal your assessed value if you believe it is wrong, and the process is free through your county assessor's office.
  • Special assessments for schools, bonds, and local improvements appear as separate line items on your property tax bill and vary by neighborhood.

How the 1% base rate breaks down across services

The 1% you pay does not go to one place. Your county assessor's office distributes it among several recipients: the county general fund, schools, special districts (fire, water, library), and other local agencies. The exact split depends on your location and what districts serve your property. A home in one county might send 0.35% to schools and 0.15% to the county, while a home in another county sends 0.40% to schools and 0.10% to the county.

You can see the breakdown on your property tax bill, which arrives once a year (usually in November for taxes due in December and April). The bill lists the base 1% and then itemizes every special assessment or bond measure added on top. If you do not understand a line item, your county tax assessor's office can explain what it funds and when it expires.

Why your assessed value matters more than the rate

Because California caps assessed value growth at 2% per year, the assessed value is what actually determines how much you pay. A home purchased for $500,000 in 2010 might have a current market value of $800,000, but its assessed value would be around $660,000 (accounting for the 2% annual cap). That same home bought today for $800,000 would have an assessed value of $800,000. Both homes pay 1%, but the new buyer pays roughly $1,400 more per year in property tax.

When you sell your home, the new owner's assessed value resets to the purchase price. This is called a reassessment. If you buy a home for less than its market value (rare, but possible in a declining market), your assessed value starts at that lower purchase price. If you inherit a home, the assessed value usually stays the same unless you change the title or rent it out, depending on the circumstances and whether you may have access to for certain exemptions.

Local assessments and bonds that add to your bill

On top of the 1% base rate, your county or city can impose special assessments and bond measures. These are approved by local voters and fund specific projects: school improvements, fire station equipment, water system upgrades, or flood control. Some are temporary (lasting 10 or 20 years) and some are permanent. A property in a school district that recently passed a bond measure might pay an extra 0.15% to 0.30% in property tax for that bond alone.

These assessments appear as separate line items on your bill, and each one should show the purpose, the rate, and the expiration date (if any). If you move to a different neighborhood, your assessments change because you enter a different set of local districts. This is why two homes worth the same amount in the same city can have different total property tax bills — they may be in different school districts or fire districts with different approved measures.

How reassessment works when you buy a home

When you purchase a home, the county assessor automatically reassesses it at your purchase price. You do not have to do anything — the assessor's office records the sale and updates their records. The new assessed value becomes effective on the next assessment roll, which is usually January 1 of the following year. Your first property tax bill as the owner will reflect the new assessed value.

If you buy a home in mid-year, you may receive a supplemental bill for the remainder of that fiscal year, calculated at the new assessed value. This bill arrives separately from your regular annual bill and covers the months between your purchase and the next January 1. After that, you receive one bill per year in November.

Appealing your assessed value if you think it is wrong

If you believe your assessed value is too high, you can file an appeal with your county assessor's office. The process is free. You have until the important date set by your county (usually 30 days after you receive your bill, but check your county's rules) to file a formal appeal. You will need to provide evidence that the assessed value is incorrect — comparable sales in your neighborhood, a recent appraisal, or documentation of property damage or defects that lower the value.

Some counties allow informal reviews before a formal appeal. An informal review is a conversation with an assessor's representative where you present your case. If you disagree with the result, you can then file a formal appeal, which may go to a county assessment appeals board. If you lose at the county level, you can appeal to the State Board of Equalization, though this is rare and usually involves significant discrepancies. Many homeowners find that a professional appraisal ($300 to $500) is worth the cost if they believe their assessed value is substantially wrong.

Exemptions and deferrals that can lower your bill

California offers several exemptions that reduce your assessed value or defer payment. The homeowner's exemption reduces your assessed value by $7,000 (as of 2024, though this amount can change). You must own and live in the home as your primary residence to may have access to. The exemption is not automatic — you must file for it with your county assessor, usually within a specific window after you buy the home.

Senior citizens, disabled persons, and veterans may may have access to for additional exemptions or property tax deferrals. The Senior Citizen Property Tax Deferral Program allows homeowners 61 and older to defer property taxes until the home is sold or transferred. You must meet income limits and own the home outright or have a small mortgage. Contact your county assessor's office to learn which programs you may may have access to for and what documents you need to explore.

Frequently Asked Questions

What is the difference between my home's market value and its assessed value?

Market value is what your home would sell for today. Assessed value is what the county uses to calculate your property tax, and it is locked at your purchase price, rising only 2% per year. If you bought your home 10 years ago, your assessed value is much lower than its current market value, which is why your property tax bill is lower than a new buyer's would be for the same home.

Do I pay property tax on land I own but do not build on?

Yes. Vacant land is assessed and taxed the same way as improved property. The assessed value is based on the land's market value, and you pay 1% of that value plus any local assessments. If you plan to build on the land, the assessed value may increase once construction is complete.

Can my property taxes go down if my home's value drops?

Not automatically. Your assessed value is capped at 2% annual growth, so it does not drop when the market falls. However, if your home's market value falls significantly and stays low for several years, you can appeal your assessed value and provide evidence (like a recent appraisal or comparable sales) that it is too high. A successful appeal can lower your assessed value and your tax bill.

What happens to property taxes if I inherit a home?

If you inherit a home and the title transfers to you, the assessed value usually stays the same unless you change how the property is used or rented out. However, if you inherit a home from someone other than a spouse or direct descendant, or if you later sell it, reassessment rules may explore. Contact your county assessor to understand how inheritance affects your specific property.

Are property taxes the same everywhere in California?

The base 1% rate is the same statewide, but the total you pay varies because of local assessments and bonds. A home in one county might have a total effective rate of 1.2%, while the same home in another county would be 1.35%. Check your property tax bill or your county assessor's website to see the breakdown for your specific location.