The 10 counties with the highest property taxes in California

California is known for a lot of things, but affordable housing isn’t often among them. What catches many homeowners and prospective buyers off guard, however, is that property taxes in the state can quietly eat into thousands of dollars a year, even though California’s effective tax rates look fairly modest on paper. The reality is that when you’re taxing even a small percentage of a million-dollar home, bills add up fast, and in some counties, even faster than most people expect.

Under Proposition 13, California’s base property tax is often capped at 1% of a home’s assessed value, which is locked in at the time of purchase and can only increase by a maximum of 2% per year. On the surface, this once again sounds like a taxpayer-friendly system, and for long-term homeowners, it very well might be. However, once you add in voter-approved bonds, Mello-Roos districts, and local assessments, effective property tax rates can jump to 1.1% and as high as 1.5% depending on where you live.

For new home buyers, the assessed value resets to the full market price, meaning your tax bill is then calculated on what you paid. The result is a wide gap between counties, and those at the top of the list share one thing in common: very expensive homes.

Why Low Rates Still Mean Big Bills in California

If you only look at effective property tax rates, California would seem like a bargain, as the statewide average effective rate is only around 0.74%, which is well below the national average of approximately 0.99%. The reason California ranks among the top 10 states for total property taxes paid is fairly straightforward, as home values are outrageously high. When the median home in San Mateo County is roughly $2 million, even a 0.68% effective tax rate can reflect a $4,424 annual tax bill.

Meanwhile, a homeowner in a state with a 2% rate but a $250,000 home is paying $5,000. The math results in an understanding that California’s low rate is more than offset by the sheer cost of the homes underneath it.

10. Orange County

• $3,404 Median Annual Property Tax

The 10th-most-expensive county in the state, Orange County, has a median home value of around $1.2 million and an annual property tax bill of around $3,404. Areas like Newport Beach, Irvine, and Laguna Beach all ensure that tax bills remain substantial. Mello-Roos districts in communities like Irvine also ensure that new homebuyers face effective rates as high as 1.8% when all assessments are included.

9. Placer County

• $3,441 Median Annual Property Tax

In 9th place, Placer County might be a surprising name on this list as the median home values in the county hover around $682,000. It’s $3,441 median property tax reflects an effective rate of around 0.88%, higher than some of the state’s coastal markets. The area includes cities like Roseville and Rocklin, as well as parts of Lake Tahoe, where Mello-Roos charges can drive up the tax burden.

8. Santa Cruz County

• $3,661 Median Annual Property Tax

With a median home value of around $1.2 million and a median property tax of $3,661, the area of Santa Cruz County has an effective rate near 0.70%. The county’s mix of coastal communities and university towns keeps home prices elevated, and wildfire risks only add to the cost of living here, with added insurance costs.

7. San Benito County

• $3,716 Median Annual Property Tax

San Benito County is another surprising entry on this list, with a median home value of around $755,000 and a median home property tax of $3,716. This implies an effective tax rate of around 0.93%, which is higher than most Bay Area counties and reflects the rise of new housing developers in Hollister that come with Mello-Roos assessments.

6. Contra Costa County

• $3,883 Median Annual Property Tax

Contra Costa County has a median home value of around $889,000, which is vastly more affordable than the Bay Area’s, but its $3,883 property tax bill still lands it on this list. An effective rate of 1.15% reflects significant local tax add-ons.

5. Alameda County

• $3,993 Median Annual Property Tax

Home to both Oakland and Berkeley, Alameda County has a median home value of around $1.19 million, reflecting a median property tax of $3,993. This results in an effective tax rate of 1.21% and is among the highest in the Bay Area, reflecting the addition of both local bond measures and parcel tax inclusions that drive tax bills north.

4. San Francisco County

• $4,311 Median Annual Property Tax

San Francisco is in a unique position as both a county and a city, with median home values near $1.8 million, which drives the tax bill median to around $4,311. This bill is largely due to voter-approved bonds for transit, school, and infrastructure that tacks onto the 1% base rate, leading to an effective rate of around 1.18%.

3. San Mateo County

• $4,424 Median Annual Property Tax

Claiming the highest median home value in the state, north of $2 million, San Mateo County only has a median property tax of around $4,424. This is a textbook example of Prop 13 at work, as many homeowners purchased decades ago and are assessed at a fraction of today’s current market value. Almost 30% of new home purchases are cash deals above $1.5 million, likely leading to future tax increases.

2. Santa Clara County

• $4,694 Median Annual Property Tax

As the heart of Silicon Valley, Santa Clara County has a median home value of $1.94 million, which accounts for its median annual property tax of $4,694. The effective rate of 0.75% reflects the Prop 13 at work once again, as long-term owners pay far less than recent buyers in areas like San Jose, Cupertino, or Palo Alto.

1. Marin County

• $5,500 Median Annual Property Tax

Marin County has the most expensive annual property tax bill in California and has been in this spot for years. Median home pricing sits around $1.47 million, and the county’s 0.63% effective tax rate still yields the state’s highest median tax bill at $5,500 per year. Individual home sales routinely exceed $5 million in areas like Tiburon, Mill Valley, and Ross.