California

What You Need to Know About Property Taxes in California

Unlike Texas, California does have a statewide property tax system governed largely by Proposition 13 (1978).
Local governments (counties, cities, school districts, and special districts) levy property taxes, but rates are capped by state law.

The general property tax rate is capped at 1% of the property’s assessed value.
Voter-approved bonds, special assessments, and fees may increase the total bill.
This makes California’s average effective tax rate about 0.7% – 1.1%, lower than the national average.

Property taxes = (Assessed Value × 1%) + Voter-Approved Bonds & Assessments.
Assessed Value is based on your purchase price (or “base year value”) under Proposition 13.
Increases are capped at no more than 2% per year, regardless of market fluctuations, until the property is sold or newly constructed.

Caps the general tax rate at 1%.
Limits assessed value increases to 2% per year.
Resets the assessed value to market value only when the property changes ownership or new construction occurs.

January 1: Lien date – property values are assessed for the upcoming tax year.
July 1: Beginning of the fiscal tax year.
November 1: First installment of secured property taxes due.
December 10: First installment delinquent if unpaid.
February 1: Second installment due.
April 10: Second installment delinquent if unpaid.

Homeowners’ Exemption: Reduces taxable value by $7,000 for primary residences.
Disabled Veterans’ Exemption: Up to $150,000 off assessed value depending on disability rating.
Propositions 58 & 193: Parent-to-child and grandparent-to-grandchild transfers may exclude reassessment.
Proposition 19 (2021): Allows homeowners over 55, severely disabled, or victims of natural disasters to transfer their tax base to a new home (with certain limits).

Homeowners can appeal their assessed value if they believe it is too high.
Appeals are filed with the County Assessment Appeals Board.
Evidence may include comparable sales, appraisal reports, or condition-related issues.
Many homeowners choose us, Icon, to navigate this process.

Property taxes are paid in two installments (November/December and February/April).
Late payments incur a 10% penalty, plus additional fees if taxes remain unpaid.
Some counties offer payment plans for qualifying taxpayers facing financial hardship.

California operates on a fiscal year (July 1 – June 30).
Assessments, bills, and payments occur annually, and homeowners must stay on top of deadlines to avoid penalties.

Search your property to uncover key assessment insights and explore potential tax-saving opportunities.