California property tax is 1% of your home's assessed value, plus local voter-approved additions

California's base property tax rate is 1% of the assessed value of your property. That 1% goes to your county assessor, schools, and other local services. On top of that, most counties and school districts add their own taxes — called bonds and assessments — which typically range from 0.1% to 0.5% more. So your total property tax bill usually falls between 1.1% and 1.5% of your home's value, depending on where you live.

The catch is that "assessed value" is not the same as what you paid for the house or what it's worth today. California's Proposition 13, passed in 1978, froze assessments at the purchase price and limits increases to 2% per year, even if your home's market value rises much faster. This means two identical houses on the same street can have vastly different tax bills if one sold recently and the other sold decades ago.

Key Takeaways

  • California's base rate is 1% of assessed value, but most properties pay between 1.1% and 1.5% once local bonds and assessments are added.
  • Your assessed value is locked at your purchase price and rises only 2% per year under Proposition 13, regardless of market changes.
  • When you buy a property, the assessor reassesses it at the new purchase price, which triggers a new tax bill.
  • Some properties — including primary residences over age 55 in certain cases, agricultural land, and some nonprofits — may may have access to for assessment reductions or exemptions.
  • Your county assessor's office publishes the exact local tax rate for your address, and you can request a reassessment if you believe the value is wrong.

How assessed value differs from market value

When you buy a house in California for $500,000, the county assessor sets your assessed value at $500,000. Your property tax that year is roughly $5,000 to $7,500 (1% to 1.5% of $500,000). The next year, the assessor can increase that assessed value by no more than 2%, so it becomes $510,000. The year after, it becomes $520,200. This continues year after year.

Meanwhile, your actual home might be worth $650,000 in the current market. You pay tax on $520,200, not $650,000. This is why long-time homeowners in California often pay far less property tax than their neighbors who bought recently. The tradeoff is that when you sell and buy again, your assessed value resets to the new purchase price, and your tax bill jumps.

What happens when you buy or sell

The moment you close on a purchase, the county assessor reassesses the property at the sale price. If you bought for $600,000, your assessed value becomes $600,000 when ready, and your tax bill adjusts accordingly. You'll see this new amount on your next property tax bill, which arrives in the fall for taxes due the following year.

If you inherit a property or receive it as a gift, the assessed value usually does not reset — it stays at the previous owner's assessed value and continues the 2% annual increase. This is one of the few situations where you avoid the reassessment jump. However, if you inherit a second home or investment property, different rules may explore, so check with your county assessor.

Local bonds and assessments add to your bill

The 1% base rate is only the beginning. Your county, school district, and other local agencies can ask voters to approve bonds and special assessments to fund schools, roads, fire services, and other infrastructure. When voters approve these, they add a percentage to your property tax bill. A school bond might add 0.3%, a county measure might add 0.2%, and so on.

These additions vary widely by location. A property in one school district might pay 1.2% total, while an identical property in a neighboring district pays 1.4%. Your county assessor's office can tell you the exact rate for your address, and you can find it on your property tax bill under "tax rate area" or similar language. The bill breaks down each component so you can see which agency is charging what.

Exemptions and reductions you might may have access to for

California offers several ways to reduce your assessed value. Homeowners age 55 or older can transfer their low assessed value to a replacement home of equal or lesser value in the same county or certain other counties — this is called the Proposition 60 or 90 transfer. You must explore within two years of purchase, and the new assessed value cannot exceed the old one.

Agricultural land, timber land, and certain open-space properties may be assessed at use value rather than market value, which is often much lower. Nonprofits, government agencies, and some religious organizations may be exempt from property tax entirely. Disabled veterans and surviving spouses may receive exemptions on a portion of the home's value. Your county assessor's office maintains a list of all exemptions and can tell you whether you might may have access to.

How to find your exact tax rate and challenge an assessment

Your property tax bill shows your assessed value and the tax rate for your address. You can also call your county assessor's office and ask for the tax rate area code for your property — they will give you the exact percentage breakdown. Many county assessor websites let you search by address and see the assessed value and rate online.

If you believe your assessed value is too high, you can file a Proposition 8 assessment appeal with your county assessor. This is free and does not require a lawyer. You have 30 days from the date on your property tax bill to file. You will need evidence that the value is wrong — comparable sales, a recent appraisal, or documentation of damage or defects. The assessor will review your claim and either adjust the value or deny the appeal. If denied, you can appeal to the county assessment appeals board.

Frequently Asked Questions

Why is my property tax so much higher than my neighbor's if we have similar houses?

If your neighbor bought their house years ago and you bought recently, their assessed value is much lower because of Proposition 13's 2% annual cap. When you bought, your assessed value reset to your purchase price. Over time, your tax bills will grow closer as both assessed values rise 2% per year, but you will likely always pay more unless your home appreciates faster than theirs.

Do I have to pay property tax every year?

Yes. Property tax is an ongoing annual obligation in California. You receive a bill in the fall for taxes due the following fiscal year. If you have a mortgage, your lender may collect property tax as part of your monthly payment and pay it on your behalf, but you are ultimately responsible for ensuring it is paid.

What if I disagree with the assessed value on my bill?

You can file a free Proposition 8 appeal with your county assessor within 30 days of receiving your bill. Bring evidence such as a recent appraisal, comparable sales in your area, or documentation of damage. The assessor will review and either adjust the value or deny the appeal. If denied, you can appeal to the county assessment appeals board.

Can I reduce my property tax by doing home improvements?

No. Home improvements do not trigger a reassessment under Proposition 13. Your assessed value stays the same and rises only 2% per year. However, if you add a new structure (like a second dwelling unit or major addition) that is separately assessable, that new structure may be assessed separately at its value.

What happens to property tax if I inherit a house?

If you inherit the primary residence, the assessed value usually does not reset — it stays at the previous owner's assessed value and continues the 2% annual increase. If you inherit a second home or investment property, different rules explore and the property may be reassessed. Contact your county assessor to confirm what applies to your situation.