Pre-loaded with California property tax rates, current mortgage rates, and state first-time buyer programs including CalHFA and California Dream For All.
Pre-filled with California averages — adjust to your city and situation. · Updated July 2026
California Fast Facts (2026): Median home price $750,000 · Property tax capped at ~1% by Prop 13 (effective avg 0.75%) · State income tax up to 13.3% · Average 30-year mortgage rate 6.85% · CalHFA programs available for first-time buyers with income limits.
California is one of the most expensive — and most coveted — housing markets in the world. The state's persistent housing shortage, driven by restrictive zoning and geographic constraints, has pushed median home prices to $750,000 statewide, with coastal metros far exceeding that figure. At the same time, California offers a unique advantage unavailable in most states: Proposition 13 (1978) caps property taxes at 1% of purchase price with annual increases capped at 2%, making property taxes relatively predictable even as home values soar.
The California housing market rewards buyers who can afford entry — once in, Prop 13 protections mean your property tax bill grows slowly even as the market appreciates. However, high state income taxes (up to 13.3%) and some of the nation's highest home prices create significant affordability challenges. Programs like CalHFA MyHome and the innovative California Dream For All shared-appreciation loan are designed specifically to help first-generation buyers and those without family wealth bridge the down payment gap in this high-cost environment.
| City | Median Home Price | Year-over-Year Change |
|---|---|---|
| San Jose | $1,420,000 | +4.1% |
| San Francisco | $1,310,000 | +1.8% |
| Los Angeles | $875,000 | +2.6% |
| San Diego | $875,000 | +3.4% |
| Sacramento | $455,000 | +1.9% |
Under Proposition 13, the base property tax rate is 1% of assessed (purchase) value statewide. Additional voter-approved bonds and assessments can push effective rates modestly higher in some areas, but California's property taxes remain among the lowest rates in the nation relative to current market values.
| County | Effective Property Tax Rate | Annual Tax on $750K Home |
|---|---|---|
| Los Angeles | 0.79% | $5,925 |
| San Diego | 0.77% | $5,775 |
| Santa Clara (San Jose) | 0.74% | $5,550 |
| Orange | 0.72% | $5,400 |
| San Francisco | 0.65% | $4,875 |
| Alameda (Oakland) | 0.83% | $6,225 |
| Sacramento | 0.78% | $5,850 |
| Riverside | 0.95% | $7,125 |
| San Bernardino | 0.88% | $6,600 |
| Fresno | 0.82% | $6,150 |
CalHFA MyHome provides a deferred-payment junior loan for down payment and/or closing costs. Assistance is up to 3.5% of the purchase price or appraised value (whichever is less). No monthly payments are due — the loan is repaid when you sell, refinance, or pay off the first mortgage. Income limits apply and vary by county, ranging from approximately $154,000–$300,000 in high-cost counties. Must be paired with a CalHFA first mortgage and used for a primary residence.
An innovative state-funded program providing up to 20% of the purchase price as a no-payment down payment loan. When you eventually sell or refinance, you repay the original loan amount plus 20% of the home's appreciation. This allows buyers to put 20% down (eliminating PMI) without all the cash upfront. The program has been heavily oversubscribed and periodic voucher lotteries determine access — visit CalHFA.ca.gov for current availability, income limits (generally $180,000–$215,000/year), and eligible zip codes.
Using the statewide median home price of $750,000 with a 20% down payment ($150,000), here's what a typical California mortgage looks like in 2026:
| Component | Monthly Cost |
|---|---|
| Loan Amount ($600,000) | — |
| Principal & Interest (6.85%, 30 yr) | $3,923 |
| Property Tax (0.75% avg, Prop 13) | $469 |
| Homeowner's Insurance (est.) | $200 |
| Total Estimated PITI | $4,592 |
Note: California homeowner's insurance premiums have risen sharply in 2025–2026 as major insurers have reduced or exited the California market due to wildfire risk. Expect to budget $150–$300+/month depending on your location and risk zone. In high-risk wildfire areas, insurance may be significantly more expensive or require coverage through the California FAIR Plan.
At the median California home price of $750,000 with 20% down and a 6.85% 30-year rate, your principal and interest comes to about $3,923/month. Adding average property taxes (~$469/month) and homeowner's insurance (~$200/month) brings the total to roughly $4,592/month. In high-cost markets like San Francisco or San Jose, total monthly payments can exceed $8,000–$10,000/month.
Proposition 13 (1978) caps the base property tax rate at 1% of purchase price statewide, with annual increases limited to 2% until the property is sold. This means a homeowner who bought in 2000 pays property taxes based on their 2000 purchase price, not today's market value. Effective rates average about 0.75% statewide, far below national averages. New buyers, however, pay taxes based on their full purchase price.
CalHFA (California Housing Finance Agency) is the state's affordable housing lender. They offer first mortgages with below-market rates and junior loans for down payment assistance. To apply, you work through a CalHFA-approved private lender — not directly through CalHFA. Eligibility requires first-time buyer status (no home ownership in past 3 years), meeting income limits, completing homebuyer education, and purchasing a qualifying property. Visit CalHFA.ca.gov for current lender lists and program details.
No — conventional loans allow as little as 3% down, and FHA loans require 3.5%. However, given California's high home prices, a $750,000 home with 3% down means borrowing $727,500 — requiring a jumbo loan (above the $806,500 conforming limit in most CA counties). CalHFA's Dream For All program can provide up to 20% down with no monthly payment, helping buyers access conventional financing without the cash. Jumbo loan rates typically run 0.25–0.5% higher than conforming rates.
California's homeowner's insurance market has undergone major disruption as insurers including State Farm, Allstate, and Farmers have reduced or stopped writing new policies in many areas due to wildfire risk. The California FAIR Plan (last-resort insurer) has seen enrollment surge. Buyers in high-risk fire zones should budget $300–$800+/month for insurance and factor this cost into affordability calculations. Insurance availability should be confirmed before making an offer in wildfire-prone areas.