What is the Property Tax Rate in California?

California’s base property tax rate is set at 1% of a home’s assessed value, as established by Proposition 13. However, most homeowners do not pay 1% of their home’s market value in taxes. That’s because the assessed value — which determines your tax bill — is often much lower than the current market value, especially if you’ve owned the home for several years.

Due to this gap between assessed and market value, along with common exemptions like the $7,000 Homeowners’ Exemption, the effective property tax rate in California typically ranges from 0.71% to 0.75%, according to state and federal data.

For example, a California homeowner with a home worth $850,000 might pay around $6,035 to $6,375 annually in property taxes. This is lower than what a 1% rate on the full market value would suggest. That difference is even more pronounced for long-time homeowners whose assessed values have grown slowly due to Prop 13’s 2% annual cap.

Note: HomeLight’s California property tax calculator provides a ballpark estimate for a primary residence using average effective rates. Your actual tax bill will vary depending on your assessed value, local voter-approved levies, and applicable exemptions. For a precise amount, contact your county assessor’s office.

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Are There Property Tax Exemptions in California?

California homeowners may qualify for property tax exemptions that help reduce their annual tax bill. These exemptions are generally administered by your county assessor’s office, and eligibility is typically limited to owner-occupied primary residences. Common exemptions include:

  • Homeowners’ Exemption: This is the most widely used exemption. If you own and occupy your home as your primary residence, you can apply for a $7,000 reduction in your home’s assessed value, which results in about $70 in annual savings on your property tax bill.
  • Disabled Veterans’ Exemption: California offers a property tax exemption to veterans who are 100% disabled due to a service-connected disability. (The exemption is also available to the unmarried surviving spouse of a qualifying disabled veteran.) The exemption for a primary residence ranges from $180,671 to $271,009, depending on household income.
  • Over-55 base year transfer (Prop 19): While not a traditional exemption, this rule allows homeowners 55 or older, or those with severe disabilities, to transfer the property tax base value of their existing home to a new primary residence within California, potentially keeping their taxes lower after moving. This can be especially valuable in high-cost areas.
  • Homeowners’ Exemption portability: If you’re buying a new primary residence in California, note that the Homeowners’ Exemption does not transfer automatically from the previous owner. You’ll need to file a claim form with your local assessor after moving in.

For more information or to apply for these exemptions, visit your county assessor’s website or the California State Board of Equalization for links to local offices. You can also visit the board’s Property Tax Bill FAQ page.

When Are California’s Property Taxes Due?

  • The first installment of the annual property tax bill is typically due on November 1 and becomes delinquent after 5 p.m. on December 10.
  • The second installment of the tax bill is typically due on February 1 and becomes delinquent after 5 p.m. on April 10.

Payments received after the deadlines are considered delinquent and may incur a 10% penalty. If either due date falls on a weekend or holiday, the deadline is extended to the next business day.

What Do Property Taxes Pay for in California?

In California, property tax dollars support a wide range of local public services, including:

  • Public schools: A large portion of property tax revenue goes to support K–12 school districts and community colleges throughout the state.
  • County services: Your taxes help fund essential county-level functions such as law enforcement, public health, courts, jails, and local elections.
  • City services: If you live within city limits, a share of your property taxes supports services like fire and police departments, road maintenance, libraries, parks, and trash collection.
  • Special districts: Depending on your property’s location, you may also be taxed by special districts that manage local needs like water delivery, flood control, street lighting, or transit systems.

Yes, You Can Buy Before You Sell. Why Move Twice?

Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.

What Does It Cost to Buy a Home in California?

How Much House Can You Afford?

Affordability in California varies widely by region, but it’s often a challenge due to the state’s high home prices. With a median home price of around $850,000, many buyers need dual incomes or significant savings to qualify. Using standard debt-to-income guidelines, a household earning around $120,000 to $150,000 per year might afford a home in the $500,000 to $650,000 range, depending on down payment and interest rate.

Use HomeLight’s Home Affordability Calculator to estimate what price range fits your income, debts, and current mortgage rates.

What down payment will you need in California?

Down payments vary depending on loan type, credit score, and local programs. While 20% is often cited as the ideal for avoiding additional mortgage insurance fees, many California buyers — especially first-timers — put down less. Common options include:

  • 3% for some conventional and first-time buyer programs
  • 3.5% for FHA loans
  • 5% to 15% for standard conventional loans

For an $850,000 home, here’s what your down payment might look like:

  • 3% down = $25,500
  • 5% down = $42,500
  • 10% down = $85,000
  • 15% down = $127,500
  • 20% down = $170,000

According to a 2025 NerdWallet report using data from the National Association of Realtors, the median down payment amount in California is $96,100.

Down payment assistance programs are available in many parts of California. For example, CalHFA (California Housing Finance Agency) offers a range of assistance programs for qualified low and moderate-income buyers. Visit the CalHFA website to learn more.

Try HomeLight’s Down Payment Calculator to see how your payment amount affects your monthly costs and loan size.

How much are closing costs in California?

Buyers in California typically pay 2% to 5% of the home’s purchase price in closing costs. These may include:

  • Loan origination and underwriting fees
  • Appraisal and home inspection costs
  • Title insurance and escrow fees
  • Prepaid property taxes and homeowners insurance
  • County transfer taxes and recording fees

For an $850,000 home, closing costs may range from $17,000 to $42,500, depending on location and loan details.

Use HomeLight’s Closing Costs Calculator to get a personalized estimate based on your expected California home purchase price.

How To Find a Trusted California Real Estate Agent

An experienced California real estate agent can help you understand local tax rates, school districts, and development trends — and guide you toward neighborhoods that fit your budget and lifestyle.

HomeLight’s free Agent Match tool uses data from over 27 million transactions and thousands of verified reviews to match you with top California agents based on actual performance. Tell us a little about your buying plans and get matched today with no obligation.

Buying and Selling? Consider “Buy Before You Sell”

If you’re buying a new home in California but need to sell your current house first, HomeLight’s Buy Before You Sell program can simplify the entire process. This modern solution helps you unlock equity from your current property so you can make a non-contingent offer on your new home, and only move once. Watch the short video below to see how it works.