In most states there is no limit on how much your property tax can rise in one year. Fourteen states and the District of Columbia cap how fast a home’s taxable value, or in Nevada the tax bill itself, can grow. California’s cap is 2% a year, Florida’s homestead cap is 2.7% for 2026, Texas homesteads are capped at 10%, and Oregon’s is 3%. Four more states have partial limits. Most other states limit what local governments can collect in total instead of capping your home’s value. Even under a cap, a bill can rise faster than the cap when tax rates go up, voters approve new levies, or you lose an exemption. This guide has a 50-state table, three worked examples, and what the November 3, 2026 ballot measures in Oklahoma and Florida would change.
The short answer
- Assessment caps limit value, not your bill. A cap limits how much taxable value can rise each year. Your bill can still rise when tax rates change.
- Most caps protect homesteads, and many end when you sell. In California, Florida, Texas, Michigan, Oklahoma, New Mexico, and South Carolina, a buyer is generally taxed on current market value once the sale is reflected on the roll.
- Many states cap the levy or the rate instead. Massachusetts limits a town’s total levy to 2.5% growth plus new construction. Washington limits each district’s levy to 1% growth. Indiana caps a homestead’s tax at 1% of gross assessed value.
- Capped values keep catching up. When market value is above the capped value, the capped value can rise by the full cap every year, even in a flat or falling market.
- New construction is almost always outside the cap. Additions are added at market value on top of the capped amount. Our home improvements guide explains how.
Three kinds of limits: caps, levy limits, and rate limits
States control property tax growth in three main ways, and many use more than one.
| Type | What it limits | Examples | Can your own bill rise faster? |
|---|---|---|---|
| Assessment cap | How much one property’s taxable value can grow each year | California 2%, Florida 3% or inflation, Texas 10%, Oregon 3% | Yes, if rates rise or new levies pass |
| Levy limit | How much total tax a town, county, or school district can collect | Massachusetts 2.5%, Washington 1%, New York and New Jersey 2% | Yes, if your value rises faster than your neighbors’ |
| Rate or tax limit | The tax rate, or the bill as a share of value | California 1% general levy, Oregon Measure 5, Indiana 1%/2%/3% circuit breaker, Nevada 3% bill cap | Yes, through voter-approved levies, which are usually outside the limit |
A levy limit works on the whole community. In Massachusetts, a town’s levy can grow 2.5% a year plus new growth from construction, according to the Town of Tewksbury’s Proposition 2½ explainer (opens in a new tab), and voters can approve overrides. Your share of that levy depends on your assessment compared with everyone else’s. Suppose the levy grows 2.5%, your assessment rises 12%, and the town’s total assessed value rises 6%. Your bill rises about 1.025 × 1.12 ÷ 1.06, or 8.3%. The Washington Department of Revenue (opens in a new tab) makes the same point about its 1% limit: it “does not apply to individual homes.”
A rate or tax limit caps the result directly. Indiana’s Department of Local Government Finance (opens in a new tab) caps taxes at 1% of gross assessed value for homesteads, 2% for other residential property and farmland, and 3% for other property. Voter-approved school and building referendum levies are outside the caps. A homestead with a gross assessed value of $250,000 cannot be billed more than $2,500 before referendum charges.
Assessment caps and limits by state
This table covers statewide rules for 2026. “Resets on sale” means the buyer’s taxable value can go to market value. Click your state for its full guide, or use the county finder to reach your assessor.
| State | Annual cap? | What is capped, and for whom | Resets on sale? | Other main limit |
|---|---|---|---|---|
| Alabama | Yes, temporary | 7% a year on taxable assessed value of Class II and III real property, including owner-occupied homes and farmland, through the fiscal year starting Oct. 1, 2027 | Yes, except transfers to a spouse or family or at death | Constitutional limits on total millage |
| Alaska | No | — | — | State limits on municipal levies |
| Arizona | Yes | Limited property value rises 5% a year, never above full cash value; most real property | No | Residential tax capped at 1% of limited value; voter-approved levies outside |
| Arkansas | Yes, after reappraisal | Taxable value of a homestead rises 5% a year, other real property 10%, until it reaches full assessed value | Buyer can’t claim the seller’s limit | Assessment freeze for owners 65+ or disabled |
| California | Yes | Base-year value rises no more than 2% a year; all real property | Yes, on change in ownership | 1% general levy plus voter-approved debt |
| Colorado | No | — | — | Non-school local revenue growth limited to 5.25% a year; separate school limit |
| Connecticut | No | — | — | None statewide; towns may phase in revaluation increases |
| Delaware | No | — | — | County levy can rise no more than 15% in the first year after a reassessment |
| District of Columbia | Yes | Taxable assessment of a homestead rises 10% a year; 2% for owners with senior or disability relief | Yes; buyer keeps the seller’s credit only for the half-year of purchase | — |
| Florida | Yes | Homestead: lower of 3% or inflation (2.7% for 2026). Other property: 10% for non-school taxes | Yes, Jan. 1 after the sale; homestead benefit can be ported | Amendment 3 on Nov. 3 ballot |
| Georgia | Partial | HB 581 floating homestead exemption holds taxable value to an inflation-adjusted base, except where the county, city, or school district opted out | Ask your county | Many older local base-year freezes |
| Hawaii | No statewide cap | Each county runs its own property tax system | — | County-set rates by class |
| Idaho | No | — | — | Most district budgets grow at most 3% a year plus new construction |
| Illinois | No | — | — | Tax cap law limits levy growth to the lower of 5% or inflation in covered counties |
| Indiana | No | — | — | Tax capped at 1% of gross value for homesteads, 2% other residential and farmland, 3% other |
| Iowa | Partial | The state “rollback” limits statewide growth in residential taxable value to 3% a year; individual homes can rise more | — | Local levy limits |
| Kansas | No | — | — | — |
| Kentucky | No | — | — | Revenue growth above 4% on existing property can be petitioned to a vote |
| Louisiana | No general cap | Assessment freeze for qualifying owners 65+, disabled owners, and some veterans, under an income limit | Freeze ends on sale | Reappraisal at least every four years |
| Maine | No | — | — | — |
| Maryland | Yes | Homestead credit holds taxable assessment growth on a principal residence to 10% for state tax and 0–10% for local tax (Anne Arundel 2% for FY2027); must apply | Owner-occupant must qualify | Some county charter rate or revenue limits |
| Massachusetts | No | — | — | Proposition 2½: levy grows 2.5% plus new growth unless voters override |
| Michigan | Yes | Taxable value rises by the lower of inflation or 5% (2.7% for 2026); all property | Yes, uncapped the year after a transfer | Headlee millage rollbacks |
| Minnesota | No | — | — | Special refund when a homestead’s tax jumps more than 12% |
| Mississippi | No | — | — | Local levy growth generally limited to 10% a year |
| Missouri | No | — | — | Rate rollback limits revenue growth after reassessment |
| Montana | No | — | — | Limits on growth in local government mills; school levies outside |
| Nebraska | No | — | — | State-funded property tax credits |
| Nevada | Yes, on the bill | Tax bill on an owner-occupied primary residence rises at most 3% a year; up to 8% for other property | Yes; a recorded deed removes the 3% cap until the new owner claims it | — |
| New Hampshire | No | — | — | — |
| New Jersey | No | — | — | 2% levy cap, with exclusions |
| New Mexico | Yes | Taxable value of residential property rises 3% a year | Yes | Valuation freeze for some low-income owners 65+ or disabled |
| New York | Partial | NYC and Nassau County: 1–3 family homes 6% a year and 20% over five years. NYC buildings with up to 10 units: 8% and 30% | No | Levy cap of 2% or inflation, whichever is lower, outside NYC |
| North Carolina | No | — | — | Levy limit amendment on Nov. 3 ballot |
| North Dakota | No | — | — | Levy increases limited without voter approval (HB 1176, 2025) |
| Ohio | No | — | — | Reduction factors on voted levies; 10-mill limit; inflation cap on inside millage from tax year 2026 |
| Oklahoma | Yes | Fair cash value rises 3% a year for homesteads and farmland, 5% for other real property | Yes, in the year of transfer | Senior valuation freeze; SQ 847 on Nov. 3 ballot |
| Oregon | Yes | Maximum assessed value rises 3% a year; all property | No | Measure 5: $5 per $1,000 of market value for schools, $10 for other government |
| Pennsylvania | No | — | — | Rate rollback after a countywide reassessment |
| Rhode Island | No | — | — | Municipal levy cap |
| South Carolina | Yes | Increase from countywide reassessment limited to 15% over five years | Yes, on an assessable transfer | Lower 4% assessment ratio for a legal residence |
| South Dakota | Partial | Each county’s total owner-occupied value can grow 3% a year, for taxes payable 2027–2031; individual homes can rise more | — | Local budget growth limited to 3% over the same period |
| Tennessee | No | — | — | Certified (revenue-neutral) rate after reappraisal |
| Texas | Yes | Homestead: 10% a year. Other real property worth $5.32 million or less: 20% a year through 2026 | Yes, for both | Voter-approval tax rate limits |
| Utah | No | — | — | — |
| Vermont | No | — | — | — |
| Virginia | No | — | — | Rate rollback rule when a reassessment raises total revenue 1% or more |
| Washington | No | — | — | Each district’s regular levy grows at most 1% a year; 1% constitutional limit on regular levies |
| West Virginia | No | — | — | Rate rollback holds revenue to 101% after reappraisal |
| Wisconsin | No | — | — | Local levy limits |
| Wyoming | Yes, under legal challenge | Increases over 4% a year in the assessed value of single-family homes and their land are exempt | Yes; new owners are excluded at first | Proposition 1 on Nov. 3 ballot |
The biggest caps, explained
California: 2% a year from the purchase price
Proposition 13 sets a property’s value when it is bought or built, called the base-year value. The Board of Equalization (opens in a new tab) says it “generally limits annual increases in the base year value of real property to no more than 2 percent, except when property changes ownership or undergoes new construction.” It also limits the general tax rate to 1%, plus voter-approved debt. Our Prop 13 and Prop 19 guide covers transfers between parents and children and moves by owners 55 and older.
Florida: Save Our Homes and the 10% caps
A homestead’s assessed value can rise each year by the lower of 3% or the change in the Consumer Price Index. The Department of Revenue’s CPI table (opens in a new tab) puts that change at 2.7% for 2026. Non-homestead residential property and commercial property have a separate 10% cap, which does not apply to school taxes. The homestead cap ends on January 1 after a sale, but owners moving to another Florida homestead can carry part of the benefit with them. Our Florida homestead guide explains portability.
Texas: 10% for homesteads, 20% for other property through 2026
Under Tax Code §23.23 (opens in a new tab), a homestead’s appraised value can rise to no more than the lower of market value, or last year’s appraised value plus 10% plus the market value of new improvements. The cap starts January 1 of the year after you first qualify for a homestead exemption. Section 23.231 adds a 20% “circuit breaker” for other real property, such as rentals and second homes. It covers property appraised at no more than $5,000,000 in 2024, adjusted for inflation. Jefferson Central Appraisal District (opens in a new tab) lists the limit as $5,160,000 for 2025 and $5,320,000 for 2026. The section expires December 31, 2026. The Harris Central Appraisal District (opens in a new tab) notes that when ownership changes, the limit is removed. Both caps start over with a new owner.
Michigan: inflation or 5%, until the home sells
Michigan taxes property on taxable value, which is the lower of assessed value (half of market value) and capped value. The capped value is last year’s taxable value times the inflation rate multiplier, and the constitution limits that increase to 5%. For 2026 the multiplier is 1.027, according to the Grand Rapids Assessor (opens in a new tab). The same page says homes that changed hands in 2025 had taxable value reset to assessed value for 2026.
Oregon, Arizona, and New Mexico: caps that don’t all reset
Oregon’s Measure 50 lets maximum assessed value grow to the greater of 103% of last year’s assessed value or last year’s maximum. Assessed value is the lower of that number and real market value. Multnomah County (opens in a new tab) notes that values and taxes are “tied to the property, not the owner,” so a sale does not reset them. New construction or remodeling worth more than $18,700 in one year, or $46,200 over five years, is added outside the 3% limit. Arizona’s A.R.S. §42-13301 (opens in a new tab) sets limited property value at last year’s limited value plus 5%, never above full cash value. New Mexico’s 3% limit on residential property does reset. Santa Fe County’s assessor (opens in a new tab) says the property is revalued at market when it sells, has significant improvements, is first added to the roll, or changes classification or zoning.
Oklahoma, South Carolina, Arkansas, and Alabama
- Oklahoma: under Article X, §8B of the constitution, as quoted in the State Question 847 resolution (opens in a new tab), fair cash value can rise no more than 3% a year for homesteads and farmland and 5% for other real property. The cap does not apply in a year when title transfers or improvements are made.
- South Carolina: the Horry County Assessor (opens in a new tab) explains that increases from the countywide reassessment are limited to 15% over five years. The limit does not apply to the year an assessable transfer of interest, such as a sale, is first taxed.
- Arkansas: after a reappraisal, the Department of Finance and Administration (opens in a new tab) says a homestead’s taxable value can rise only 5% a year, and other real property 10%, until it reaches full assessed value. Owners 65 or older or disabled can freeze the assessment. A buyer cannot claim the seller’s limit.
- Alabama: Act 2024-344 (opens in a new tab) limits annual increases in taxable assessed value of Class II and III real property to 7%, starting with taxes collected from October 1, 2025. The Department of Revenue says the cap is removed on most ownership changes and on significant improvements, and lasts through the fiscal year starting October 1, 2027.
Caps on specific places or bills: New York, Nevada, DC, Maryland, Wyoming
- New York: Real Property Tax Law §1805 (opens in a new tab) applies in New York City and Nassau County. It limits class one assessments to 6% a year and 20% over five years, and New York City buildings with fewer than 11 units to 8% and 30%. New construction and improvements are excluded. Elsewhere, the state’s cap limits levy growth to 2% or inflation, whichever is lower, and districts can override it with a 60% vote, according to the State Comptroller (opens in a new tab).
- Nevada: the cap is on the bill, not the value. Clark County (opens in a new tab) applies a 3% cap to the tax on an owner’s primary residence and a cap of up to 8% on other property. Any recorded ownership document removes the 3% cap until the owner files a new claim.
- District of Columbia: the Office of Tax and Revenue (opens in a new tab) says a homestead “may not be taxed on more than a 10 percent increase” in assessed value each year, or 2% for owners receiving senior or disability relief.
- Maryland: the Homestead Tax Credit limits yearly growth in a principal residence’s taxable assessment to 10% for state tax. Counties and towns can set a lower cap. The State Department of Assessments and Taxation’s 2026–27 table (opens in a new tab) lists the local caps. You must apply for the credit.
- Wyoming: a 2024 law, House Bill 45, exempts any yearly increase over 4% in the assessed value of single-family homes and their land. Uinta County’s summary (opens in a new tab) says it does not apply to new owners or new construction until the following year. The State Board of Equalization has argued the cap is unconstitutional. In July 2026 it agreed to keep applying the cap while the case proceeds, Wyoming Public Media reported (opens in a new tab).
Georgia is a special case. Its House Bill 581 floating homestead exemption works like a cap, but each county, city, and school district could opt out, so it may apply to only some lines on your bill. The Department of Revenue bulletin (opens in a new tab) explains that 2026 is the first year the base value is adjusted for inflation.
Worked examples
A Texas homestead after a 25% jump in market value
Hypothetical example (invented numbers, not a real rate). A homestead was appraised at $320,000 last year, equal to its market value. This January the appraisal district puts market value at $400,000, up 25%, with no new improvements.
- Cap: $320,000 + 10% ($32,000) = $352,000. The appraised value is the lower of $400,000 and $352,000.
- At an assumed combined rate of 2.0% before exemptions, tax is based on $352,000 instead of $400,000. That is $960 less this year.
- If the market stays flat at $400,000 next year, the cap allows $352,000 + $35,200 = $387,200. The year after, the appraised value reaches $400,000.
The owner’s value rises 10%, then 10%, then about 3% in a market that rose once and then stopped. That is the catch-up effect, and it is why a bill under a cap can keep rising after prices level off. The $140,000 school exemption still comes off for school taxes. Our Texas homestead guide shows that calculation.
A Florida buyer losing the seller’s Save Our Homes benefit
Hypothetical example. A seller has owned a homestead for 15 years. Its just value is $500,000, but its capped assessed value is $280,000. A buyer closes in June 2026.
- For 2026, the bill stays on the seller’s $280,000, because the value is set as of January 1.
- On January 1, 2027, the assessed value resets to just value, $500,000. That is 79% higher before exemptions.
- At an assumed 17 mills, tax on $280,000 is $4,760. Tax on $500,000 is $8,500, about $3,740 more a year before the buyer’s own homestead exemptions.
Budget for the buyer’s bill, not the seller’s. Our guide to researching property taxes before you buy shows how to estimate it, and property tax prorations at closing explains why the first escrow payment is often too low.
A California home bought in 2005
Hypothetical example. A home was bought in 2005 for $500,000. Prop 13 lets its base-year value rise no more than 2% a year, so after 21 years the factored value can be at most $500,000 × 1.0221, or about $757,800. The real figure is usually somewhat lower, because the statewide inflation factor was below 2% in some years.
- If the home would sell for $1.2 million today, the 1% general levy on the owner’s value is at most about $7,580. A buyer at $1.2 million would pay $12,000 at the same rate.
- Both owners also pay voter-approved bond rates and any direct assessments, which are not limited by the 2% cap.
- If the market fell below $757,800, the assessor would have to enroll the lower market value under Proposition 8 (opens in a new tab). The value could then rise more than 2% a year until it was back to the factored base-year value.
Why bills can rise faster than the cap
- Rates and levies. A cap limits value. Your bill can still rise if a city raises its rate, a school bond passes, or a new special district starts taxing.
- Catch-up toward market. When capped value is below market value, it rises by the full cap each year even if the market is flat. Florida’s Department of Revenue says in its Save Our Homes brochure (opens in a new tab) that assessed value can rise by the capped amount after a market dip, up to just value.
- Improvements. Additions, pools, and new buildings are added outside the cap in nearly every state.
- Lost eligibility. Renting out a homestead, moving, or failing to reapply can end a cap. So can a deed change, such as adding a person to the title or moving the home into a trust or LLC, in some states.
- Expiring rules. Texas’s 20% circuit breaker expires December 31, 2026, and Alabama’s 7% cap runs through the fiscal year starting October 1, 2027, unless lawmakers extend them.
Ballot measures on November 3, 2026 that would change caps
Two states vote on assessment caps this fall. Our November 2026 ballot measures guide covers these and other measures.
| Measure | Cap today | Cap if approved | Starts |
|---|---|---|---|
| Oklahoma SQ 847 (opens in a new tab) | 3% homesteads and farmland; 5% other real property; full freeze for qualifying seniors | 1.75% homesteads and farmland; 4% other; seniors 0% to 1.75% depending on income | Tax year 2027 |
| Florida Amendment 3 (opens in a new tab) | 10% for non-homestead residential and commercial property | 5%, plus a larger homestead exemption for non-school taxes | January 1, 2027 |
Under SQ 847, a senior with household income at or below the area median would keep a full freeze. Seniors with higher incomes would get caps of 0.35%, 0.7%, 1.05%, 1.4%, or 1.75%, rising with income. Florida’s amendment needs 60% approval. Neither measure lowers a 2026 bill or limits tax rates.
What to do next
- Find both values on your notice. Look for market value and the capped, limited, or taxable value. The gap between them is the protection your cap is giving you, and the amount still to catch up.
- Make sure you qualify. Caps in Texas, Florida, DC, Maryland, and Oklahoma depend on a homestead exemption or credit. If it’s missing, apply now. Our homestead exemption guide lists deadlines.
- Appeal market value, not the cap. A cap doesn’t stop you from challenging market value. A lower market value matters most once the capped value catches up. See how to prepare an appeal.
- Before you buy, use market value. In states where caps reset, estimate the tax at the price you will pay, not the seller’s bill.
- Before you change the deed, ask the assessor. Adding a person, moving into a trust, or forming an LLC can count as a transfer in some states.
- Watch rates and ballots. Budget hearings and levy votes move your bill as much as value does. Find your local offices through the county finder.
Frequently asked questions
Is there a limit on how much property taxes can go up each year?
In 14 states and DC there is a statewide limit on how fast a home’s taxable value, or in Nevada the bill, can grow. Four more have partial limits. Elsewhere, value can rise with the market, and the main control is a limit on the total each local government can collect.
Which states have a 2% or 3% property tax cap?
California caps base-year value growth at 2%. Florida homesteads are capped at the lower of 3% or inflation (2.7% for 2026). Oregon, New Mexico, and Oklahoma homesteads use 3%. Nevada caps the bill on a primary residence at 3%. New York and New Jersey use 2% levy caps, which limit total collections rather than your bill.
Does my assessment cap transfer to the buyer when I sell?
Usually not. In California, Florida, Texas, Michigan, Oklahoma, New Mexico, and South Carolina, the buyer starts at market value. Oregon and Arizona are exceptions, because their limited values stay with the property. Florida lets you carry part of your benefit to your next Florida homestead.
Why did my Texas appraisal go up exactly 10%?
Your market value is above your capped value, so the appraisal district raised the capped value by the full 10% allowed. It can keep doing that each year until the capped value reaches market value, plus the value of any new improvements.
Can my assessed value go up when home prices go down?
Yes, if your capped value is still below market value. It can keep rising by the cap amount until it meets market value. In New York City, class one assessments can keep rising under the 6% cap even when market value falls, until they reach the target share of market value.
Do caps apply to additions and new construction?
No, in nearly every state. New construction is added at market value on top of the capped amount, and the cap then applies to the new total in later years.