How to Lower Property Taxes in California: Beyond Prop 13
TL;DR
California's Prop 13 already keeps rates low (around 1% of assessed value), but you can reduce your bill further through Prop 8 decline-in-value appeals, the $7,000 homeowner's exemption, veteran exemptions, senior transfers under Prop 19, and disaster relief provisions. Many California homeowners leave money on the table by not claiming every available reduction.
California homeowners benefit from Proposition 13, which limits the property tax rate to 1% of assessed value (plus voter-approved bonds) and caps annual assessment increases at 2%. But Prop 13 doesn't mean you're stuck with your current bill. There are several legitimate ways to push your taxes even lower.
Here's every method available to California homeowners in 2026.
Method 1: File a Prop 8 Decline-in-Value Appeal
Under Proposition 8, if your home's current market value drops below its Prop 13 assessed value (the factored base year value), you're entitled to a temporary reduction. This happens during market downturns, but it can also apply to individual properties affected by neighborhood changes, nearby construction, or localized market softness.
How to File
- Submit an Application for Changed Assessment to your county's Assessment Appeals Board
- Filing window: July 2 through November 30, 2026 (September 15 in some counties, including LA and Santa Clara)
- No filing fee in most counties
- Provide comparable sales showing your market value is below the assessed value
For a complete walkthrough of the appeal process, see our California property tax appeal guide.
Method 2: Claim the Homeowner's Exemption
If you live in your home as your primary residence, you qualify for a $7,000 reduction in assessed value. At a 1% tax rate, that saves about $70 per year. It's not a lot, but it's free. File Form BOE-266 with your county assessor. You only need to file once unless you move.
For a full list of California exemptions, see our California property tax exemptions guide.
Method 3: Veteran Exemptions
California offers two levels of veteran exemptions:
| Exemption Type | Amount | Who Qualifies |
|---|---|---|
| Basic Veteran's Exemption | $4,000 off assessed value | Veterans with qualifying wartime service |
| Disabled Veteran's Exemption | $161,083 - $241,627 off assessed value (2026, adjusted annually) | Veterans with service-connected disability; income limits apply |
The disabled veteran's exemption is significant and often overlooked. If you have any VA-rated disability, check whether you qualify.
Method 4: Senior Transfers Under Prop 19
Proposition 19 (effective April 2021) allows homeowners age 55 or older, severely disabled persons, and victims of wildfires or natural disasters to transfer their current property tax base to a replacement home anywhere in California. Key rules:
- Available up to three times in your lifetime
- Replacement home can be of equal or lesser value (with adjustments for higher-value replacements)
- Must buy or build the replacement home within two years of selling
- The tax base transfers, meaning you keep your low Prop 13 assessed value
This is especially valuable for seniors who want to downsize but are afraid of a massive tax increase. Before Prop 19, you could only transfer within the same county (or a handful of participating counties). Now you can go anywhere in the state.
Method 5: Parent-Child Transfers Under Prop 19
Prop 19 also changed the rules for parent-child property transfers. If you inherit a home from your parents and use it as your primary residence, you can keep their Prop 13 base value with an adjustment of up to $1 million above that value. This preserves the low tax basis that may have been building for decades.
If you don't live in the inherited property (rental or vacation use), the property gets fully reassessed at current market value. Planning matters here.
Method 6: Request an Informal Review
Before filing a formal appeal, contact your county assessor's office and request an informal review. Many assessors will agree to a reduction without a formal hearing if the evidence is clear. This saves time and avoids the hearing process entirely. Not every county offers this, but it's worth asking.
Method 7: Disaster Relief
If your property was damaged by a natural disaster (wildfire, earthquake, flood, mudslide), you can file for a temporary assessment reduction under Revenue and Taxation Code Section 170. The reduction applies to the damaged portion of your property and remains in effect while the damage exists. Once you rebuild, your assessment returns to the pre-disaster factored base year value, not the current market value.
Method 8: Check for Assessment Errors
County assessors sometimes make mistakes on your property record. Common errors include:
- Wrong square footage or lot size
- Incorrect number of bedrooms or bathrooms
- Improvements that don't exist (pool, garage, addition)
- Wrong property classification
- Incorrect base year value after a transfer or construction
Review your property record on your county assessor's website. If anything is wrong, contact the assessor to request a correction. You may not even need to file a formal appeal.
Method 9: Supplemental Assessment Review
When you buy a home or complete new construction, you receive a supplemental assessment that adjusts your taxes for the remaining portion of the tax year. These assessments are based on the change between the old assessed value and the new one. If the supplemental assessment overvalues your property, you can appeal within 60 days of the notice.
Average Effective Tax Rates by California County
| County | Effective Rate | Median Home Value |
|---|---|---|
| Los Angeles | 0.76% | $780,000 |
| Orange | 0.72% | $900,000 |
| San Diego | 0.73% | $790,000 |
| Santa Clara | 0.68% | $1,400,000 |
| San Francisco | 0.62% | $1,300,000 |
| Riverside | 0.95% | $520,000 |
| Sacramento | 0.85% | $480,000 |
| Alameda | 0.72% | $950,000 |
Frequently Asked Questions
Can my Prop 13 base value ever go down permanently?
No. Your base year value only goes up (by up to 2% per year). Prop 8 reductions are temporary. Once the market recovers, the assessor can raise your value back to the factored base year level. But the savings during down years can be substantial.
Does refinancing trigger a reassessment?
No. Refinancing does not change ownership, so it does not trigger a reassessment under Prop 13.
What about adding a spouse to the title?
Transfers between spouses (and registered domestic partners) are excluded from reassessment. Adding or removing a spouse from the title won't change your assessed value.
How do I know if my assessment is too high?
Compare your assessed value to recent sale prices of comparable homes in your area. If similar homes are selling for less than your assessed value, you likely have grounds for a Prop 8 appeal. Our comparable sales guide explains exactly how to do this.
What about Mello-Roos taxes?
Mello-Roos (Community Facilities District) taxes are separate from the 1% Prop 13 rate and cannot be appealed through the Assessment Appeals Board. They're set by the district and typically appear as a separate line item on your tax bill. They're common in newer developments and can add $2,000-$5,000 per year to your tax bill.
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