In California, property tax is calculated based on the property's assessed value. The base rate is 1% of the assessed value, plus any voter-approved local taxes and assessments. The assessed value is typically based on the purchase price of the property, adjusted annually for inflation up to a maximum of 2% per year.

Proposition 13, passed in 1978, limits the property tax rate to 1% of the assessed value and caps annual increases in assessed value at 2%. It also requires a reassessment of property to market value upon a change of ownership or completion of new construction.

New construction or significant home improvements trigger a reassessment of the property's value. The increase in value attributable to the new construction is added to the existing assessed value, and this new total becomes the basis for future property taxes.

To estimate property taxes before buying a home, you can use the county assessor’s online tools to check the current assessed value and apply the 1% tax rate plus any local assessments. Real estate listings and the county assessor's office can provide detailed information.

Yes, California offers property tax relief for senior citizens. Programs like the Senior Citizens Property Tax Postponement Program allow eligible homeowners to defer their property taxes. Proposition 60 and Proposition 90 also enable seniors over 55 to transfer their base year value to a new home under certain conditions.

When you inherit a home, the property may be reassessed at current market value unless an exclusion applies. Proposition 58 allows transfers of property between parents and children (and in some cases, grandparents and grandchildren) without reassessment, provided specific conditions are met.