California real estate law
California property tax: how it is set and what changes it
The 1% limit, the base-year value, what triggers a new assessment, and when the bill is due. Each rule links to the law it comes from.
Key points
How the tax is set What triggers a new assessment Exclusions and exemptions Bills and due dates
Property tax is set by the California Constitution and the Revenue and Taxation Code. Counties collect it. The rules below apply in every county. The county adds local bonds and special assessments to your bill.
How the tax is set
| 1% property tax limit (Prop 13) | The general property tax on real property may not exceed 1% of its full cash value; voter-approved bond debt is levied on top Applies: The 1% limit does not apply to taxes for voter-approved indebtedness listed in § 1(b) (pre-1978 debt, two-thirds-approved real property bonds, 55% school facility bonds). |
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| Assessed value reset on purchase (constitution) | Full cash value is the appraised value when the property is purchased, newly constructed, or changes ownership, and may rise no more than 2% a year |
| Assessed value is set at purchase | Property is assessed at its market value on the date of purchase, change in ownership, or completion of new construction (the base year value) |
| 2% annual cap on assessed value | The base year value rises each year by the California CPI change, but never more than 2% |
| Decline-in-value ("Prop 8") reductions | Taxable value is the lower of the inflation-adjusted base year value or current market value, so a market drop lowers the assessment |
What triggers a new assessment
| What counts as a change in ownership | A transfer of a present interest in real property, including its beneficial use, worth substantially the same as the fee interest Applies: Many transfers are excluded (between spouses, into a revocable trust, qualifying parent-child transfers and others in §§ 62–63.2). |
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| Supplemental assessment after a purchase | On a change in ownership or completed new construction, the assessor reappraises the property at its market value on that date |
| Supplemental tax bills | An event between January 1 and May 31 produces two supplemental assessments; an event from June 1 to December 31 produces one, each for the difference between the new base year value and the roll value |
| Change in ownership statement | The new owner files a change in ownership statement at recording, or within 90 days if the transfer is not recorded |
Exclusions and exemptions
| Homeowners' exemption | $7,000 of the dwelling's assessed value is exempt when it is the owner's principal residence Applies: Owner-occupied principal residence; claimed with the county assessor. |
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| Parent-child transfer (Prop 19) | Since February 16, 2021, a parent-to-child (or qualifying grandparent-to-grandchild) transfer keeps the parent's taxable value only for the family home that becomes the child's principal residence within one year; value above the old taxable value plus $1,000,000 is added Applies: A claim must be filed; the child must file for the homeowners' or disabled veterans' exemption within one year. The $1,000,000 is adjusted for inflation by the Constitution (art. XIII A, § 2.1), and the adjusted figure is not in the corpus. |
| Base year value transfer (Prop 19) — 55+, disabled, disaster victims | A homeowner over 55, severely and permanently disabled, or a wildfire/natural-disaster victim may transfer their taxable value to a replacement home when the original home is sold within two years of buying the replacement Applies: If the replacement is worth more than 100% (bought before the sale), 105% (within the first year after) or 110% (within the second year after) of the original, the difference is added. Over-55 and disabled claimants may not use it if already granted more than two times. |
| Prop 19 parent-child exclusion amount in force | For transfers from February 16, 2025 through February 15, 2027, the parent-child value cap is the factored base year value plus $1,044,586 (the $1,000,000 amount adjusted by California's 2.15 percent House Price Index change for 2024). The next adjustment is February 2027. Applies: Family home or each legal parcel of a family farm transferred parent-to-child under RTC § 63.2. Adjusted every other February 16; check for a newer BOE letter after February 15, 2027. |
Bills and due dates
| Tax bill mailing | The county mails the secured tax bill by November 1; not receiving it does not excuse penalties |
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| First installment | Half the annual tax is due November 1 and delinquent after 5 p.m. December 10, when a 10% penalty attaches |
| Second installment due date | The second half of the year's tax is due February 1 |
Tax rate by address
On top of the 1%, each area adds the bonds its voters approved, so the rate changes from one neighborhood to the next. Look up the rate for an address, with an annual estimate →
Who this affects
HomeownersBuyersInvestors
General information, not legal advice.
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