Limits the base tax rate
The general property tax rate is limited to 1% of assessed value, plus voter-approved bonded indebtedness and other authorized charges.
How Proposition 13 shapes California property taxes.
Passed by California voters in 1978, Proposition 13 established rules that generally limit property tax rates and the annual growth of assessed values.
THE SHORT VERSION
Predictable assessments, with important exceptions.
For many properties, the taxable value is based on the purchase price or another established base-year value and generally cannot increase by more than 2% per year for inflation. A change in ownership or new construction can trigger reassessment.
KEY FEATURES
What Proposition 13 generally does
Limits annual increases
The assessed value generally may increase by no more than 2% annually while the property remains under the same base-year assessment.
Sets a base-year value
A purchase or another qualifying change in ownership generally establishes a new base-year value for the property.
Allows reassessment events
Changes in ownership and new construction may result in reassessment, subject to applicable exclusions and California rules.
WHY IT MATTERS
Your assessed value is not always today’s market value.
Because Proposition 13 uses a base-year system, two similar homes can have different assessed values. When market value falls below the applicable assessed value, Proposition 8 may become relevant.
Learn about Proposition 8HOW TO THINK ABOUT IT
Three values can tell different stories.
Market value
What the property might sell for under current market conditions.
Assessed value
The value used by the county to calculate the property tax bill.
Taxable value
The assessed value after applicable exemptions and adjustments.
This page is general educational information, not legal or tax advice. Proposition 13 includes exceptions and related rules that can affect individual properties. Review the official California Board of Equalization guidance or contact your county assessor for details.
