California Mortgage Calculator

With a 13.3% top income tax rate and 0.71% property tax, California homeowners face a significant combined tax burden. This calculator is pre-filled with California numbers: $785,000 median price, 0.71% property tax, $1,600/year insurance.

Last updated: March 13, 2026

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Loan Details — California

California median: $785,000

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Below 20% triggers PMI on conventional loans

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Average 30-year fixed ~6.75% (March 2026)

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California average: 0.71%

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California average: $1,600/yr

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Estimated Monthly Payment

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Principal & Interest

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Property Tax

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Insurance

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PMI

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Total Interest Paid

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Total Cost of Home

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California Metro Area Home Prices

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California's Tax Landscape and Your Mortgage

California uses a progressive income tax with a top rate of 13.3%. A household earning $150,000 pays an estimated $12,968-$16,958 in state income tax, depending on filing status and deductions. That's $1,247/month less available for housing costs.

At the state's median home price of $785,000, the $0.71% property tax rate adds $464/month to your mortgage payment. That's $5,574/year — below the national median of ~1.1%.

Property Taxes Across California

The 0.71% statewide average masks significant variation. Prop 13 caps the base rate at 1%, but local bonds and special assessments push effective rates to 1.1–1.3% in many Bay Area and SoCal cities

Price ranges across the state: San Francisco Bay Area has a median of $1,350,000, while Central Valley (Fresno) sits at $385,000 — a $965,000 gap that dramatically changes your monthly payment. At $0.71% property tax, that price difference alone means $571/month more in property tax in San Francisco Bay Area.

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Homebuyer Programs and Exemptions

California offers several programs for homebuyers:

  • CalHFA MyHome Assistance with deferred-payment junior loan up to 3.5%
  • California Dream For All shared-equity program

Homestead exemption: Automatic $300,000–$600,000 protection from creditors (not a tax exemption)

California-Specific Considerations

  • Prop 13 caps assessed value increases at 2%/year — long-term owners pay far less than new buyers
  • Highest state income tax in the nation at 13.3% (plus 1% mental health surcharge above $1M)
  • High-cost county loan limits up to $1,209,750 in Bay Area and LA County
  • Earthquake insurance is separate and not included in standard policies ($1,500–$5,000/year)
  • SALT cap of $10,000 limits federal deductibility of state/local taxes — major impact for high earners
  • Prop 13 caps the base rate at 1%, but local bonds and special assessments push effective rates to 1.1–1.3% in many Bay Area and SoCal cities

Compare California Mortgage Rates

See personalized rates from California lenders. LendingTree matches you with up to 5 offers so you can compare and save.

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How does California compare?

See where California lands on our interactive State Tax & Housing Cost Comparison — plot all 50 states on property tax vs. income tax and adjust for your income and property value.

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Arizona Mortgage Calculator

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0.62% property tax, 2.5% top rate. Median home: $395,000.

Frequently Asked Questions

What is the average property tax rate in California?
The average effective property tax rate in California is 0.71%. On a $785,000 home (the state median), that works out to approximately $5,574/year or $464/month added to your mortgage payment. Property tax rates vary by county and school district within California — always check your specific jurisdiction's rate. Homestead exemption: Automatic $300,000–$600,000 protection from creditors (not a tax exemption)
How much does homeowners insurance cost in California?
The average annual homeowners insurance premium in California is approximately $1,600 ($133/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in California?
CalHFA MyHome Assistance with deferred-payment junior loan up to 3.5%. California Dream For All shared-equity program. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the California housing finance agency website for current eligibility requirements and application deadlines.
How does California's 13.3% income tax affect home affordability?
California's top income tax rate of 13.3% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $12,968-$16,958/year (effective rate is lower than the top marginal rate). The tradeoff: California's relatively low 0.71% property tax rate keeps the housing-specific portion of your tax burden lower. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in California?
The 2026 conforming loan limit in California is $1,209,750 (high-cost area limit — some counties may have the standard $806,500 limit). Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.

This calculator is for educational purposes. Tax rates and insurance costs are based on California state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.

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