Property tax in California is an annual tax on real estate based on the assessed value of your home or land

California property tax is a yearly bill you receive from your county assessor for owning real estate. The tax amount depends on the assessed value of your property — not the market value, but a value set by your county assessor's office. You pay this tax to your county, and the money funds local schools, fire departments, roads, and other services in your area.

The tax rate in California is set by state law at 1% of the assessed value, plus any local voter-approved additions. This means if your home is assessed at $500,000, you would owe roughly $5,000 per year in base property tax, though your actual bill may be higher or lower depending on local bonds and special assessments in your area.

Property tax bills arrive once or twice per year depending on your county. Most counties send bills in two installments — one in the fall and one in the spring. If you have a mortgage, your lender may collect property tax as part of your monthly payment and pay the county on your behalf through an escrow account.

Key Takeaways

  • California property tax is 1% of your assessed value plus any local voter-approved additions, and you owe it every year you own real estate.
  • Your county assessor determines the assessed value, which is usually the purchase price when you buy, then increases by up to 2% per year unless you sell.
  • Property tax bills arrive once or twice per year from your county tax collector, and you can pay in full or in two installments.
  • If you have a mortgage, your lender typically collects property tax through escrow and pays the county for you each year.
  • California offers property tax reductions for seniors, disabled homeowners, and certain other situations through the Homeowners' Property Tax Exemption.

How the assessed value is determined and when it changes

When you purchase a home in California, the county assessor sets an 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 your home's market value rises much faster. This is called the Proposition 13 protection, and it keeps long-term homeowners' tax bills from skyrocketing.

The assessed value resets to market value only when the property sells. If you buy a home for $600,000, that is your starting assessed value. If the home is worth $800,000 five years later but you have not sold it, your assessed value is still around $660,000 (the original price plus 2% per year). When you sell, the new owner's assessed value becomes the new purchase price.

Your county assessor can also reassess your property if you make major improvements — adding a room, a pool, or a second story. Routine maintenance does not trigger reassessment, but significant additions do. You can request a reassessment if you believe the assessed value is wrong, though the process varies by county.

What is included in your property tax bill

Your property tax bill includes the base 1% tax plus any additional amounts approved by local voters. These additions are called voter-approved bonds and assessments. A school district might have passed a bond measure to fund new buildings, or your city might have a special assessment for street repairs. These appear as line items on your bill.

Your bill also shows any exemptions you receive. The Homeowners' Property Tax Exemption reduces the assessed value by $7,000 for owner-occupied homes, which lowers your tax bill by roughly $70 per year. Senior homeowners and disabled homeowners may receive larger exemptions depending on their income and situation.

If you own commercial property or rental property, your bill will not include the homeowners' exemption. Commercial and rental properties are taxed at the full assessed value without this reduction.

How to pay your property tax bill

Your county tax collector sends property tax bills to the address on record with the assessor's office. Most California counties mail bills twice per year — typically in October or November for the fall installment, and in April or May for the spring installment. Each bill is due 30 days after it is mailed, though the exact important date varies by county.

You can pay by mail, online through your county's tax collector website, by phone, or in person at the tax collector's office. Many counties offer automatic payment options where you can set up a monthly or annual payment plan. If you pay late, you will owe a penalty and interest, which begins accruing 10 days after the due date.

If your mortgage lender handles property tax through escrow, you do not receive a separate bill. Your lender collects the tax amount with your monthly mortgage payment and pays the county directly. You can still request a copy of your bill from the tax collector to verify the amount.

Homeowners' exemptions and reductions

California offers a Homeowners' Property Tax Exemption that reduces the assessed value of owner-occupied homes by $7,000. This is automatic for most homeowners, but you must file a claim form with your county assessor if you did not receive the exemption when you purchased your home. The form is called the Claim for Homeowners' Exemption, and you can file it any time you own the home.

Senior homeowners and disabled homeowners may receive larger exemptions. The Senior Exemption and Disabled Persons Exemption can reduce your assessed value by up to $500,000 if you meet income and age or disability requirements. These require a separate process and proof of income. Income limits vary by county but are generally around $40,000 to $60,000 per year for a single person.

Disabled veterans may also receive a property tax exemption. The amount depends on the degree of disability and ranges from partial to full exemption. You will need to file a claim with your county assessor and provide proof of disability rating from the Department of Veterans Affairs.

What happens if you do not pay property tax

If you do not pay your property tax bill by the due date, penalties and interest begin to accrue. California charges a 10% penalty if you pay within 10 days of the due date, and an additional 1.5% per month in interest after that. The longer you wait, the larger your debt becomes.

If property tax remains unpaid for five years, the county can foreclose on your home and sell it to recover the unpaid taxes. This is called a tax deed sale. Before foreclosure happens, the county will send you notices and offer you opportunities to pay, but you should treat a property tax bill as a serious obligation.

If you are struggling to pay, contact your county tax collector's office. Some counties offer payment plans or hardship programs. You can also look into whether you may have access to for a senior or disabled exemption, which would lower your bill going forward.

Frequently Asked Questions

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

Yes, but with limits. Federal law allows you to deduct up to $10,000 per year in state and local taxes combined — this includes property tax, income tax, and sales tax. Most California homeowners hit this cap with property tax and state income tax alone, so the property tax deduction may not provide additional benefit. Consult a tax professional about your specific situation.

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 tax bill, and it is usually much lower because of Proposition 13. Your assessed value only resets to market value when you sell the property. This is why long-term homeowners often pay much less property tax than new buyers in the same neighborhood.

Do I owe property tax if I rent out my home?

Yes. Rental properties are subject to property tax just like owner-occupied homes. You do not receive the Homeowners' Property Tax Exemption, so you pay tax on the full assessed value. You can deduct property tax as a business expense on your federal tax return if you rent the property.

How do I find out my assessed value?

Your county assessor's office maintains a public record of all assessed values. You can search by address on your county assessor's website, or visit the office in person. Your property tax bill also shows the assessed value. If you believe the value is incorrect, you can file an appeal with your county assessor.

What happens to property tax when I inherit a home?

The assessed value does not change when you inherit a home — it stays at the previous owner's assessed value. However, if you later sell the home or make major improvements, the assessed value will be reassessed. If you move into the inherited home as your primary residence, you may be able to file for the Homeowners' Property Tax Exemption.