Where your property tax goes
None of it goes to the federal government, and very little to the state. Most of it pays for schools. The City of Cupertino gets only about 7 cents of each dollar of the basic 1% tax (about 6 cents of the whole bill, once voter-approved bonds are added).
Last checked Oct 20, 2026 · Tax rates FY 2025–26 (the 2026–27 rate book is usually published in November) · Fixed charges FY 2026–27
The 1% base tax, split
Every California property pays 1% of its assessed value. In Cupertino, each dollar of that 1% is shared like this:
| Who gets it | What they spend it on | On $1M |
|---|---|---|
| Schools: Cupertino Union, Fremont Union HSD, Foothill–De Anza, County Office of Education | Teachers and classrooms. All three local districts are "community funded": local property tax is their main income, not state aid. | $4,800 |
| Santa Clara County | Hospitals and health care, social services, courts and jails, the Sheriff, elections, and running the tax system. Likely includes County Fire and the County Library, which the city's figures don't separate. | $3,500 |
| ERAF | A state-created fund that moves property tax from cities and counties to schools. It reduces what the state itself spends on schools, so it's the closest thing to a "state" share. | $700 |
| City of Cupertino | Streets, parks, planning, the library building, and the contract with the Sheriff for police. | $700 |
| Other districts | Valley Water, Midpeninsula Open Space, Bay Area air quality and others. | $300 |
Split from the City of Cupertino's Budget at a Glance (the same 7% for three years running). Countywide, cities average about 10%, and Sunnyvale gets about 13¢.
Why the city gets so little
The split was frozen after Prop 13 in 1978, based on each agency's tax rate back then. Cupertino had almost no property tax of its own, so it's one of four "no/low property tax" cities in the county. A state rule tops it up to about 7%, and that's where it has stayed.
So the city lives on sales tax. For years Apple booked its California online sales through Cupertino and the city shared the money back with Apple. In 2023 the state tax agency ruled that money had been misallocated, cutting the city's expected sales tax by about $30 million a year.
The extra 0.16%: voter-approved bonds and levies
On top of the 1%, voters have approved bonds and levies. They're charged as a percentage of assessed value, so they grow with your home's value.
| Line on your bill | Rate | On $1M |
|---|---|---|
| Fremont Union High School bonds (2008, 2014, 2018, 2022) | 0.0417% | $417 |
| County retirement levy (county pensions) | 0.0388% | $388 |
| Cupertino Union elementary bonds (2001, 2012, 2024) | 0.0335% | $335 |
| Foothill–De Anza college bonds (1999, 2006, 2020 Measure G) | 0.0311% | $311 |
| County housing bond (2016 Measure A) | 0.0056% | $56 |
| County hospital (VMC) bond, 2008 | 0.0052% | $52 |
| County Library retirement levy | 0.0024% | $24 |
| Midpeninsula Open Space bond, 2014 | 0.0014% | $14 |
| Total with the 1% | 1.1597% | $11,597 |
Tax rate areas 013-002 and 013-003, which cover most of Cupertino, have identical rates. A Valley Water state water project charge (0.0039% of land and improvements, about $39 on $1M) is billed separately. Cupertino the city has no voter-approved debt.
Flat charges on the same bill
These are the same dollar amount whatever your house is worth:
| Charge (2026–27) | Goes to | Per year |
|---|---|---|
| Sewer service | Cupertino Sanitary District | $826.20 |
| High school parcel tax | Fremont Union HSD | $98.00 |
| Safe, Clean Water tax | Valley Water | $82.41 |
| Clean water and storm protection fee | City of Cupertino | ~$62 |
| Library special tax | Santa Clara County Library | $33.66 |
| Mosquito and vector control | County | $30.86 |
| Bay restoration (Measure AA) | SF Bay Restoration Authority | $12.00 |
| Total | ~$1,145 |
The storm fee depends on lot size. Cupertino Union has had no parcel tax since its Measure A expired in 2023. The sewer charge is the biggest one, and most owners never notice it is their sewer bill.
Why your neighbor pays a very different amount
Under Prop 13, a home is assessed at its purchase price, then can rise at most 2% a year until it sells. The city's median home price of $2.76 million means a recent buyer pays about $32,000 a year in property tax. An identical house next door owned since the 1990s may be assessed at a small fraction of that and pay a few thousand dollars. It's legal and it's the norm here.
How to pay less
Federal deduction: the SALT cap is now $40,000
Often $5,000–10,000 a yearFrom 2025 you can deduct up to $40,000 of state and local taxes (property tax plus California income tax) on your federal return, up from $10,000. It's $40,400 for 2026, phases down above about $505,000 of income and returns to $10,000 in 2030. Many owners here itemize again for the first time since 2017.
How: tell your tax preparer, or itemize on Schedule A.
Homeowners' exemption
~$81 a year$7,000 off your assessed value if you live in the house on January 1. It's lost when the house is put into a trust or re-deeded, which happens a lot here. Look for "HOMEOWNERS EXEMPTION" on your bill.
How: form BOE-266 to the County Assessor. File by Feb 15 for the full amount (80% by Dec 10).
Seniors: stop paying the school parcel tax
$98 a yearOwners 65 or older (by June 30, 2027), or on SSI/SSDI, can be exempted from the Fremont Union HSD parcel tax.
How: apply to Fremont Union HSD (fuhsd.org, "Parcel tax exemptions") by June 30, 2027.
Low-income seniors: Valley Water exemption
$82 a yearFor owner-occupants born before June 30, 1962 with 2025 household income below $75,112. Apply once; it carries over.
How: Valley Water, April 15 to June 30 each year.
Disabled veterans
$2,100–$3,140 a year$180,671 off assessed value in 2026, or $271,009 if household income is $81,131 or less.
Bought near the 2022 peak? Ask for a value review
If your home is worth less than its assessed value on January 1, the Assessor can lower it temporarily (Prop 8). The 2026 informal window was June 30 to Aug 8; formal appeals run July 2 to Sept 15.
Seniors on limited income: postpone the tax
The State Controller's program lets owners 62+ (or blind or disabled) with at least 40% equity postpone property tax at 5% simple interest. Reapply every year; funding is limited.
Dates
- Dec 10: first installment due. Late: 10% plus $20.
- Feb 15: homeowners' exemption deadline for the full year.
- Apr 10: second installment due. Late: 10% plus $20.
- July 2 – Sept 15: formal assessment appeals.
See your own bill and its line-by-line split on the county's site: payments.sccgov.org and the "Where my taxes go" tool.
- Santa Clara County Tax Rate Book 2025–26 (p. 51)
- City of Cupertino: Budget at a Glance FY 2023–24
- Cupertino: no/low property tax city fact sheet
- Mercury News: Cupertino pays Apple $12.1M after sales tax settlement
- Cupertino Sanitary District (Ordinance 137, May 2026) · FUHSD parcel tax exemptions · Valley Water senior exemption
- Assessor information booklet · BOE: disabled veterans' exemption 2026 · State Controller: postponement
- Kiplinger: SALT deduction 2026
Facts are checked against the public sources listed on each page. Rates change every year; each page shows when it was last checked. Individual bills are confidential in California, so personal numbers are estimates from public rates. Nothing here is legal, tax or insurance advice.