California Property Tax (2026): Rates, Prop 13 & Cost

California property taxes aren’t “spiking,” but new buyers are paying the highest effective rates in 15 years - and 2026 is shaping up to be even more expensive. Here’s the real story buyers need:

Prop 13 still caps increases at 2% per year, but that protection only applies after you own the home. The moment you buy in 2025 or 2026, your home is fully reassessed at market value, instantly resetting your tax baseline for the next 30 years. And because California home prices climbed again in 2024–2025, most buyers are entering 2026 with higher starting assessments + higher local add-ons.What This Means for Buyers

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Counties across California are planning more school bonds, wildfire mitigation measures, and infrastructure levies - all of which push effective property tax rates from the old “1%” myth to 1.15%–1.35%+ for many ZIPs.

Do taxes increase every year?”

Only by up to 2% if you already own. But new buyers in 2025–2026 start from a much higher value - the hidden cost most shoppers miss.

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Each month you wait = ~$60–$120 in lost equity due to rising 2026 reassessment baselines.

If you’re comparing tax costs across states, it’s worth knowing how California stacks up. Our guide on national property tax differences shows what buyers pay in Florida, Texas, Georgia and beyond - a useful benchmark before you commit.

• Read: Property Tax in the U.S.

And if you want to see how taxes + mortgage + insurance combine into your total payment, our mortgage payment breakdown guides help you forecast your real monthly cost.

• Try: 300k Mortgage Payment Breakdown

The base property tax rate in California is 1% of a home’s assessed value, but the real (effective) rate for 2025–2026 buyers is typically 1.1%–1.3%+ once local bonds, parcel taxes, and Mello-Roos fees are added.

2025 Rate: ~1.11% average

2026 Expected Rate: ~1.15%–1.28% for most metros (due to new bond cycles + higher reassessment values)

California’s “1%” number comes from Prop 13, but it does not reflect what buyers actually pay in Los Angeles, Orange, San Diego, or the Bay Area. Those counties stack on school bonds, infrastructure levies, transit measures, wildfire funding, and - in high-growth suburbs - Mello-Roos CFDs.

For years, buyers heard, “California property tax is 1%.” In 2025–2026, that rule is officially dead. The 1% figure only covers the statewide base tax under Prop 13. What you actually pay is the effective rate, which includes every local voter-approved line item stacked on top of that base.

Most California ZIP codes add:

• School bonds (+0.05%–0.15%)
• Infrastructure + wildfire bonds (+0.03%–0.07%)
• Parcel taxes (flat fees that hit condos hardest)
• Mello-Roos CFDs (+0.2%–1.0% in new-build suburbs)

In Irvine, Chula Vista, and Sacramento suburbs, buyers face total tax bills closer to 1.6%–1.9% - nearly double the old “1% rule.”

Over 60% of CA counties are preparing new bond measures for 2025–2026. That means today’s buyers lock in a lower baseline than buyers who wait.

Waiting means buying at a higher assessed value + higher effective rate, compounding the cost for 30 years.

California still advertises a “1%” base tax rate, but effective rates vary sharply by county, especially where school bonds, infrastructure measures, and Mello-Roos stack on top of Prop 13. Below is the only 2025–2026 county table buyers actually need - updated for new bond cycles and reassessment baselines.

(Ranges reflect ZIP-specific add-ons + new 2025–26 bond measures)

Riverside County’s Mello-Roos zones can push buyers into 1.55%+ territory - almost 40% higher than the effective rate in parts of Orange County. That’s a $3,000–$4,200/yr swing on the same home price.

Only the base rate is the same. Your actual bill depends on your county’s debt obligations and your ZIP’s voter-approved add-ons.

Many buyers deciding when to purchase also compare states like Florida or Texas for cost relief. If you’ve considered moving, our Florida homebuying timing guide breaks down the seasonal best months to get lower prices + lower tax baselines.

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California buyers rarely calculate the real monthly cost of property taxes - and that’s where 2025–2026 shoppers get blindsided. Because effective rates now sit closer to 1.15%–1.30%, the difference between a $750K and $1M home isn’t just a higher mortgage… it’s thousands more in annual taxes locked in for 30 years.

Assuming a realistic 1.20% effective rate - California’s 2025–26 statewide buyer average.

A $2M home doesn’t just mean “bigger mortgage.” It means $2,000/month in taxes

New buyers in 2025–26 are reassessed at full market value, so you lock in today’s higher costs (and avoid 2026’s expected jump).

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Most buyers think waiting until 2026 will “save money” if home prices cool.

The opposite is true. Because of reassessment rules, Prop 13 limits, and new 2026 bond cycles, delaying your purchase can raise your lifetime property tax cost by tens of thousands.

• When you buy in 2025, your tax baseline locks to 2025 market value.
• When you wait until 2026, your baseline resets to 2026 market value + 2026 bond measures, which counties are already preparing.
• Even a small $20K–$40K value increase = permanent higher taxes for 30 years.

• Prop 13 doesn’t cap what new buyers pay.
• It caps how fast your taxes increase once you own the home.
• Buying in 2025 = 30 years of protected increases based on today’s lower value.

Waiting until 2026 = protected increases based on next year’s higher value.

Assuming a realistic 1.20% effective rate (CA 2025–26 buyer average).

A simple 5% market rise + new 2026 bond layer adds $1,050 every 3 years-the same as losing an entire mortgage payment annually.

Rates may fall-but reassessments and new bond cycles don’t fall with them. Lower rates often push prices up, further raising your 2026 baseline.

Prop 13 is the rule that keeps long-term California homeowners paying dramatically less than new buyers - but it only works after you purchase. Here’s the simple 2025–2026 version every buyer should understand.

When you buy, your home is immediately reassessed at full market value.

This becomes your “base year value” - your tax baseline for decades.

Each year after buying, your assessed value can only increase by up to 2%, no matter how hot the market gets.

This is why people who bought in 2005 pay taxes based on a much lower value today.

Your neighbor may pay tax on a $450K assessment… while you pay tax on the full $900K 2025 price.

Same street, double the bill.

After closing, counties send a supplemental bill -a one-time adjustment to sync the home’s old assessed value with your new one. Many buyers mistake this for an “extra” tax; it’s simply the catch-up.

Not if you buy now - you lock your 2025 value for life and avoid the pricier 2026 baseline.

Prop 19 reshaped who can transfer tax benefits - and who can’t - leading to unexpected 3× tax bills for thousands of heirs in 2025–2026.

Seniors can now transfer their low Prop 13 tax base to a new home anywhere in California, up to 3 times.

This means sellers with a $400K assessed value can downsize or move counties and keep that benefit.

Children can only keep a parent’s low tax base if:

• The home is the primary residence, and
• The child moves in within 1 year.

If not? The home is reassessed at full 2025–26 market value.

In high-value counties (Santa Clara, Alameda, LA), inherited homes are jumping from assessed values of $300K → $1.2M+, triggering 3×–4× increases.

Prop 19 treats non-owner-occupied heir homes like a new purchase - triggering a full reassessment.

California’s Prop 13 protects you after you buy - but the moment you trigger a reassessment, your tax bill can jump dramatically. With 2025–2026 bond measures stacking on top of higher home values, even a minor change can reset your tax baseline and increase your bill for decades.

Here are the real triggers buyers and homeowners overlook:

A simple ADU addition on a $900K home can raise taxes more than 20 years of Prop 13 increases would have.

Lock in your 2025 tax baseline, lower your monthly payment, and claim rebate with reAlpha Mortgage.

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California’s biggest hidden tax cost isn’t the 1% base rate - it’s the stack of local add-ons voters approved between 2024–2026. In many ZIPs, these push effective property tax rates from 1.10% into 1.30%–1.55%+ territory, especially where Mello-Roos (CFDs) still exist.

Mello-Roos = special taxes tied to Community Facilities Districts (CFDs) — common in newer areas of Riverside, Sacramento, Chula Vista, Irvine, and parts of the Bay Area.

• Duration: Usually 25–40 years
• Impact: Often adds 0.2%–1.0% to the tax rate
• Resale: Homes with heavy CFD loads sell slower and require bigger buyer tax budgets

• New school bonds (0.05%–0.12% increases)
• Wildfire & infrastructure levies rising statewide
• Parcel taxes-brutal for condo owners because they’re flat fees, not percentages

Overall bump: +0.15% to +0.25% in many counties.

• Check CFD maps for your ZIP
• Compare non-CFD vs. CFD taxes
• Ask: “Is this parcel tax per unit or per sq. ft.?”
• Run lender DTI impact (CFDs count as housing debt)

If you're comparing business-friendly, fast-growth states - Florida, California, and Texas - the tax conversation matters. Each state uses a different system, but all three offer strong homeowner protections, predictable assessment rules, and long-term appreciation markets. The key difference is how taxes impact monthly payments.

Even though Texas’ rate is higher, its lower median home price keeps annual taxes very competitive.

California’s rate is moderate, but its higher home values raise the annual bill - offset by long-term Prop 13 protection and equity growth in top metros.

Florida offers the most predictable mix: lower rates + homestead portability, making it a strong long-term owner market.

California’s 1.1%–1.3% is mid-range - it’s the home prices that elevate annual bills. Florida and Texas keep costs competitive through lower entry prices or strong owner exemptions.

Curious how California compares to Texas, where effective rates are higher but home prices are much lower? Our Texas property tax guide breaks down the real math.

And if you plan on appealing your assessed value later, understanding appraisal vs. assessment differences is crucial.

Most California homeowners don’t realize they’re leaving $600–$2,400/year on the table because they never claim exemptions or challenge inflated assessments. Here are the real 2025–2026 strategies that actually move the needle.

A simple form cuts your assessed value by $7,000.

Not life-changing, but still: $84/yr saved automatically at a 1.2% rate.

Disabled vets can reduce their taxable value by $100K+, slashing bills by $1,200–$2,000/yr.

Under Prop 19, you can keep your parent’s low tax base only if you make the home your primary residence.

This can save $5K–$12K/yr vs. a full reassessment.

If your home’s assessed value is too high, file an appeal with comps.

Success rate? 30–40% when supported properly.

2025–2026 school and wildfire bonds will raise effective rates in many counties by 0.10%–0.22%.

Buying early locks in today’s lower baseline.

New-build suburbs can add 0.3%–1.0% in extra taxes - thousands per year you can avoid by choosing a non-CFD ZIP.

Not remotely - counties reassess millions of parcels and frequently overshoot.

If you’re hoping California property taxes will drop in 2026… they won’t. Every major indicator points to slightly higher effective rates, not lower ones - and buyers who wait end up locking in a more expensive tax baseline for the next 30 years.

Over half of California counties are pushing school, wildfire, and infrastructure measures onto the 2025–2026 ballots. These add +0.08%–0.20% to many ZIP-level effective rates.

Public safety, wildfire mitigation, and housing programs are expanding. Counties fill gaps with local levies, not lower taxes.

Analysts expect 2%–5% home price growth heading into 2026 as rates cool -which means higher reassessment values for anyone buying next year.

Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.

When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.

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See how much you could save:

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Each month you wait = $100–$220 lost to rising 2026 reassessment baselines.