7 California Property Tax Strategies That Actually Save You Money

California homeowners pay some of the highest property tax bills in the country. The median property tax in counties like Marin exceeds $11,000 annually. But here's what most people don't realize: you have more control over your property tax bill than you think.

The problem? Most homeowners never explore the strategies available to them. They pay whatever shows up on their tax bill without question. That's money left on the table—sometimes thousands of dollars every single year.

Let's walk through seven practical strategies California homeowners can use to legally reduce their property taxes. Some take five minutes. Others require a bit more effort. All of them can put real money back in your pocket.

1. Claim Your Homeowners' Exemption (The Easy $70)

This one takes about three minutes and saves you money every year for as long as you own your home.

California offers a Homeowners' Exemption that reduces your assessed value by $7,000. At a 1% tax rate, that's roughly $70 per year in savings. Not life-changing, but it's free money you're leaving behind if you haven't filed.

The catch? You have to apply. Many counties send the form automatically after you buy, but not all. Check with your county assessor if you've never filed. Once approved, you don't need to reapply unless you move.

Requirements are simple: you must own and occupy the property as your primary residence as of January 1. Rental properties and second homes don't qualify.

2. File a Proposition 8 Decline-in-Value Appeal

If your home is worth less than the county thinks, you shouldn't pay taxes on phantom value.

Proposition 8 (passed in 1978, same year as Prop 13) allows homeowners to request a temporary reduction when their property's market value drops below its assessed value. This happens more often than you'd expect—especially after market corrections, neighborhood changes, or property damage.

Here's how it works: Under Prop 13, your assessed value can only increase by 2% per year. But if the market dips and your home is actually worth less than your assessed value on January 1, you can appeal for a reduction.

For example: You bought your home for $800,000 in 2020. By January 2025, your assessed value has grown to $866,000 (the 2% annual increases). But comparable sales show similar homes selling for $780,000. You're being taxed on $86,000 of value that doesn't exist.

A successful Prop 8 appeal could save you $860+ annually until the market recovers.

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3. Challenge Base Year Value Errors (Prop 13 Appeals)

Mistakes happen during property transfers. Catching them can save you money for decades.

When you buy a home, the county establishes a "base year value"—typically the purchase price. But assessors sometimes make errors: they might include personal property in the assessment, use the wrong sale price, or fail to account for seller concessions.

A Prop 13 base year appeal corrects these errors permanently. Unlike Prop 8 reductions (which are temporary), a successful Prop 13 appeal lowers your base value forever—and every future 2% increase is calculated from that lower starting point.

Review your assessment notice carefully after any purchase. If something looks wrong, you typically have until September 15 or December 1 (depending on your county) to file an appeal.

4. Use Proposition 19 If You're 55 or Older

Seniors can now take their low property tax base with them when they move—anywhere in California.

Before Proposition 19 passed in 2020, moving to a new home meant losing your Prop 13 protection. Someone who bought in 1990 for $200,000 would face a massive tax increase if they downsized to a home currently worth $900,000.

Prop 19 changed that. If you're 55 or older (or severely disabled, or a wildfire/disaster victim), you can transfer your existing property tax base to a new primary residence anywhere in California. You can do this up to three times in your lifetime.

Important details:

• If your new home costs more than your old home, the difference gets added to your transferred base value
• You must buy the replacement home within two years of selling
• Both properties must be your primary residence
• You must file a claim with the county assessor within three years of purchase

This is a game-changer for empty nesters and retirees who want to move without a tax penalty.

5. Apply for the Property Tax Postponement Program

Eligible seniors can defer their property taxes entirely—no payments until they sell or pass away.

California's Property Tax Postponement Program lets homeowners who are 62+, blind, or disabled postpone paying their property taxes. The state essentially pays your taxes and places a lien on your home. You pay them back (with 7% interest) when you sell, move, or the home transfers to non-eligible heirs.

Requirements include:

• Age 62+ (or blind/disabled) as of December 31
• Annual household income of $55,181 or less
• At least 40% equity in your home
• Property must be your primary residence

Applications are accepted October through February each year. This isn't for everyone—you're trading current cash flow for future debt—but it can be a lifeline for asset-rich, cash-poor seniors.

6. Check for Assessment Errors and Discrepancies

Assessors make mistakes. Outdated square footage, wrong lot sizes, and phantom improvements happen all the time.

Pull your property's assessment record and compare it to reality. Common errors include:

• Incorrect square footage (often inflated from permits that were never built)
• Wrong lot size
• Bedrooms or bathrooms that don't exist
• Pool or ADU listed when you don't have one
• Failure to remove value for demolished structures

If you find discrepancies, contact your county assessor's office directly. Many errors can be corrected administratively without a formal appeal.

7. File a Calamity/Misfortune Claim for Property Damage

If your property was damaged by fire, flood, or other disaster, you may qualify for immediate tax relief.

California Revenue and Taxation Code Section 170 provides for temporary assessment reductions when property suffers damage from misfortune or calamity. This includes earthquakes, fires, floods, and other disasters—but also things like landslides, sinkholes, or even major structural failures.

The reduction is based on the percentage of value lost. If a wildfire destroys 40% of your home's value, your assessment should drop 40% until the damage is repaired.

You must file a claim with your county assessor within 12 months of the damage. Don't wait—the sooner you file, the sooner your taxes are reduced.

Know Your Deadlines

Assessment appeals in California have firm deadlines. Miss them and you're stuck paying the full amount for another year.

Most California counties have one of two filing periods:

• September 15 deadline: Alameda, Alpine, El Dorado, San Francisco, San Luis Obispo, Santa Barbara, Santa Clara, Ventura, and a few others
• December 1 deadline: Los Angeles, Orange, Riverside, Sacramento, San Diego, and most other counties

The filing period begins July 2 in all counties. If you're unsure about your county's deadline, check with the State Board of Equalization or your local Assessment Appeals Board.

The Bottom Line

California's property tax system is complicated. Prop 13, Prop 8, Prop 19, exemptions, appeals—it's a lot to navigate. But that complexity also creates opportunities. Homeowners who understand the rules can save hundreds or thousands of dollars every year.

The strategies above work. They're legal, available to most homeowners, and many require just a simple form or phone call. Others—like Prop 8 decline-in-value appeals—take more work but can deliver substantial savings.

If you'd rather not figure this out yourself, that's where we come in. TaxDrop handles property tax protests for California homeowners from start to finish. We analyze your assessment, file the paperwork, and represent you at hearings. You only pay if we win—a percentage of your actual savings.

Ready to see if you're overpaying? Get your free property tax analysis and find out in less than three minutes.