Land records · Parcel maps · October 7, 2026
What Is Proposition 13? California Property Tax
What is Proposition 13? California's 1978 measure capping the property tax rate and limiting yearly assessment increases until sale or new construction.
What is Proposition 13? Proposition 13 is a California constitutional amendment approved by voters in 1978 that limits property taxes. It caps the general property tax rate at 1 percent of assessed value, plus voter-approved taxes for bonds and similar debt. It also sets each property’s assessed value at its 1975-76 value or its value at the time of a later sale or new construction, and limits annual increases in assessed value to the rate of inflation, but no more than 2 percent. As a result, assessed values can fall far below market value for long-time owners. This page is general land-records background, not legal advice.
Key features
| Feature | Effect |
|---|---|
| 1 percent rate cap | Limits general levy, plus voter-approved debt |
| Base year value | Set at purchase or new construction |
| 2 percent annual cap | Limits yearly increases in assessed value |
| Reassessment on change in ownership | Value resets to market at sale |
| Two-thirds vote rules | Applies to certain local special taxes |
Change in ownership
When property changes ownership, the assessor reassesses it to current market value. The preliminary change of ownership report helps the assessor determine this. Mid-year changes trigger supplemental tax bills.
Exclusions
Some transfers do not trigger reassessment, such as transfers between spouses and certain transfers into revocable trusts. Parent-child transfer rules were narrowed by Proposition 19, effective in 2021, which limits the exclusion mainly to family homes that the child uses as a primary residence, subject to a value limit. Proposition 19 also expanded the ability of seniors and certain others to transfer base year values to a replacement home.
New construction
New construction, such as an addition, is assessed at market value and added to the existing base. Repairs and maintenance generally do not trigger reassessment.
Decline in value
If market value falls below the factored base year value, the assessor can temporarily lower the assessment, often called a Proposition 8 reduction. When the market recovers, the value can rise back to the factored base, sometimes faster than 2 percent a year.
Effects
Proposition 13 gives owners predictable taxes but creates large differences between neighbors who bought at different times. It is a well-known type of assessment cap. See how is property tax calculated.
Example
An owner bought a home in 2000 with a base value of $300,000. With yearly increases of up to 2 percent, the assessed value might be around $450,000 today. A new buyer who pays $1.2 million next door is assessed at $1.2 million, so the new buyer’s tax bill is much higher.
Bottom line
Proposition 13 caps California’s general property tax rate at 1 percent, sets assessed values at purchase or construction, and limits yearly increases to 2 percent. Sales and new construction trigger reassessment, with exclusions narrowed by Proposition 19. Find California assessors via the Platbookmapper map.
What is proposition 13 FAQ
What does Proposition 13 do?
It caps property tax rates and limits annual assessment increases.
When is property reassessed under Prop 13?
On a change in ownership or new construction.
How much can assessed value go up each year?
Up to 2 percent, or less if inflation is lower.
Can parents pass Prop 13 values to children?
Only in narrower cases after Proposition 19.
Why does my neighbor pay less tax?
They may have bought earlier with a lower base value.