Property tax when you buy

When you buy a California home, the county reassesses it at your purchase price. Your tax is about 1% of that value plus local bonds and fees, and the taxed value can rise no more than 2% a year while you own it.

How the tax is set

• Prop 13 sets the base rate at 1% of the assessed value.
• Local voter-approved bonds and special assessments are added on top. In Peninsula and South Bay cities, the total often lands between about 1.1% and 1.3% of the purchase price. Check the tax bill for the exact parcel.
• The assessed value can rise no more than 2% a year until the home sells or you add new construction.

The supplemental tax bill

After you close, the county sends one or two extra bills for the gap between the seller's old taxed value and your purchase price, for the rest of the tax year. Your lender's impound account usually does not cover it. Set the money aside.

The homeowners' exemption

If the home is your primary residence, file for the homeowners' exemption with the county assessor. It takes $7,000 off the assessed value, which saves about $70 or more a year.

Read the Prop 13 remodel guide

Sources: California State Board of Equalization: Property tax overview, Santa Clara County Department of Tax and Collections, San Mateo County Tax Collector.

General information as of October 21, 2026, not legal or tax advice. Rules change and local ordinances differ. Confirm the details for your property with the agency named above, an attorney, or a tax advisor.