Property Taxes in California
California's effective property tax rate is 0.7%, ranking #19 out of 50 states (1 = lowest). The median annual property tax paid is $5,946.
California's Proposition 13 (1978) caps property tax rates at 1% of assessed value and limits annual assessment increases to 2%, regardless of market appreciation. This means long-term homeowners pay far less in property taxes than new buyers of identical homes — a dynamic that has profound effects on housing mobility and inventory. When you buy a home in California, your property tax is based on the purchase price, not the potentially lower assessed value the previous owner was paying. Mello-Roos special assessment districts in newer subdivisions can add 0.5-1.5% to the effective rate.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
0.7%
Median Annual Tax
$5,946
National Rank
#19 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $1,400 | $117 |
| $300,000 | $2,100 | $175 |
| $400,000 | $2,800 | $233 |
| $500,000 | $3,500 | $292 |
| $750,000 | $5,250 | $438 |
* Based on the average effective rate of 0.7%. Actual rates vary by county and municipality.
Homestead Exemption in California
Up to $300,000-$600,000 (varies by county median)
File for the homestead exemption after purchasing your primary residence in California to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
How California Compares
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