- [First-time home buyers]() [Home]() > [Blog]() > California Property Taxes: What Homebuyers Should Know # California Property Taxes: What Homebuyers Should Know October 10, 2026 [Schedule a consultation **]() **Get a quote** First step ** Only takes 1 minute ## Select a loan type - ** Personalized quote - ** Expert guidance Or [Schedule a consultation **]() ## Property Taxes: One More Expenditure Item for Homeowners So, you have received a mortgage, bought [your dream home in California](), celebrated a housewarming party, and think your monthly payments are reasonable enough to let you live comfortably in the Golden State? Let me disappoint you: clouds are looming where you expected clear skies and bright sunshine. In addition to the regular payback sum you must fork out every month, you also have to pay property taxes on the real estate you have acquired, which ultimately affect its long-term affordability. How come? Why did nobody warn me about that? Well, read on to discover all the details about what most homeowners don't know. ## Property Taxes Explained Strictly speaking, what we will call here "property taxes" are in fact real estate taxes, because the term "property taxes" is often associated with personal movable belongings, such as a vehicle or a boat. However, let's set those chattels aside and focus on the property taxes you pay on the house and land you own. Property taxes of this kind are levied by local governments (towns, cities, and counties). They use the money collected through them to fund public services people in the area enjoy (schools, fire department, road maintenance, law enforcement, you name it). The amount of the taxes is based on the assessed value of your home and land. And – most importantly – they differ across states and even local jurisdictions within one state. What about California? ## California Property Taxes Dissected First of all, you must realize there are no uniform property taxes across the entire Golden State. And it doesn’t depend on whether [property prices in a county are low]() or high. Each local government sets its own tax rate. However, all of them must comply with Proposition 13. This amendment to the California Constitution, passed in 1978, establishes caps on local property taxes within the state and restricts increases in property assessments. How does the system work? - The base tax rate across California is 1% of the assessed property value. - Local taxes are added on top of this amount. - Annual tax increases can’t exceed 2%. - When ownership changes, or the property undergoes new construction, the value resets to the purchase price. Although property taxes are calculated for a fiscal year, they are split into two installments. The first must be paid between November 1st and December 10th, and the second – between February 1st and April 10th of the next calendar year. If you fail to do so within these terms, penalties begin to accrue, so the fine may scale up to 50% of the debt amount (depending on how late you are). ## Important Things to Remember about Property Taxes in California There are some curious details that California homebuyers must know. - The assessed property value isn't the same as its purchase price. The first is determined by local government assessors solely to calculate property taxes. It is relatively fixed and is updated annually. The second comes from the here-and-now agreement between the seller and the buyer of the real estate and is valid only at the moment the deal is completed. - You may receive a supplemental tax bill (sometimes even two) months after you pay your property taxes. This happens because the county reassesses the property after it changes hands and adds the difference between the old and new assessed value to your taxes. - You can learn the property tax amount on a home before you purchase it. This information is available through the local multiple listing service (MLS) or in real estate listings. Alternatively, you can ask the seller for the most recent tax bill. As you can see, property taxes in California have many nuances to consider. To be on the safe side, it is wise to consult [qualified experts in the tax and mortgage fields](). ## How LBC Mortgage Can Help You Our lending firm has operated in the California mortgage market (and 10 other jurisdictions to boot) since 2008, so we know the legislation in the Golden State inside out. At LBC Mortgage, you can not only get competent legal advice on real estate here, but also access one of the [two dozen loan types]() we offer to people living in Cali. With our financial assistance, you can become a homeowner or use the money we lend to acquire commercial property, rental accommodation, and even vacation or Airbnb lodgings. [Contact experienced specialists at our mortgage agency]() for a professional consultation on any aspect of getting a loan and making post-mortgage payments in California. ## California Property Taxes in a Nutshell When you [buy a home in California](), you should understand that real-estate-related expenditures won't be limited to monthly mortgage payments. Twice a year, you will have to pay property taxes equal to 1% of the assessed property value, plus an additional amount set by the local government of the town or county where your house is located. Moreover, it can increase annually by up to 2%, and a supplemental tax bill may arrive when authorities reassess the property after it changes hands. To learn all the legal details pertaining to financial liabilities of a California property owner, [get a consultation from vetted experts in the field](). Make your next move ### What could your mortgage look like? Turn your plans into a conversation. Explore loan options with guidance from LBC Mortgage. [Get my personalized quote **]() **Author:** [Alex Shekhtman CEO & Founder, LBC Mortgage]() [** Previous Post]() [Next Post **]() ## Frequently Asked Questions - ### 1. How can you pay your property taxes? ** You can pay in two ways: either through the mortgage you received to buy real estate or directly at your local tax office. If you want to pay property taxes through your mortgage, you should make sure it includes an [escrow account]() (for some loan types, such as VA or [FHA loans](), it is a default part of the deal). The account that comes as a part of PITI (principal, interest, taxes, and insurance) lets the lender add a portion of property taxes to the monthly mortgage payments they collect. The breakdown of what you pay can be found in your closing disclosure papers. Alternatively, you can discover the total amount in Box 10 of your IRS Form 1098, where the lender reports the sum of your escrow payments if they exceed $600. Paying property taxes through your local tax office involves more headache, but you can’t avoid it if you don’t have a mortgage. Once you receive a bill from them (conventionally it happens once or twice a year), you have several options to choose from. - Visit the tax collector’s office and pay in person. - Send a money order or check by mail. - Pay on the local tax office’s website by electronic check. - Pay online or by phone using your credit or debit card (here, you may have to pay extra fees – usually around 2% or 3%). Anyway, as property taxes are handled locally, you should check the rules of the jurisdiction where your property is situated. - ### 2. Why may California property taxes vary? ** Although the state mandates a 1% rate, the amount you see on a property tax bill is higher because of local voter-approved debt, parcel taxes, recent ownership changes, and new construction. - Local voter-approved debt is calculated based on the property value and administered by the city or school district. It adds an extra percentage to property taxes, which is used to finance schools, community infrastructure (roads, parks, libraries, etc.), and public safety facilities (such as police stations and fire houses). - Uniform or tiered parcel taxes. In California, they are known as Mello-Roos fees. Unlike voter-approved debt, they are based on a property’s square footage or can be flat. Their primary use cases are general operating expenses and programs. Sometimes, they are channeled into funding new public infrastructure or improving the existing one. - Recent ownership changes include property purchase/sale, inheritance, gifting, and equity transfers (such as splitting shares in the property or adding new owners). When it occurs, the local government reassesses the property value and bills the difference to the current real estate owner. - If you add a new bedroom/bathroom, expand the livable area in other ways (such as converting a garage or basement into living space), build a guesthouse, deck, or pergola on your land, or install an in-ground spa or swimming pool, you increase your property’s square footage. Consequently, these renovations trigger reassessments, which affect property taxes down the line. As a result, owners of two identical houses in different California counties with different purchase dates may have to foot drastically different property tax bills. - ### 3. Can I get exemptions from property taxes in California? ** The three types of property tax exemptions that work in California are homeowners’ exemption, welfare & religious exemption, and disabled veterans’ exemption. - Homeowners’ exemption (reduces the property’s assessed value by $7,000). You can qualify for it if you are the real estate owner, co-owner, or shareholder of a cooperative housing corporation. The home must be your principal residence (that is, you live there, receive mail, and are registered to vote) on January 1st. File a claim for the Homeowners’ Exemption (form BOE-266) once before February 15th, and the exemption will renew each year automatically. - Welfare & religious exemptions (100% property tax-free). You are eligible if your property is used exclusively for charitable, scientific, hospital, or religious purposes. To prove it, you should file a local assessor claim and an annual organizational clearance certificate every year by February 15th. - Disabled veterans’ exemption. Depending on your disability rating, the property’s assessed value can be reduced from $100,000 up to $220,000+. A disabled veteran or unmarried surviving spouse should use the house as a primary residence, gather the required documents from the Department of Veterans Affairs, and submit a claim by February 15th. For basic exemptions, you only need to file once, while low-income variations require annual filing. Application forms for any type of exemption should be filed with the local County Assessor’s Office. Your home. Your goals. Your next step. ## Let's find a loan that fits *your life.* Buying or refinancing? Start with your goals. We'll help you explore the possibilities. 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