California Property Tax Basics
California property tax rate is approximately 1.0-1.25% of assessed value. The key difference from other states: Proposition 13 limits how fast your assessment can grow.
Proposition 13 (1978)
- Tax based on purchase price, not current market value
- Annual increase capped at 2%
- Full reassessment only on property transfer
Proposition 19 (2020)
Benefits for 55+: Transfer your low tax base to a new home anywhere in CA (up to 3 times).
Inheritance impact: Children must use inherited property as primary residence to keep the low tax base. Rental use triggers full reassessment. Current exemption cap: $1,044,586.
Common Exemptions
- Homeowner's Exemption: $7,000 off assessed value (~$70/year savings)
- Decline in Value: Request lower assessment if home value drops
Watch Out For
- Supplemental Tax: One-time adjustment bill after purchase
- Mello-Roos: Extra tax in newer communities for infrastructure
Strategies
- Apply for Homeowner's Exemption immediately after purchase
- Check annual assessment notices for accuracy
- Use Prop 19 if 55+ and downsizing/relocating
- Plan inheritance to meet Prop 19 primary residence requirements
