California note · Home and property
Prop 13's 2 percent limit is on the factored base-year value
A property's factored base-year value usually grows by the lower of California inflation or 2 percent, but a temporary Proposition 8 value can rise faster.
Start with three county figures. Find the assessed value and the factored base-year value. Also check for a Proposition 8 decline-in-value status.
The base-year value is generally the 1975 value. A new one may be set when the property changes ownership or gets new construction. State law has some exclusions. Each year, the base-year value is adjusted by the lower of two amounts: the change in the California Consumer Price Index or 2 percent. The result is the factored base-year value.
January 1 is the lien date for the annual assessment. On that date, the assessor uses the lower of the factored base-year value or current market value. A temporary Proposition 8 cut can later rise by more than 2 percent in one year as the market comes back. But it cannot rise above the factored base-year value unless there is another change in ownership or new construction.
So, the 2 percent limit does not cap every rise in assessed value. It also does not cap the full tax bill. Proposition 13 limits the tax rate to 1 percent, plus the rate needed for bonded debt that voters approved. Ask the assessor about the value. Ask the tax collector about the bill.
Official sources
Official source trail
Reviewed July 14, 2026
California Porch explains the path. The official source is still the place to confirm the current rule, fee, form, map, deadline, or office decision.
Use the official page before you spend money, file paperwork, rely on a deadline, or change a property.
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