There is no California probate tax. The state imposes no estate tax, no inheritance tax, and no special levy on assets passing through probate court. What the estate does pay are statutory fees set by the Probate Code, a handful of court and appraisal costs, and in some cases federal estate tax or a Medi-Cal recovery claim. Heirs who inherit real property face a separate issue that often costs more than probate itself: property tax reassessment under Proposition 19.
What the Estate Actually Pays
The largest cost in a California probate is the statutory fee owed to the executor and the attorney. Both are paid on the same schedule, and both come out of the estate.
Probate Code Section 10800 sets the executor’s compensation, and Section 10810 mirrors it for the attorney:1Justia Law. California Probate Code 10800-10805 – Compensation of Personal Representative2California Legislative Information. California Code PROB 10810 – Compensation of Attorney for the Personal Representative
- 4% on the first $100,000
- 3% on the next $100,000
- 2% on the next $800,000
- 1% on the next $9 million
- 0.5% on the next $15 million
- A reasonable amount set by the court above $25 million
The fee is calculated on the gross value of probate assets, not on the net equity. A home appraised at $800,000 with a $500,000 mortgage still generates fees on the full $800,000. For a $1 million estate, that works out to $23,000 for the executor and $23,000 for the attorney, or $46,000 before anything else is billed. If the case involves litigation, tax disputes, or complicated asset management, the court can approve “extraordinary fees” on top of the statutory amount.
Court Filing Fees
The petition that opens a probate case costs $435 as of 2026, with some counties adding a small courthouse construction surcharge.3Superior Court of California. Statewide Civil Fee Schedule Effective January 1, 2026 Later petitions filed during the case, such as a request for court approval of a property sale, carry the same $435 fee. A petition for special letters of administration without full powers is $200.
Probate Referee Fees
The court appoints a probate referee to appraise non-cash assets like real estate, business interests, and securities. The referee’s commission is one-tenth of one percent of the appraised value, with a floor of $75 and a ceiling of $10,000 per estate.4Justia Law. California Probate Code 8960-8964 – Commission and Expenses of Probate Referee On a $2 million estate, that’s $2,000. The executor can appraise cash accounts and publicly traded stocks without the referee, which trims the bill slightly.
Federal and Income Taxes That Can Apply
The absence of a California estate or inheritance tax does not mean nothing is owed. A few federal tax issues can still come into play.
Federal Estate Tax
The federal estate tax applies only to estates above the exemption threshold, which is $15 million per individual for 2026.5Internal Revenue Service. Estate Tax Married couples can effectively double that through portability of the unused exemption. The exemption is permanent and indexed to inflation. Estates below the threshold owe no federal estate tax and generally don’t need to file a return unless the surviving spouse is electing portability.
Step-Up in Basis
This is the tax rule that works in the heir’s favor, and it matters most when inherited property is later sold. When you inherit an asset, your tax basis resets to the fair market value on the date of death rather than what the deceased originally paid.6Office of the Law Revision Counsel. 26 USC 1014 – Basis of Property Acquired From a Decedent If a parent bought a home for $150,000 in 1985 and it was worth $1.2 million at death, your basis is $1.2 million. Selling later for $1.25 million means capital gains tax on $50,000, not on $1.1 million.
California community property gets an even better result. When the first spouse dies, both halves of the community property receive a stepped-up basis, not just the deceased spouse’s half, which can eliminate large capital gains for the surviving spouse.
Estate Income Tax
If the estate earns income during probate, such as rent, dividends, or interest, the executor must file IRS Form 1041 for any year the estate generates more than $600 in gross income.7Internal Revenue Service. File an Estate Tax Income Tax Return The executor also files the deceased’s final personal income tax return for the year of death. Missing these filings can trigger penalties, and the IRS can hold the executor personally liable for unpaid taxes if the estate was distributed to heirs before the tax bill was settled.
Property Tax Reassessment Under Proposition 19
For many families, the biggest ongoing cost of inheriting California real estate is not probate at all. It’s the property tax bill that arrives after the transfer.
Before Proposition 19 took effect in February 2021, a child could inherit a parent’s home and keep the parent’s low Proposition 13 tax base regardless of what the property was worth or how the child used it. That has changed. The parent-child transfer exclusion now applies only when the home was the parent’s primary residence and the child moves in and uses it as their own primary residence.8California State Board of Equalization. Proposition 19 Family farms also qualify. Investment property, vacation homes, and rental property do not.
Even a qualifying primary residence has a value cap. The exclusion covers the parent’s factored base year value plus $1,044,586 (the adjusted amount for February 2025 through February 2027). If the market value exceeds that sum, the excess gets added to the base year value, partially reassessing the property. If a parent’s factored base year value is $200,000 and the home is worth $1.8 million, the excluded amount is $1,244,586. The remaining $555,414 gets added to the base, producing an adjusted taxable value of $755,414 instead of the full $1.8 million.
To preserve the exclusion, the child must file for the homeowner’s exemption within one year of the transfer and file a claim for the reassessment exclusion within three years.8California State Board of Equalization. Proposition 19 Missing those deadlines forfeits the benefit. If the child later moves out, the property is reassessed to current market value as of the next lien date.
Medi-Cal Estate Recovery
If the deceased received Medi-Cal benefits, the state can file a claim against the probate estate to recover what it paid. A home that was exempt from Medi-Cal’s asset limits during the person’s lifetime becomes fair game after death.
The Department of Health Care Services can seek recovery in two situations: when the deceased was 55 or older at the time of covered services, or when the deceased was a nursing facility patient of any age. The claim is capped at the value of what the estate actually holds. Recovery is blocked if the deceased leaves a surviving spouse or registered domestic partner, a child under 21, or a child who is blind or disabled.9California Legislative Information. California Welfare and Institutions Code 14009.5 Because recovery reaches only probate assets, property held in a living trust or passing by beneficiary designation is outside its reach.
Ways to Reduce or Avoid These Costs
The statutory fee schedule applies only to assets that go through probate. Assets with a built-in transfer mechanism skip the process. A living trust passes property under its own terms. Joint tenancy property goes to the surviving co-owner. Retirement accounts, life insurance, and bank accounts with named beneficiaries pay out directly. Community property with right of survivorship transfers to the surviving spouse without court involvement. Shrinking the probate estate shrinks the fees.
Small Estate Affidavit for Personal Property
If the deceased’s California personal property (bank accounts, vehicles, investment accounts, personal belongings) totals $208,850 or less, heirs can collect it using a simple affidavit instead of opening a probate case. The heir must wait at least 40 days after the death before presenting the affidavit to whoever holds the property, and that waiting period cannot be waived.10Judicial Branch of California. Check If You Can Use a Simple Process to Transfer Property The threshold is adjusted periodically and applies only to assets that would otherwise require probate, so trust property and beneficiary-designated accounts don’t count against the limit.
Simplified Petition for Real Property
Real property valued at $750,000 or less can be transferred through a simplified court petition rather than full probate administration. The threshold increased significantly in April 2025.10Judicial Branch of California. Check If You Can Use a Simple Process to Transfer Property Given California prices, this won’t cover every home, but it is a meaningful shortcut for estates with modest real estate.
Between these simplified procedures and non-probate transfer tools, many California estates can avoid the statutory fee entirely. The ones that cannot should budget for the full schedule, plan for the possibility of a Prop 19 reassessment, and if Medi-Cal benefits were involved, expect a recovery claim before the heirs see anything.