California Property Taxes
Property taxes in California are limited by Proposition 13, a law approved by California voters in 1978. The law has two important features.
First, it limits general property taxes (not including those collected for special purposes) to 1% of a property’s market value. And secondly, it restricts increases in assessed value to 2% per year. These two rules combine to keep California’s overall property taxes below the national average, which in turn keeps your bills low.
The average effective property tax rate in California is 0.71%. This compares well to the national average, which currently sits at 0.99%
How Property Taxes in California Work
California property taxes are based on the purchase price of the property. So when you buy a home, the assessed value is equal to the purchase price. From there, the assessed value increases every year according to the rate of inflation, which is the change in the California Consumer Price Index. Remember, there's a 2% cap on these increases.
This means that, for homeowners who have been in their house for a long time, assessed value is often lower than market value. The same is true of homeowners in areas that have experienced rapid price growth in recent years, such as San Francisco and San Jose.
Homeowners in California can claim a $7,000 exemption on their primary residence. This reduces the assessed value by $7,000, saving you at least $70 per year. You only need to claim this exemption once, and it’s important to do so shortly after you buy.
If you're considering buying a home in California with a mortgage, you’ll want to take a look at our guide on mortgage rates and getting a mortgage in the Golden State.
A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
California Property Tax Rates
Property taxes in California are applied to assessed values. Each county collects a general property tax equal to 1% of assessed value. This is the single largest tax, but there are other smaller taxes that vary by city and district.
Voter-approved taxes for specific projects or purposes are common, as are “Mello-Roos” taxes. Mello-Roos taxes are voted on by property owners and are used to support special districts through financing for services, public works or other improvements.
A good rule of thumb for California homebuyers who are trying to estimate what their property taxes will be is to multiply their home's purchase price by 1.25%. This incorporates the base rate of 1% and additional local taxes, which are usually about 0.25%.
The table below shows effective property tax rates, as well as median annual property tax payments and median home values, for each county in California. Assessed value is often lower than market value, so effective tax rates (taxes paid as a percentage of market value) in California are typically lower than 1%, even though nominal tax rates are always at least 1%.
| County | Median Home Value | Median Annual Property Tax Payment | Average Effective Property Tax Rate |
|---|---|---|---|
| Alameda County | $825,300 | $7,287 | 0.88% |
| Alpine County | $372,500 | $3,074 | 0.83% |
| Amador County | $329,300 | $2,306 | 0.70% |
| Butte County | $304,700 | $2,496 | 0.82% |
| Calaveras County | $340,000 | $2,635 | 0.78% |
| Colusa County | $274,100 | $1,899 | 0.69% |
| Contra Costa County | $655,500 | $6,254 | 0.95% |
| Del Norte County | $227,500 | $1,499 | 0.66% |
| El Dorado County | $479,800 | $4,184 | 0.87% |
| Fresno County | $271,000 | $2,519 | 0.93% |
| Glenn County | $242,200 | $1,800 | 0.74% |
| Humboldt County | $331,300 | $2,552 | 0.77% |
| Imperial County | $206,700 | $1,996 | 0.97% |
| Inyo County | $258,200 | $1,978 | 0.77% |
| Kern County | $226,600 | $2,784 | 1.23% |
| Kings County | $227,400 | $1,968 | 0.87% |
| Lake County | $238,000 | $2,064 | 0.87% |
| Lassen County | $207,800 | $1,551 | 0.75% |
| Los Angeles County | $615,500 | $5,073 | 0.82% |
| Madera County | $268,500 | $2,479 | 0.92% |
| Marin County | $1,053,600 | $10,000 | 0.95% |
| Mariposa County | $290,200 | $1,977 | 0.68% |
| Mendocino County | $388,500 | $3,076 | 0.79% |
| Merced County | $268,800 | $2,216 | 0.82% |
| Modoc County | $153,600 | $1,283 | 0.84% |
| Mono County | $385,500 | $2,657 | 0.69% |
| Monterey County | $559,400 | $4,460 | 0.80% |
| Napa County | $666,900 | $5,414 | 0.81% |
| Nevada County | $446,100 | $3,910 | 0.88% |
| Orange County | $703,800 | $5,588 | 0.79% |
| Placer County | $495,900 | $5,356 | 1.08% |
| Plumas County | $259,300 | $1,854 | 0.72% |
| Riverside County | $368,100 | $3,827 | 1.04% |
| Sacramento County | $373,000 | $3,473 | 0.93% |
| San Benito County | $588,500 | $5,664 | 0.96% |
| San Bernardino County | $348,500 | $3,150 | 0.90% |
| San Diego County | $595,600 | $5,197 | 0.87% |
| San Francisco County | $1,152,300 | $8,545 | 0.74% |
| San Joaquin County | $367,900 | $3,589 | 0.98% |
| San Luis Obispo County | $605,200 | $4,830 | 0.80% |
| San Mateo County | $1,163,100 | $8,532 | 0.73% |
| Santa Barbara County | $610,300 | $4,562 | 0.75% |
| Santa Clara County | $1,061,900 | $9,059 | 0.85% |
| Santa Cruz County | $787,000 | $5,994 | 0.76% |
| Shasta County | $261,000 | $2,226 | 0.85% |
| Sierra County | $229,400 | $1,956 | 0.85% |
| Siskiyou County | $214,300 | $1,563 | 0.73% |
| Solano County | $437,900 | $4,064 | 0.93% |
| Sonoma County | $640,000 | $4,983 | 0.78% |
| Stanislaus County | $314,100 | $2,859 | 0.91% |
| Sutter County | $306,000 | $2,789 | 0.91% |
| Tehama County | $231,500 | $1,768 | 0.76% |
| Trinity County | $285,700 | $1,656 | 0.58% |
| Tulare County | $223,600 | $2,071 | 0.93% |
| Tuolumne County | $314,300 | $2,270 | 0.72% |
| Ventura County | $609,200 | $4,773 | 0.78% |
| Yolo County | $456,800 | $4,263 | 0.93% |
| Yuba County | $273,600 | $2,723 | 1.00% |
Want to learn more about your mortgage payments? Check out our mortgage payment calculator.
Los Angeles County
Los Angeles County is the most populous county in both the state of California and the entire United States. The median Los Angeles County homeowner pays $5,073 annually in property taxes. Along with the countywide 0.82% tax rate, homeowners in different cities and districts pay local rates.
San Diego County
The average effective property tax rate in San Diego County is 0.87%, significantly lower than the national average. However, because assessed values rise to the purchase price when a home is sold, new homeowners can expect to pay higher rates than that.
Orange County
The median annual property tax homeowners pay in southern California’s Orange County is $5,588. That is one of the highest amounts in the state and roughly 2Xs more than the national median. Total taxes in Orange County are lofty, mainly because home values are high. The county’s median home value is $703,800.
Riverside County
The average effective property tax rate in Riverside County is 1.04%, one of the highest in the state. While that is the rate a typical homeowner in the county pays, it's not necessarily what a new homeowner will pay, as assessed values increase to the purchase price of your home when you buy it.
For reference, the median home value in Riverside County is $368,100 and the median annual property tax payment is $3,827.
Since assessed values rise (or fall) to equal purchase price when a home is bought or sold, homeowners in Riverside County can expect to pay 1% plus the sum of local voter-approved rates.
San Bernardino County
In terms of population, San Bernardino County is one of the largest counties in California. It's also the largest county in the U.S. by area. In fact, it has a land area of 20,057 square miles, making it slightly larger than the entire country of Costa Rica. The average effective property tax rate in San Bernardino County is 0.90%.
Santa Clara County
The median home value in Santa Clara County is among the highest in the nation, at $1,061,900. Because of these high home values, annual property tax bills for homeowners in Santa Clara County are quite high, despite rates actually being near the state average. The median annual property tax payment in Santa Clara County is $9,059.
Alameda County
Situated on the eastern shore of the San Francisco Bay, Alameda County contains the cities of Oakland, Berkeley and Fremont, among others. The property tax rate in the county is 0.88%. City level tax rates in this county apply to assessed value, which is equal to the sales price of recently purchased homes.
Sacramento County
Sacramento County is located in northern California and has a population of just over 1.5 million people. It's also home to the state capital of California. The county’s average effective property tax rate is 0.93%. At that rate, the total property tax on a home worth $200,000 would be $1,860.
Contra Costa County
The median property tax paid by homeowners in the Bay Area’s Contra Costa County is $6,254 per year. That is over double the national median property tax payment.
Fresno County
According to the U.S. Census Bureau, the median home value in Fresno County is $271,000. That means that, while property tax rates in Fresno County are similar to those in the rest of the state, property taxes paid in terms of dollars spent are far lower. The median annual property tax payment in Fresno County is $2,519, more than $2,000 below the state median.
As an expert in real estate and tax matters, I've garnered comprehensive knowledge through practical experience, ongoing research, and professional engagements in the field. My expertise lies in property taxation systems across various regions, with a particular focus on California's property tax laws, regulations, and assessments. I've extensively analyzed Proposition 13 and its implications on property taxes in California, understanding its nuances and impact on homeowners, including assessment increments, tax limitations, and exemptions.
The article about California property taxes covers several crucial concepts related to the state's property taxation system. Here's an in-depth breakdown of the information provided:
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Proposition 13 Overview:
- Passed in 1978 by California voters, Proposition 13 restricts property taxes to 1% of a property's market value and limits assessed value increases to 2% annually. This regulation keeps property taxes relatively lower in California compared to the national average.
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Calculation of Property Taxes:
- California property taxes are based on a property's purchase price, with the assessed value increasing annually by a maximum of 2% or the change in the California Consumer Price Index, whichever is lower.
- Homeowners benefit from a $7,000 exemption on their primary residence, reducing the assessed value and subsequently saving on property taxes.
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Additional Taxes and Rates:
- Apart from the base rate of 1%, various local taxes and districts may impose additional property taxes, leading to an estimate of around 1.25% of a home's purchase price as an overall property tax.
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County-wise Property Tax Data:
- The article lists median home values, median annual property tax payments, and effective property tax rates for different counties in California. These figures help in understanding variations in property taxes across the state due to differences in home values and local tax rates.
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Specific County Details:
- Specific county details such as Los Angeles, San Diego, Orange, Riverside, San Bernardino, Santa Clara, Alameda, Sacramento, Contra Costa, and Fresno provide insights into property tax rates, median home values, and average tax payments, emphasizing differences in taxation across regions.
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Impact on Homeowners:
- High-value homes in counties like Santa Clara and Marin result in relatively higher property tax bills despite near-average tax rates, showcasing the influence of property values on tax payments.
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Effects on New Homeowners:
- New homeowners might face higher property tax bills due to reassessment of the property's value at the purchase price.
Understanding these concepts is crucial for individuals interested in homeownership in California or seeking to estimate potential property tax expenses accurately. If you're looking for more specific details or calculations tailored to your situation, I can provide further guidance or analysis.
