If you own property in California, understanding how property tax works can save you thousands every year. Property tax funds essential local services such as schools, fire departments, and roads.
Knowing how your tax is calculated helps you budget better and ensure you’re not overpaying.
What Is Property Tax in California?
Property tax is a local tax collected by your county’s tax assessor. It’s based on your property’s value and supports community services.
Under Proposition 13, California limits the property tax rate to 1% of your property’s assessed value, plus any voter-approved local taxes or assessments.
For example, if your home is valued at $700,000 and your county’s combined tax rate is 1.15%, your total yearly property tax would be $8,050.
Formula to Calculate Property Tax
The basic formula is: Property Tax = (Assessed Value × Tax Rate) + Local Assessments. Your assessed value is usually the purchase price of your home and can only increase by up to 2% per year unless you sell or make major improvements.
The base tax rate in California is 1%, but local additions for schools or bonds can bring it up to around 1.25%. Local assessments may include charges for lighting, community facilities, or utilities.
Property Tax Example (2025)
Let’s say you buy a home in San Diego County in 2025 for $800,000. With a county rate of 1.18%, your annual tax would be $9,440.
If there are $200 worth of local assessments, your total property tax becomes $9,640. You can confirm your local rate through the official California State Board of Equalization (BOE) website.
Due Dates for Property Tax Payments
California property taxes are paid in two installments every year. The first installment is due on November 1 and becomes delinquent after December 10.
The second installment is due on February 1 and becomes delinquent after April 10. If you miss the deadlines, a 10% penalty applies automatically.
How to Check Property Tax Details Online
Each county in California offers an online portal where homeowners can check their parcel number (APN), assessed value, and payment history.
For instance, you can visit assessor.lacounty.gov (Los Angeles County), sdttc.com (San Diego County), or ocgov.com (Orange County). These websites help you manage your tax bills easily from home.
Ways to Lower Your Property Tax Bill
You can reduce your property tax legally through several methods. First, apply for the Homeowners’ Exemption, which reduces your home’s assessed value by $7,000, saving around $70–$100 per year.
Second, file an assessment appeal if you believe your property’s assessed value is too high—provide evidence like recent comparable sales or an independent appraisal.
Third, verify that your property’s assessed value hasn’t increased by more than 2% annually unless new construction or sale occurred. Lastly, check if you qualify for special exemptions such as senior, disabled, or veteran relief programs offered by your local assessor’s office.
Reassessment Rules and Proposition 13
When you sell or make major improvements to a property, it gets reassessed based on its current market value.
Proposition 13, passed in 1978, ensures that property taxes remain stable and predictable by capping annual increases at 2%. This helps long-term homeowners manage costs even as real estate prices climb.
What Happens If You Don’t Pay Property Tax
If property tax remains unpaid past the deadline, the county adds a 10% penalty. Continued non-payment for more than five years may lead to a tax-default sale,
where your property could be auctioned by the county to recover dues. Setting up automatic payments or reminders can help you stay on track.
How Property Tax Relates to Other California Taxes
When planning your yearly finances, it’s smart to consider other taxes too—like your California income tax rate or local sales tax.
Understanding how these interact with property tax gives you a clearer picture of your total expenses in California.