If you're looking at Zillow and wondering why the "estimated tax" on a million-dollar bungalow in Silver Lake looks so different from a similar house in Austin, you've stumbled into the weird, confusing world of California real estate.
Honestly, the "1% rule" you hear everyone talk about is a bit of a half-truth. People say property taxes in the Golden State are a flat 1%. They aren't. Not really.
How much are the property taxes in California?
Basically, your bill starts at 1% of the assessed value, thanks to a famous law from 1978 called Proposition 13. But if you look at a real tax bill from 2026, you’ll see a bunch of extra line items for things like local school bonds, library fees, and "Mello-Roos" assessments.
Because of these add-ons, most new homeowners actually pay an effective rate between 1.1% and 1.5%.
If you just bought a house for $900,000, don't expect to pay $9,000. You’re likely looking at more like $11,000 to $12,500 depending on your ZIP code. The "sticker price" of the tax is never the final price.
The Proposition 13 Magic (and the Catch)
Prop 13 is the reason your neighbor who bought their house in 1995 for $200,000 pays almost nothing, while you, who just bought the house next door for $1.2 million, are getting hammered.
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Here is how the math actually works:
Your "assessed value" is set to whatever you paid for the house. Every year, the county can only raise that value by a maximum of 2% or the rate of inflation, whichever is lower.
Even if the market goes crazy and your home value jumps by 20% in a year, your taxes stay tethered to that original price. It's a massive win for long-term owners. But for you? You’re starting at the top of the market.
What exactly is Mello-Roos?
You'll see this name on a lot of disclosures in newer developments in places like Irvine, Santa Clarita, or the Sacramento suburbs.
Mello-Roos is basically a special tax district. When a developer builds a huge new community, they need roads, sewers, and schools. Instead of paying for them upfront, they create a district that sells bonds.
The homeowners pay those bonds back through their property taxes. In some areas, a Mello-Roos fee can add another 0.5% to your tax rate. Suddenly, your "1% tax" is actually 1.7%. It’s a huge deal-breaker for some buyers, so you've gotta check the "Supplemental" section of the tax report before you sign anything.
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The 2026 Reality: County by County
Rates aren't uniform. Each county has its own flavor of local bonds.
In Los Angeles County, the average effective rate usually hovers around 1.2%.
Orange County is often slightly lower, around 1.1%, unless you're in one of those new-build CFD (Community Facilities District) areas.
The Bay Area is where things get pricey. In Alameda County, you might see rates closer to 1.25% or 1.3% because voters there are historically more likely to approve local school and infrastructure bonds.
Why your first bill will be a mess
Most people get blindsided by the Supplemental Tax Bill.
When you buy a house, the county takes a while to update their records. For the first few months, the "official" tax bill might still be based on the previous owner's (lower) price.
Then, six months later, you get a "catch-up" bill in the mail. This is the difference between what the old owner paid and what you owe based on your new purchase price. It can be thousands of dollars.
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Pro tip: Don't spend your entire "home improvement" budget the first month you move in. Save some for that supplemental bill. It will come.
Can you ever lower your taxes?
There is one big loophole: Proposition 19.
If you are over 55, severely disabled, or a victim of a wildfire, you can actually take your old, low tax base with you to a new home.
Say you sold a house you bought for $100k in the 80s. You can buy a new $1M condo and, under certain rules, keep paying taxes as if the condo only cost $100k (plus some adjustments). It’s a massive benefit that keeps seniors from being "taxed out" of their neighborhoods.
Actionable Steps for 2026 Homebuyers
- Check the Parcel Tax: Ask your Realtor for a "Preliminary Title Report." Look specifically for "Special Assessments" or "CFDs." This is where the hidden costs live.
- File your Homeowner’s Exemption: It’s a tiny $7,000 reduction in your assessed value, which saves you about $70 a year. It's not much, but it's basically a free dinner once a year.
- Approve an impound account: If you don't want to worry about two giant payments in December and April, let your mortgage company handle it through an escrow/impound account. They'll bake the tax into your monthly payment.
- Watch the Lien Date: In California, the "lien date" is January 1st. This is the day the value of your property is "frozen" for the upcoming tax year.
Property taxes in California are definitely weird, but they are predictable once you stop believing the "1% flat rate" myth. Just plan for 1.25% and you’ll rarely be disappointed.