I'm not sure how California does it, but property taxes in Washington are not based on the house price so much as it is the value of your home relative to the other homes. Hypothetical scenario, people in your county vote for some public project that will cost $200k per year, and lets say you have 200 homes in the county and they're all valued the same, each house has to pay $1000 in taxes each year (because $200k tax bill divided by 200 homes). If all the houses are valued at a billion dollars, each house still only pays $1000 in taxes. If all the houses are valued at $2.50, they each pay $1000 in taxes each year. Let's say our fictional county has only two houses in the entire county, both valued at $9.95, each of those homes will have a $100k property tax, because the $200k annual tax needs to get paid and it's up to those two homes to produce the money that's needed. Where things get imbalanced is when one home is worth $5 and the other home is worth $10, now the guy with the $5 home is paying 33% of the taxes due ($66,666) and the guy with the $10 home is paying 66% of the taxes ($133,333). It's all an issue of the ratio of what your home is worth relative to other homes. If your house goes up in value in the same proportion to all the other homes then your taxes really won't change much, it's only a problem when your home goes up in value while other homes don't go up. Or, more likely, your taxes are going up because people in your area vote for a lot of stuff that costs money, then those expenses get put right onto your property taxes.