California Property Tax Explained

How California property taxes work in 2026: Proposition 13, the 1% base rate, the 2% assessment cap, Prop 19 family transfers, due dates, and supplemental bills.

How Property Taxes Work in California

California property taxes are governed by Proposition 13, passed in 1978. It caps the base tax rate and limits how fast your assessed value can grow — one of the most important things to understand as a California homeowner.

Proposition 13 in Plain English

Your property is assessed at its value when you buy it. From then on, the assessed value can rise no more than 2% per year, regardless of how fast the market climbs. The base tax is 1% of that assessed value, plus local voter-approved bonds, school parcel taxes, and special assessments — so most Californians pay an effective rate closer to 1.1% to 1.3%.

What Happens When You Buy

A change of ownership triggers reassessment to current market value. That is why a newly purchased home often carries a noticeably higher tax bill than the seller was paying — the previous owner may have been protected by years of the 2% cap.

Prop 19 and Family Transfers

Proposition 19 (2020) changed the rules for transferring a low tax basis. Parent-to-child transfers now generally keep the low basis only if the child makes the home their primary residence, and even then only up to a value limit. It also lets eligible homeowners (55+, disabled, or disaster victims) carry their basis to a replacement home anywhere in California. These rules are nuanced — consult a tax professional.

Supplemental Tax Bills

After you buy, expect a one-time supplemental bill covering the difference between the old and new assessed value for the remainder of the tax year. Budget for it so it is not a surprise.

Frequently Asked Questions