Is CA Property Tax Based on the Purchase Price? In the state of California, the assessed price is equal to the purchase price. After a property is purchased, the property assessment may increase annually, but no more than 2%.
A good rule of thumb for California homebuyers who are trying to estimate what their property taxes will be is to multiply their home's purchase price by 1.25%. This incorporates the base rate of 1% and additional local taxes, which are usually about 0.25%.
