How Much is Property Tax in California? (2025 Complete Guide)

Owning a home in California comes with many financial responsibilities, and property taxes are one of the biggest ones. Whether you’re a first-time buyer, a seasoned homeowner, or thinking about refinancing, understanding California property taxes is key to managing your mortgage and overall housing costs.

In this 2025 guide, we’ll break down how property taxes in California work, what affects your tax bill, and how you can save money. Plus, we’ll share expert strategies to keep your property tax costs under control.

California Property Tax Basics

The state of California has one of the most well-known property tax systems in the country, thanks to Proposition 13. Here’s what you need to know:

Base Property Tax Rate: 1% of your home’s assessed value (set at purchase price).
Annual Increase Cap: Assessed values can only increase by a max of 2% per year (unless there’s a sale or major remodel).
Additional Local Taxes & Bonds: Many counties and cities add extra fees for schools, infrastructure, and public services.

This means your total property tax bill may be slightly higher than 1%, depending on where you live.

How Property Taxes Are Calculated in California

The formula for California property tax is pretty simple:

🏠 Assessed Value of Property × Tax Rate = Annual Property Tax Bill

For example, if you buy a home for $500,000, your base property tax would be:

$500,000 × 1% = $5,000 per year

However, local assessments and fees can push the rate to around 1.1% – 1.25%, meaning your final bill might be closer to $5,500 – $6,250 per year.‍

Key note: Property tax bills are due in two installments—the first on November 1st and the second on February 1st (with deadlines of December 10th and April 10th, respectively).

Average Effective Tax Rates in California

While the base property tax rate is 1%, actual tax rates vary by county due to local assessments and fees. Here are some average effective property tax rates by county:

This means that if you own a $600,000 home in Los Angeles, your annual tax bill would be around $6,960.

Want to know your county’s exact tax rate? Use our interactive tax calculator below!

Key Factors Affecting Your California Property Tax

1. Location Variations

Property taxes vary widely depending on the county and city you live in. Some areas add extra taxes for schools, fire protection, and infrastructure improvements.

2. Property Characteristics

Your home’s tax rate is affected by:
✔ Property type (Single-family vs. Condo vs. Multi-unit)
✔ Age of the home (Older homes may have lower tax bases)
✔ Lot size and improvements (Adding a pool, ADU, or major remodel may trigger reassessment)

3. Special California Property Tax Programs

Homeowner Exemptions

California offers a $7,000 exemption for primary residences, which saves you about $70 per year on taxes.

Transfer Options (Prop 19 Explained)

If you're over 55, severely disabled, or a victim of a natural disaster, you may be able to transfer your low property tax rate to a new home under Prop 19.

Why Property Taxes Matter for Mortgage Planning

1. Escrow Account Implications

If you have a mortgage, your lender will likely collect property taxes as part of your monthly payment and hold them in an escrow account. This means:
✔ Higher monthly mortgage payments
✔ Less stress about annual tax bills

2. Tax-Saving Strategies

Want to keep your property taxes low? Try these strategies:
✅ Apply for all available exemptions
✅ Avoid triggering a reassessment (by keeping remodels small or using tax-advantaged transfer options)
✅ Challenge an unfair tax assessment if you think your home is overvalued

Estimate Your California Property Tax

Wondering how much your property tax bill will be? Use these tools to estimate your costs:

🔢 Interactive County Tax Calculator → Find out your local property tax rate.
📋 Current Assessment Lookup Tool → Check your home’s current assessed value.
📝 Exemption Application Assistance → Get help applying for homeowner exemptions & senior tax benefits.

Maximize Your California Home Investment!

Your property tax bill can affect your mortgage payments, home affordability, and long-term investment. That’s why it’s important to:

✔ Plan ahead for tax changes
✔ Use all available exemptions
✔ Work with tax-aware mortgage professionals

Get Your Free Tax Analysis Today!

🏡 Schedule a free consultation to understand how property taxes affect your mortgage & investment.

FAQs

1. What's the exact formula for CA property tax?

(Assessed Value × 1%) + Local Fees = Total Tax Bill

2. When are property taxes due in California?

• 1st installment: November 1st (Late after December 10th)
  
• 2nd installment: February 1st (Late after April 10th)
  

3. How often do property taxes increase?

Under Prop 13, your assessed value can only increase by 2% per year unless there’s a sale or major remodel.

4. Can I deduct CA property taxes on federal returns?

Yes, but the state and local tax (SALT) deduction is capped at $10,000 per year.

5. What triggers a property tax reassessment?

• Buying a home
  
• Remodeling that adds square footage or new structures
  
• Transferring ownership without qualifying for a Prop 19 exemption
  

6. How do I challenge my assessment?

You can file an assessment appeal with your county if you believe your home is overvalued.

7. Are there payment plans for property taxes?

Yes! Counties offer installment plans for homeowners struggling to pay.

8. Do landlords pay higher property taxes?

No—rental properties follow the same tax rules as primary residences.

9. How does Prop 19 affect inherited properties?

Prop 19 limits property tax transfers on inherited homes unless the heirs use it as their primary residence.

10. Why work with Equity Capital on tax-aware financing?

We help homeowners structure mortgages with property tax planning in mind—ensuring your total housing cost stays affordable and predictable.

🏠 Need Help Managing Your Property Taxes? Contact Equity Capital Home Loans Today!