How Much Is Property Tax in California
California property tax is capped at 1% of your home’s assessed value, plus any local bonds and special assessments that voters approved. On average, homeowners paid an effective rate of 0.70% of their home’s market value in 2024, about $700 a year per $100,000. That ranks California 32th among the 50 states (Tax Foundation).
Key facts
- The base rate is capped at 1% of assessed value (California Constitution, Art. XIII A).
- Assessed value rises no more than 2% a year until the home is sold or newly built on.
- The homeowners exemption takes $7,000 off the taxable value of the home you live in (Board of Equalization).
- Texas homeowners paid about 2 times California’s effective rate in 2024 (Tax Foundation).
How Proposition 13 Works
Proposition 13, approved by voters on June 6, 1978, taxes your home on what you paid for it, not on what it is worth now. When you buy a home or build on it, the county assessor sets its value at the purchase price or the cost of the new construction. After that the assessed value can rise with inflation, but by no more than 2% a year, however fast market prices climb (California Constitution, Art. XIII A, Sec. 2).
That is why two identical homes on the same street can have very different bills. The illustration below uses round, made-up prices and the 1% base rate only. Real bills also include local bonds and assessments.
The longer you own, the wider the gap tends to grow. When market prices rise faster than 2% a year, a long-time owner’s assessed value falls further behind the market, and a new buyer is assessed at today’s price. When prices fall, the assessor can lower a value to reflect the decline (Art. XIII A, Sec. 2(b)).
California Homeowners Exemption
If the home is your main residence on January 1, you can take $7,000 off its taxable value, which saves about $70 a year at the 1% rate. You file once with your county assessor. File by February 15 to get the full exemption for that year (Board of Equalization).
What Proposition 19 Changed
Proposition 19, approved November 3, 2020, made it easier for some owners to keep a low tax base when they move, and harder to pass one to children. The Board of Equalization’s comparison charts lay out both halves (Board of Equalization).
The $1,044,586 limit applies to transfers from February 16, 2025 to February 15, 2027; it is adjusted every two years.
What to do, by situation
Open the one closest to yours. This is general information, not tax advice.
I just bought a home and live in it
- File the homeowners exemption with your county assessor by February 15.
- The county assessor sets the home's assessed value at your purchase price.
I am 55 or older and want to move
- Under Prop 19 you can move your tax base to a new home anywhere in California, up to 3 times.
- Buy the new home within 2 years of selling the old one, and file a claim with your county assessor.
My parents want to leave me their house
- The low tax base carries over only if you make it your main home.
- Market value above the tax value plus $1,044,586 is added to the assessment.
- A rental or second home from your parents is reassessed.
California vs. Texas Property Tax
Texas homeowners paid about 2 times California’s effective rate in 2024. Texas has no state income tax, and local property taxes pay for its schools, cities and counties. Texas limits a homestead’s taxable value increase to 10% a year, against California’s 2%, and offers a $140,000 school homestead exemption against California’s $7,000.
| Category | Value |
|---|---|
| Texas | 1400 |
| California | 700 |
Effective rate on owner-occupied homes, 2024, times $100,000. Source: Tax Foundation, from Census American Community Survey data.
- 2% vs. 10%
- yearly cap on a homestead's assessed value, California vs. Texas
- 32 vs. 7
- rank among states by effective rate, 1 is highest
- $7,000
- California homeowners exemption, vs. $140,000 for Texas school taxes
See the Texas property tax guide for the homestead exemption and how to protest an appraisal there.
California Property Tax Questions
How much is property tax in California?
The base rate is 1% of your home’s assessed value, set by Proposition 13, plus any local bonds and special assessments voters approved. Homeowners paid an average effective rate of 0.70% of market value in 2024, about $700 a year per $100,000, according to the Tax Foundation.
How does Proposition 13 work?
Your home is assessed at its purchase price. After that, the assessed value can rise no more than 2% a year, however fast market prices climb, until the home is sold or newly built on. The tax is capped at 1% of that value plus voter-approved debt.
What is the California homeowners exemption?
It takes $7,000 off the taxable value of the home you live in on January 1, which saves about $70 a year at the 1% rate. You file once with your county assessor, by February 15 for the full exemption.
What did Proposition 19 change?
Homeowners 55 and older, severely disabled homeowners and wildfire or disaster victims can move their tax base to a replacement home anywhere in California, up to 3 times for those 55 and older. Parents can still pass a family home to children at the old tax base only if a child lives in it, and only up to the base value plus about $1.04 million.
What You Can Do
- Check that your homeowners exemption is on file with your county assessor.
- Read your bill’s line items. Bonds and special assessments added by local voters appear on top of the 1% base.
- Vote on local bond measures. They are the part of your bill that local voters control.
- Plan ahead for a family home. If you expect to inherit or pass on a house, read the Prop 19 rules first.