Assessment Cap

An assessment cap limits annual growth in taxable value regardless of how fast the market rises. California’s Proposition 13 caps increases at 2% a year; Texas caps homesteads at 10%; Florida’s Save Our Homes caps at 3%.

Caps can create a gap between market value and capped value, and they usually reset on sale — which is why a newly purchased home can see a large jump. Understanding your state’s cap tells you whether an appeal will actually lower your bill.