How to Lower Property Taxes in California: 7 Proven Strategies for 2026

You're likely overpaying on your California property taxes right now. Over 40% of properties in California are over-assessed, meaning owners are paying thousands more than they should. This is especially true for those who purchased property during the 2021-2022 market peak, as these assessments often remain stuck at inflated values.

Understanding how to navigate the appeal process is the key to recovering overpaid taxes and improving your investment returns.

Understanding California Property Taxes

California's property tax system is governed by Proposition 13, which limits your base property tax rate to approximately 1% of the assessed value.

• Annual Caps: Your property’s assessed value can only increase by a maximum of 2% annually unless a change in ownership or new construction occurs.
• The Problem: County assessors often use "blanket" valuation models that ignore property-specific damage or local market nuances.
• The Opportunity: California law allows you to appeal your assessment every single year if the market value drops below your current assessment.

Strategy #1: File an Annual Property Tax Assessment Appeal

The formal assessment appeal is your most powerful tool. You must file this appeal during a specific window to challenge the value on your annual tax bill.

• Deadline: July 2 – September 15 for most counties, including Sacramento.
• Evidence Required: You must provide evidence-based arguments, such as recent comparable sales, photos of property damage, and independent appraisals.
• Success Rates: While DIY research can take over 20 hours, 86% of property owners with professional representation win their appeals.

Strategy #2: Request a Decline-in-Value Reassessment (Section 51)

Under Revenue and Taxation Code Section 51, you can request a temporary reduction if your property's market value has dropped below its assessed value.

This applies if your property has suffered damage (fire, flood) or if local market conditions have deteriorated. Be aware that these reductions are temporary; if market values rise, your assessment will increase back toward its Proposition 13 base year value.

Strategy #3: Leverage Proposition 8 for Immediate Relief

Proposition 8 allows the assessor to temporarily reduce your value when market conditions warrant it.

• Automatic Catch: While assessors should apply these reductions automatically, they often miss qualifying properties due to the high volume of parcels.
• Best For: Owners who purchased at the 2021-2022 peak or those in neighborhoods experiencing significant value declines.

Strategy #4: Document Property-Specific Factors

Assessors use mass appraisal techniques that ignore unique issues that lower a property's value. Documenting these can lead to substantial savings:

• Environmental Issues: Proximity to highways, industrial facilities, or power lines.
• Property Damage: Foundation issues, roof damage, or plumbing problems.
• Obsolescence: Outdated layouts or neighborhood declines.

Strategy #5: Challenge the Assessor’s Comparable Sales

Assessors justify values using recent sales, but these "comparables" are often flawed. You can challenge them by identifying better comparables that reflect your property’s actual condition or by excluding outlier sales that don't represent typical market conditions.

Strategy #6: Monitor Local Market Trends

Understanding local data gives you "ammunition" for your appeal. In Sacramento County, for example, home values corrected 8-12% in many neighborhoods following the 2022 peak. Tracking these trends helps you identify the strongest evidence to support your case.

Strategy #7: Use Technology-Enabled Appeal Services

The traditional process is often paper-only and bureaucratic. Modern technology-driven solutions like LowPropTax have transformed this into a simpler process:

• AI Analysis: Instantly identifies over-assessment opportunities.
• Expert Representation: Handles all filing, documentation, and hearings.
• Transparent Pricing: Avoids traditional consultants who charge 35-40% of savings by offering flat fees for residential properties.

Appealing Your Assessment: The Timeline

Knowing the timeline helps set expectations for your refund:

1. Filing: July 2 – September 15.
2. Hearing: Typically 3–8 months after filing.
3. Decision: Issued 30–60 days after the hearing.
4. Refund: County issues a check for overpaid taxes if successful.

Take Control of Your Property Taxes

Every year you delay an appeal costs you money. An annual overpayment of $1,000 results in $10,000 lost over a decade.

Whether you choose a DIY approach using an evidence checklist or leverage a professional service with an 86% success rate, the most important step is to take action before the September 15 deadline.