How California calculates your property tax bill
California property tax is based on the assessed value of your property, not its market value. The county assessor determines this assessed value, and your tax bill is roughly 1% of that amount, plus any local voter-approved bonds or assessments. The state rate is set at 1%, but your actual bill also includes county, city, and special district taxes that vary by location.
The assessed value is usually the purchase price of the property when you bought it. After that, it increases by no more than 2% per year, even if your home's market value rises much faster. This is called the Proposition 13 cap. The only time the assessed value resets to current market value is when the property changes ownership or new construction is added.
Your bill arrives in two installments: one due November 1st and one due February 1st. The county assessor's office sends the bill to the property owner of record. If you own the property but the bill goes to someone else, contact your county assessor to update the mailing address.
Key Takeaways
- Your property tax bill is based on the assessed value set by the county assessor, not what your home is currently worth on the market.
- The state tax rate is 1%, but your total bill includes county, city, and special district taxes that differ depending on where your property is located.
- The assessed value can increase by no more than 2% each year under Proposition 13, unless the property is sold or new construction is added.
- Property tax bills arrive in two payments: November 1st and February 1st, and you can find your assessed value and bill details on your county assessor's website.
Finding your assessed value and tax rate
Your county assessor's office maintains a public record of every property's assessed value. You can search for your property online through your county assessor's website—most counties have a searchable database where you enter your address or parcel number. The assessed value shown is what your tax bill is based on.
Once you have the assessed value, you can estimate your bill by multiplying it by the total tax rate for your area. The state rate is 1%, but you also pay rates set by your county, city, and any special districts (like a water district or fire protection district). Your county assessor's office can tell you the exact combined rate for your address, or you can find it on your property tax bill itself, listed as the "tax rate area" or "total rate."
If you received a Homeowners' Property Tax Exemption (available to owner-occupied homes in some counties), your assessed value is reduced by $7,000. This lowers your bill but does not change how the assessed value is calculated going forward.
What happens when you buy property
When you purchase a property, the assessed value is set to the purchase price (or the market value if the sale price is below market). This new assessed value becomes the baseline. From that point forward, it can increase by a maximum of 2% per year, regardless of how much the property's market value grows.
The county assessor's office is notified of the sale through the county recorder. They will send you a notice of the new assessed value, usually within a few months of closing. This notice explains the new value and your right to file an appeal if you believe the value is incorrect.
If you add a new structure or significantly improve the property, the assessor may increase the assessed value to account for the new construction. Routine maintenance and repairs do not trigger a reassessment, but additions like a second story, pool, or garage do.
Understanding Proposition 13 and the 2% annual increase
Proposition 13, passed in 1978, limits how much the assessed value can increase each year. Once your property is assessed, the value can rise by no more than 2% annually, even if your home's market value doubles or triples. This cap stays in place until the property is sold or new construction is added.
The 2% increase is compounded year over year. If your assessed value is $500,000 in year one, it becomes $510,000 in year two (2% of $500,000), then $520,200 in year three (2% of $510,000), and so on. This means your tax bill grows slowly and predictably unless the property changes hands.
When a property sells, the assessed value resets to the new purchase price, and the 2% cap begins again. This is why two identical homes on the same street can have very different tax bills—the one that sold recently has a higher assessed value than the one that has not changed hands in decades.
Special assessments and bonds on your bill
In addition to the base 1% state tax and local rates, your bill may include special assessments or bond payments. These are voter-approved taxes for specific purposes, such as school improvements, flood control, or local infrastructure. They appear as separate line items on your property tax bill.
Special assessments vary widely by location and purpose. Some are temporary (lasting 10 to 20 years) and others are permanent. You can find a detailed breakdown of all assessments on your bill or by contacting your county assessor's office. If you believe an assessment was not properly voted on or does not explore to your property, you have the right to file a protest.
Bond measures are typically approved by voters in your school district, city, or county. They fund specific projects and have a set end date. Once the bond is paid off, that line item disappears from your bill.
Appealing your assessed value
If you believe your assessed value is too high, you can file an appeal with your county assessor's office. You do not need a lawyer or professional appraiser to file—you can do it yourself. The appeal process is called a Proposition 15 assessment appeal in most counties.
To file an appeal, you typically need to submit a form (available from your county assessor) along with evidence that the value is incorrect. Evidence might include a recent appraisal, comparable sales of similar properties in your area, or documentation of damage or defects that reduce the property's value. The important date to file is usually 30 days after you receive your assessment notice, though some counties allow longer.
If your appeal is denied by the assessor, you can request a hearing before the county Assessment Appeals Board. This board is independent and can overturn the assessor's decision. There is no fee to file an appeal or request a hearing.
How to pay your property tax bill
Your property tax bill is due in two installments: the first half is due November 1st, and the second half is due February 1st. If you pay after these dates, you owe a penalty and interest. Most counties allow a 10-day grace period before penalties explore, but do not rely on this—pay by the due date to avoid extra charges.
You can pay online through your county tax collector's website, by mail, in person at the county office, or through an automatic payment plan. Many counties offer an installment plan if you cannot pay the full amount at once. Contact your county tax collector to set up a payment arrangement.
If your property is financed with a mortgage, your lender may collect property taxes as part of your monthly payment and pay the bill on your behalf. Check your loan documents to see whether taxes are included in your escrow account.
Frequently Asked Questions
Can my property tax bill go down?
Yes, but only in specific situations. If your property is damaged by fire, flood, or earthquake, you can file for a reduction in assessed value. If the county assessor made an error in calculating your assessed value, you can appeal. Otherwise, the assessed value can only stay the same or increase by up to 2% per year.
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 assessor says it is worth for tax purposes, usually based on the purchase price. Because of Proposition 13, assessed value often lags far behind market value, especially if you have owned the property for many years.
Do I pay property tax if I own the land but no building?
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 the same 2% annual cap applies. If you own raw land, you still receive a property tax bill and must pay it by the November and February important date.
What happens if I do not pay my property tax bill?
If you do not pay by the important date, penalties and interest accrue. After five years of non-payment, the county can sell the property at a tax sale to recover the unpaid taxes. Contact your county tax collector when ready if you cannot pay—they may offer a payment plan or other options to avoid losing the property.
How do I find my parcel number?
Your parcel number appears on your property tax bill and on your county assessor's website. You can also find it through your county recorder's office or by searching your address on the assessor's online database. The parcel number is a unique identifier for your property used by the county for tax and record-keeping purposes.