California Property Tax Rate 2025: What You’ll Really Pay

Think California’s property tax rate is just 1%? Think again. That’s just the base. Add in city taxes, bond measures, and reassessments — and you could be paying closer to 1.25% without realizing it.

In fact, in 2025:

• A $750K home in LA can trigger a $9,164 tax bill
• New buyers risk automatic reassessments and tax bumps
• Renovations or delays? That could cost you $15K+ over the next decade

Whether you're buying, refinancing, or staying put, knowing your true property tax rate by ZIP code is non-negotiable in 2025.

Let’s break down what you’re really paying, what changed this year, and how to legally cut your tax bill with exemptions, timing, and one smart homebuying move.

Your total tax bill depends on your county, home value, and exemptions — not just the 1% base rate.

Yes — but the rules also protect you more.

While CA’s average tax rate (~0.68%) seems low, high home prices mean actual tax bills are higher than in many states.

Takeaway: High prices, not high rates, make California taxes sting.

Yes — buying before reassessment can lock in a lower base tax.

Under Prop 13, your tax base is frozen at the purchase value. Delaying your homebuying could expose you to a higher reassessment.

• Buy now = save $10K+ over 10 years

• Beat 2025’s mid-year market bump
• Avoid reassessments from post-buy renovations

Local governments levy property taxes on real estate properties to fund public services. In California, property taxes are governed by Proposition 13. This rule sets a limit on the tax rate and controls how much the property cost can increase each year.

The California property tax rate is 1% of the property’s assessed value in addition to voter-approved local taxes and assessments. This limit is important as it ensures that property taxes remain predictable for you.

The California property tax rate is one of the most stable in the U.S. This stability is because of the regulations that limit the increase in tax rates and property assessments. The base tax rate is 1% of the property's assessed value. However, additional local taxes and assessments increase the total tax rate.

For example, in Los Angeles County, the average property tax rate is approximately 1.16%. Of this, 1% is the base tax of the property value, while the remaining 0.16% is local taxes.

You can use a California property tax calculator to find out how much property tax you need to pay. This will play a critical role in your property’s assessed value and local taxes.

Proposition 13 is a landmark law passed in 1978. It significantly affects property taxes in California.

This law:

• Limits the property tax rate at 1% of the assessed property value.

• Restricts annual increases in assessed value to 2%.

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Property taxes in California are calculated based on the assessed value of your property. The estimated value is determined at the time of purchase of the property. This can only increase by 2% annually under Proposition 13.

Here’s a simple way to calculate property tax:

Want to avoid delays or surprises in your homebuying journey? Get conditionally approved before tax reassessments hit.

• Assessed Value: This is usually the purchase price of your property (e.g., $500,000).

• Base Tax Rate: 1% of the assessed value.

• Local Taxes/Assessments: Additional taxes vary by area, usually for local services or bonds.

It's also important to review your mortgagee clause to understand how your lender is protected when taxes are unpaid.

Example:

Imagine you purchase a home in California for $500,000:

Base Property Tax:

• $500,000 × 1% = $5,000 annually

Local Taxes/Assessments:

• Local voter-approved taxes add approximately $600–$1,000 annually. It depends on your area.

So, your total property tax would likely be $5,600–$6,000 annually.

This calculation gives you a clear idea of what to expect when budgeting for property taxes.

California offers several property tax exemptions and relief programs. These include:

• Homeowner’s Exemption: It reduces the assessed value of a primary residence by $7,000. This helps to save you about $70 annually.

• Senior Citizen Property Tax Postponement Program: This allows senior citizens to postpone property taxes. This is done after they fulfill income and equity requirements.

• Veterans’ Exemption: It is available to veterans with disabilities. It provides additional tax relief. For the 2025 assessment year, the basic exemption amount is $175,298.

Property tax rates can vary by county. This is due to local assessments and voter-approved measures. Here’s a quick overview:

Use a California tax estimator to get precise figures for your county.

Find the Perfect Mortgage in California with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

Proposition 13 caps the increase annually in assessed value. However, property taxes can rise in California due to:

• Local Bond Measures: Voter-approved initiatives for schools, parks, and infrastructure. These measures are necessary to fund community welfare.
• New Construction: It adds value to the property. As a result, the property is reassessed at a higher value, leading to higher taxes.
• Ownership Changes: Reassessment of the current market value, which often increases the tax base. This ensures that the new owner pays taxes aligned with the property’s updated worth.

You should consider these strategies to reduce your property taxes:

• Claim Exemptions: You should ensure that you’ve applied for all eligible exemptions. One example is the Homeowner’s Exemption.
• Appeal Assessments: You should file an appeal with your county assessor if you believe your property is overassessed.
• Avoid Major Renovations: Home improvements can lead to a reassessment.
• Check Tax Bills: Learn how to read a property tax bill to identify any errors or overcharges.

If your monthly expenses feel high, you might also explore how often you can refinance your home to secure better terms and ease your tax burden.

Failing to pay property taxes can have serious consequences. Some of them are:

• Delinquent Penalties: Unpaid taxes will lead to penalties. This is typically 10% of the unpaid amount.

• Tax Lien: A tax lien is also recorded against the property, which makes it difficult to sell or refinance until the debt is cleared.
• Tax Auction: If property taxes remain unpaid for five consecutive years, the county has the right to sell the property at a tax auction to recover the unpaid taxes.

Missed payments could also trigger your acceleration clause — putting your loan at risk.

Property tax isn’t your biggest cost in 2025 — ignorance is. Most buyers lose thousands simply by waiting too long, skipping exemptions, or overpaying agents.

But here’s the move reAlpha buyers are making:

• Lock in tax savings early by freezing a lower assessment
• Slash agent commissions — and get up to 75% of it back
• Bundle mortgage + title to unlock the full rebate

Imagine saving $7,500 on taxes… and another $15,000 in agent fees. That’s the power of buying smarter.

• 25% Rebate: Use a reAlpha agent
• 50% Rebate: Add reAlpha mortgage
• 75% Rebate: Bundle mortgage + title

Limited ZIP code availability. See how much you qualify for — before rates rise again.\

Pasadena’s average property tax rate is about 1.17%, slightly above the state average.

This includes the 1% base plus 0.17% in local measures for schools, transportation, and parks.

San Francisco has one of the highest tax bills due to home values, not tax rates.

With a 1.18% average rate and a median price of $1.3M, expect $15,340+/year in property taxes.

Yes — Oregon uses a fixed tax cap per property, while California reassesses on sale.

This means California buyers often face much higher tax bills, even if the rate appears similar.

Around $4,400–$5,200 annually, depending on your county.

Breakdown:

• $400K × 1% base = $4,000
• Local taxes = ~$400–$1,200

Not automatically — they’re capped at 2% annual increase under Prop 13.

However, new construction, ownership change, or bond measures can override that cap.

Find the Perfect Mortgage in California with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved