California Property Tax Laws (2026): Everything You Need To Know

Property taxes in California can be confusing. Many homeowners don’t understand how these taxes work or when to pay them.

This guide explains California’s property tax laws in simple terms. You’ll learn about tax rates, payment deadlines, and ways to save money.

What Is Property Tax?

Property tax is money you pay each year on real estate you own. This includes your home, land, and any buildings on your property.

California uses property tax money to fund schools, police departments, fire stations, and local government services. The tax amount depends on your property’s assessed value.

Your assessed value is what the county thinks your property is worth for tax purposes. This value may be different from what you could sell your property for today.

Basic California Property Tax Laws

Proposition 13 Protection

California has special rules that limit how much your property taxes can increase. Proposition 13 was passed in 1978 to protect homeowners.

This law caps your property tax rate at 1% of your home’s assessed value. It also limits annual increases in assessed value to 2% per year.

When you buy a home, the county sets your assessed value at the purchase price. From then on, it can only go up 2% per year until you sell.

Tax Rate Breakdown

Most California property owners pay more than 1% in total property taxes. The base rate is 1%, but counties add extra fees for bonds and special districts.

The average effective tax rate ranges from 1.1% to 1.3% across California. This includes school bonds, local assessments, and Mello-Roos fees.

In Los Angeles County, the total rate averages about 1.25%. San Francisco County averages about 1.2%.

Property Tax Assessment Process

How Assessed Value Is Set

County assessors determine your property’s assessed value each year. They use January 1st as the “lien date” to set values.

When you buy property, the assessor sets your assessed value at the purchase price. This becomes your “base year value.”

Your base year value can only increase 2% per year unless you make major improvements or sell the property.

Reassessment Triggers

Your property gets reassessed at current market value when ownership changes. This includes sales, gifts, and most transfers.

New construction also triggers reassessment. Adding a room or making major improvements can increase your assessed value.

Some transfers don’t trigger reassessment. These include transfers between spouses and certain parent-to-child transfers.

Payment Deadlines and Penalties

Regular Payment Schedule

California property taxes are paid twice per year. The first installment covers July through December.

The second installment covers January through June of the following year. You can also pay the full year at once.

First installment is due November 1st. It becomes delinquent after December 10th.

Second installment is due February 1st. It becomes delinquent after April 10th.

Late Payment Penalties

Missing the December 10th deadline triggers a 10% penalty on your first installment. This penalty is added immediately.

Missing the April 10th deadline adds a 10% penalty plus $10 in costs to your second installment.

If you don’t pay by June 30th, your property enters default status. Additional penalties of 1.5% per month apply.

After five years of non-payment, the county can sell your property to collect unpaid taxes.

2025 Fire Relief for Los Angeles

Property owners in fire-affected Los Angeles areas get special relief for 2025. Governor Newsom extended payment deadlines to April 10, 2026.

This applies to specific ZIP codes including 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, and 93536.

Penalties and interest are suspended during this period. Property owners can also request disaster reassessment for damaged properties.

Exemptions and Tax Relief Programs

Homeowners’ Exemption

The homeowners’ exemption reduces your taxable value by $7,000. This saves most homeowners about $70 per year.

You must live in the property as your primary residence to qualify. The exemption applies automatically once approved.

File Form BOE-266 with your county assessor to claim this exemption. You only need to file once.

Disabled Veterans’ Exemption

Veterans with 100% disability ratings can get much larger exemptions. There are two levels available.

The basic exemption removes $175,298 from your assessed value for 2025. The low-income version removes $262,950.

To qualify for low-income benefits, your household income must be under $78,718 per year. You must reapply annually for the low-income version.

New 2025 Veterans’ Benefits

Senate Bill 23 provides full property tax exemptions for 100% disabled veterans starting January 1, 2025. This covers their primary residence completely.

The exemption also extends to surviving spouses under certain conditions. Veterans must provide documentation from the Department of Veterans Affairs.

Senior and Disabled Transfer Rights

Proposition 19 allows homeowners over 55 to transfer their low tax base to a new home. You can do this up to three times in your lifetime.

Severely disabled homeowners and disaster victims also qualify for base year value transfers. The new home can be anywhere in California.

Property Tax Appeals Process

When to File an Appeal

You can appeal your property tax assessment if you think your property is overvalued. Most appeals happen when property values decline.

The county assessor may have made errors in calculating your assessed value. You might also appeal if comparable properties have lower assessments.

Appeals are also common after purchasing property if the purchase price was below market value.

Filing Deadlines for 2025

The regular filing period runs from July 2, 2025, to December 1, 2025, in most counties. Some counties have shorter periods ending September 15, 2025.

You must file before the deadline or your appeal won’t be accepted. No extensions are available for missed deadlines.

There’s usually a filing fee ranging from $40 to $120 depending on your county. This fee is not refundable even if you lose your appeal.

Appeals Process Steps

First, try to resolve the issue directly with your county assessor. They might correct obvious errors without requiring a formal appeal.

If that doesn’t work, file an Application for Changed Assessment with your county’s assessment appeals board.

The appeals board will schedule a hearing where you present evidence supporting your opinion of value. The board can lower, raise, or confirm your assessment.

How to Pay Property Taxes

Online Payments

Most counties offer online payment systems. You can pay with electronic checks for free in most areas.

Credit card payments are usually accepted but often include convenience fees of 2-3%. Check your county’s website for specific options.

Make sure your online payment is submitted before 11:59 PM on the due date to avoid penalties.

Mail and In-Person Options

You can mail payments to your county tax collector. Make sure the envelope is postmarked by the due date.

Many counties have drop boxes or offices where you can pay in person. Bring your tax bill and payment method.

Some counties accept cash payments in person, but checks and money orders are more common.

Escrow Accounts

If you have a mortgage, your lender might collect property taxes through an escrow account. They pay the taxes directly to the county.

Check with your lender to confirm taxes are being paid properly. Mistakes can happen and you’re still responsible for timely payment.

Even if you have escrow, monitor your property tax bills to catch any problems early.

Recent Law Changes

Proposition 19 Effects

Proposition 19 changed inheritance rules for property taxes in 2021. Children can only inherit their parents’ low tax base if they use the home as their primary residence.

Inherited vacation homes and rental properties now get reassessed at current market value. This can create much higher tax bills for heirs.

The first $1 million of assessed value can still transfer to children for non-primary residences. Amounts above $1 million get reassessed.

Federal Tax Deduction Changes

The federal SALT (state and local tax) deduction limit increased to $40,000 for 2025-2029. This helps California homeowners who itemize deductions.

Previously, you could only deduct $10,000 in combined state and local taxes. The higher limit provides significant tax relief.

This change applies to taxpayers with incomes under $500,000 annually. The limit will gradually increase by 1% each year through 2029.

Supplemental Tax Bills

What Are Supplemental Bills?

When you buy property or complete new construction, you may receive supplemental tax bills. These cover the difference between old and new assessed values.

Supplemental bills are separate from your regular property tax bills. They have different due dates and penalty structures.

The timing depends on when your purchase or construction was completed. Bills can arrive months after closing escrow.

Payment Rules

Supplemental bills mailed between July 1 and October 30 have first installments due January 31. They become delinquent February 1.

Bills mailed between November 1 and June 30 are due the last day of the month following the mailing date.

A 10% penalty applies immediately if you miss the due date. There’s no grace period for supplemental bills.

Frequently Asked Questions

When are California property taxes due for 2025?

First installment is due November 1, 2024, and delinquent after December 10, 2024. Second installment is due February 1, 2025, and delinquent after April 10, 2025.

How much are property taxes on a $500,000 home in California?

With an average rate of 1.1%, you’d pay about $5,500 annually. Rates vary by location from 1% to 1.3% of assessed value.

Can I appeal my property tax assessment?

Yes, you can file an appeal from July 2 through December 1, 2025, in most counties. You need evidence that your property is overassessed compared to market value.

What happens if I don’t pay my property taxes?

A 10% penalty is added immediately after the deadline. After five years of non-payment, the county can sell your property to collect unpaid taxes.

Do I get property tax relief as a senior citizen?

Seniors over 55 can transfer their low tax base when buying a new home. Some counties offer additional senior exemptions or postponement programs.

Final Thoughts

California’s property tax laws offer both challenges and opportunities for homeowners. Understanding Proposition 13 protections and available exemptions can save you thousands of dollars.

Stay on top of payment deadlines to avoid costly penalties. Consider appealing your assessment if property values in your area have declined.

Take advantage of exemptions you qualify for, especially if you’re a veteran or senior citizen. When in doubt, contact your county assessor’s office for guidance.