How are property taxes calculated in California?

Property taxes in California are determined by multiplying the assessed value of the property by the local tax rate. This method reflects the California property tax system, which is primarily governed by Proposition 13, enacted in 1978. Under Proposition 13, the assessed value of a property is generally capped at its purchasing price, plus limited annual increases (usually tied to inflation).

The local tax rate is set by individual municipalities and can vary depending on various factors such as the funding needs of schools, libraries, and public safety. By multiplying the assessed value, which is typically the property's market value at the time of purchase adjusted for inflation, by this local tax rate, you arrive at the total property tax that the owner is responsible for paying.

This foundational knowledge of California's property tax system is important for understanding how local governments finance essential services and infrastructure. The focus on the assessed value and local tax rate maintains a consistent and understandable method for calculating property taxes across the state.