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

California has a base property tax rate of 1%, set by Proposition 13 in 1978. This means if your home is assessed at $500,000, you pay $5,000 in base property tax per year. That 1% applies statewide — it does not change by county or city.

However, most California homeowners pay more than 1% because counties and local districts add their own taxes on top. These additions fund schools, fire departments, water districts, and other services. The total you owe depends on where your property sits and which local bonds have passed. In some areas, the total rate reaches 1.25% or higher.

Your assessed value also matters enormously. Under Proposition 13, your home is reassessed only when it sells. If you bought your house in 2010 for $300,000 and it is now worth $800,000, your taxes are still based on something close to $300,000 — not the current market value. This is why two identical homes on the same street can have vastly different tax bills.

Key Takeaways

  • The statewide base rate is 1%, but most counties add local taxes that push the total to 1.1% to 1.3% or more.
  • Your assessed value, not market value, determines your bill — and it only updates when you sell or build.
  • New construction is assessed at current market value, so new homes often have higher tax bills than older ones nearby.
  • You can find your exact rate and assessed value on your county assessor's website or your property tax bill.
  • Homeowners over 55 can transfer their old assessed value to a replacement home in some cases, keeping taxes lower.

How the 1% base rate works

The 1% is calculated on your property's assessed value, not what you paid for it or what it would sell for today. The county assessor determines this value, and it becomes your tax base. Each year, that base can increase by up to 2%, even if the property does not sell and the market does not move.

If you bought a house for $400,000 in 2015, your assessed value started at roughly $400,000. By 2024, it could have grown to around $480,000 through the annual 2% increases — even if the house is worth $700,000 on the open market. Your 1% tax is calculated on the $480,000, not the $700,000.

When you sell, the new owner's assessed value resets to the sale price. This is why a buyer paying $700,000 for that same house will suddenly owe taxes on $700,000, not $480,000. The jump can be substantial.

Local taxes and bonds added on top of the 1%

Counties, school districts, water agencies, and other local bodies can add their own property taxes. These are called voter-approved bonds or assessments, and they appear as separate line items on your tax bill. A typical county might add 0.1% to 0.3%, but this varies widely.

For example, your bill might show: 1.0% (state base) + 0.15% (county) + 0.08% (school district) + 0.02% (water district) = 1.25% total. Some areas are higher. Check your county assessor's website to see the exact breakdown for your address.

These local additions change over time as new bonds pass or old ones expire. A bond that funds school improvements might last 20 years, then disappear from your bill. A new fire district bond might appear. Your total rate is not fixed — it can shift by 0.05% or more in a single year.

Why new homes pay more tax than old homes nearby

A brand-new house and a 40-year-old house on the same block can have identical market values but very different tax bills. The new house is assessed at current market value. The old house was last assessed when it sold, possibly decades ago, and has only grown 2% per year since then.

If both houses are worth $800,000 today, the new one might be assessed at $800,000 and owe $8,000 in base tax. The old one, bought in 1990 for $200,000, might be assessed at around $350,000 and owe $3,500. The new owner pays more than double, even though the properties are identical.

This is a direct result of Proposition 13. It protects long-term owners from large tax jumps but creates a gap between what similar properties owe. New construction also triggers reassessment of any improvements — adding a second story or a pool will raise your assessed value.

Finding your specific tax rate and assessed value

Your property tax bill shows both your assessed value and your total tax rate. You can also find this information on your county assessor's website — search "[your county] assessor" plus "property search" or "look up property value." Most counties have a free online tool where you enter your address.

Your bill arrives in the fall (usually October or November) and is due in two installments: one in December and one in April. The bill lists the assessed value, the base 1% tax, and every local addition. If the numbers seem wrong, you can file a Proposition 8 appeal within 30 days of receiving your bill, arguing that the assessed value is too high.

If you cannot find your information online, call your county assessor's office directly. They can tell you your assessed value, your total rate, and when your property was last reassessed.

Proposition 19 and the 55-plus home transfer rule

Homeowners age 55 or older can transfer their old assessed value to a replacement home in the same county, under certain conditions. This is called the Proposition 19 transfer. If you sell a house you have owned for many years and buy a new one, you can keep your low assessed value — up to a point.

The replacement home must be of equal or lesser value. If your old house was assessed at $300,000 and you buy a new one for $500,000, your new assessed value starts at $300,000 (not $500,000), and you avoid a large tax jump. However, if the new house is worth less, your assessed value is capped at that lower amount.

You must file the transfer claim within three years of buying the replacement home. Rules vary slightly by county, so check with your county assessor before you sell to understand your options.

How reassessment works when you buy or build

Your property is reassessed whenever you purchase it or make significant improvements. A sale always triggers reassessment at the sale price. Adding a room, a deck, or a pool also triggers reassessment of that improvement — the assessor will increase your value by the cost of the addition.

Minor repairs and maintenance do not trigger reassessment. Replacing a roof, painting, or fixing a foundation does not change your assessed value. Only new construction or major structural changes do.

If you inherit a property, reassessment rules depend on your relationship to the previous owner. Spouses and direct descendants may be exempt from reassessment under Proposition 19. Other heirs will face reassessment. Consult your county assessor about your specific situation.

Frequently Asked Questions

What is the difference between assessed value and market value?

Market value is what your home would sell for today. Assessed value is what the county uses to calculate your taxes, and it only updates when you sell or build. In California, assessed value is usually much lower than market value because it grows only 2% per year, while markets move faster.

Can I lower my property tax bill?

You can file a Proposition 8 appeal if you believe your assessed value is too high — for example, if your home was damaged or the market dropped sharply. You must file within 30 days of receiving your bill. You cannot lower the 1% base rate, but you can challenge the value it is applied to.

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 use. If you plan to build, the land will be reassessed once construction begins.

What happens to my taxes if I rent out my house?

Converting a home to a rental does not trigger reassessment under California law. Your assessed value stays the same. However, if you sell the rental property later, the new owner will be assessed at the sale price, which is usually much higher.

Are there any property tax exemptions in California?

Yes. Churches, nonprofits, government buildings, and some other organizations are exempt. Homeowners do not receive a blanket exemption, but those over 65 with low income may may have access to for a property tax postponement program. Check your county assessor's office for details.