Calculate California mortgage payments with Prop 13 property tax. Compare LA, San Francisco, San Diego markets. Free CA mortgage calculator.
California has unique property tax rules under Proposition 13 — property taxes are capped at 1% of purchase price plus special assessments and can only increase 2% annually regardless of home appreciation. This means a home bought for $800,000 has permanently lower taxes than a neighbor who bought the same house for $1.5M. This calculator explains the full picture.
Under Prop 13: property assessed at purchase price, tax rate capped at 1% of assessed value plus local bonds and special taxes. Annual increases capped at 2%. Average effective rate in CA: 0.7-0.8% much lower than national average 1.1%. On $800,000 home: approximately $6,400-$7,000/year or $533-583/month in property taxes.
Most expensive: San Francisco median $1.3M, San Jose $1.4M, LA $850,000. Most affordable CA markets in 2026: Fresno $380,000, Bakersfield $360,000, Stockton $450,000, Sacramento suburbs $550,000. Long commute to major employment centers trades lower housing cost for time cost.
California base property tax is 1% of assessed value under Prop 13. Additional local assessments typically add 0.1-0.5%. Total effective rates average 0.7-0.8% statewide — significantly lower than Texas 1.8% or New Jersey 2.2%. This makes monthly ownership costs slightly less than the high purchase price suggests.
Median California home $850,000. With 20% down $170,000: $680,000 mortgage at 7% = $4,524/month PI plus $550 taxes plus $200 insurance = $5,274/month PITI. 28% rule: $226,000 annual income needed. Many California buyers use dual income, family gifts, or lower down payments to stretch further.
Mathematically renting often wins in California's high price-to-rent markets. But building equity in appreciating California markets has created significant wealth for homeowners. Key factors: how long you plan to stay with break-even typically 7-10 years, local appreciation trends, and your available down payment.
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