Quick answer: California property taxes are based on your home’s assessed value — set at your purchase price when you buy — at a base rate of about 1%, plus local voter-approved assessments (often totaling ~1.1–1.3%). Under Proposition 13, your assessed value can rise at most ~2% a year, so your bill is fairly predictable after purchase.
Key takeaways
- Your home is reassessed to its purchase price when you buy.
- The base rate is ~1%, plus local assessments (often ~1.1–1.3% total).
- Prop 13 caps annual assessed-value increases at ~2%.
- Expect a one-time supplemental tax bill after closing.
- Property taxes are usually paid through your mortgage escrow.
How your tax bill is calculated
Multiply your assessed value (your purchase price at first) by your area’s combined rate. On a $1,000,000 home at ~1.2%, that’s roughly $12,000 a year, or about $1,000 a month, usually collected within your mortgage payment.
What is a supplemental tax bill?
When you buy, the county reassesses the home and sends a one-time supplemental bill for the difference between the old and new assessed value for the remainder of the tax year. New owners are often surprised by it, so set money aside.
Budgeting for property taxes
Factor taxes into your monthly housing budget from day one — they’re a permanent cost alongside your mortgage, insurance, and any HOA. Have questions? Book a free consultation and I’ll help you plan your next step.
Frequently Asked Questions
How much are property taxes in California?
The base rate is about 1% of assessed value, plus local voter-approved assessments, commonly totaling around 1.1–1.3%.
When is my home reassessed?
At the time of purchase, your assessed value is reset to your purchase price. After that, Prop 13 limits annual increases to about 2%.
What is a supplemental property tax bill?
A one-time bill after you buy, covering the difference between the prior and new assessed value for the rest of the tax year.
Are property taxes included in my mortgage payment?
Usually yes. Most lenders collect property taxes and insurance in an escrow account as part of your monthly payment.
Does Prop 13 protect me from big tax jumps?
Yes. It caps annual increases in your assessed value at roughly 2%, keeping your tax bill predictable while you own the home.
Written by Surbhi Gupta, REALTOR® · CA DRE# 02314083 · eXp Realty of California, Inc. Serving Fremont, Union City, Newark, Hayward & Milpitas. This article is for general education, not financial advice — confirm current figures with a licensed professional.
