California Mortgage & Property Tax Guide 2025
California has an average property tax rate of 0.73% and a state income tax of 1–13.3%. The median home price is approximately $750,000.
Is California a Good State to Buy a Home?
California offers world-class weather, economy, and lifestyle, but high income taxes and home prices make affordability challenging. Prop 13 protects existing homeowners from rapid property tax increases.
Property Tax in California
On a $750,000 home in California, you would pay approximately $5,475/year (456/month) in property taxes at the 0.73% average rate. Rates vary by county.
What is the average mortgage payment in California?
For a $850,000 home with 20% down at 7.2% over 30 years, expect to pay approximately $5,300/month including property tax and insurance in California.
How much income do I need to buy a house in California?
To comfortably afford a $850,000 home in California (28% DTI rule), you typically need a household income of at least $227,000/year.
Does California have a first-time home buyer program?
Yes. California offers state-level down payment assistance and mortgage credit certificate programs for eligible first-time buyers. Contact your local housing finance agency for current income and purchase price limits.