Land records · Parcel maps · October 7, 2026
Property Assessment Cap: Limits on Value Increases
How a property assessment cap works: state rules limit yearly increases in a home's taxable value, with resets at sale. Florida, Texas, and Michigan.
Property assessment cap is a limit on how much the assessed or taxable value of a property can rise from one year to the next, regardless of how fast market value rises. Many states apply caps to homesteads, and some to all property. When a property sells, the cap usually resets and the value moves up to market. Caps make tax bills more predictable for long-time owners but can create large differences between similar homes owned for different lengths of time. This page is general land-records background, not legal advice.
Examples of assessment caps
| State | Example rule |
|---|---|
| California | Annual increase limited to 2 percent under Proposition 13 |
| Florida | Save Our Homes caps homestead increases at 3 percent or CPI, whichever is lower |
| Texas | Homestead appraised value increases limited to 10 percent per year |
| Michigan | Taxable value increases limited to inflation or 5 percent, with uncapping at transfer |
Rules change, so check current state law.
Cap vs freeze vs exemption
A cap limits growth in value. A senior freeze may stop growth entirely for qualifying owners. A homestead exemption reduces value by a fixed amount. Many owners benefit from more than one.
Resets at sale
When ownership changes, the capped value usually resets to market value. Buyers should estimate taxes based on purchase price, not the seller’s capped value. Florida allows homestead owners to transfer some accumulated benefit to a new homestead, called portability, within limits.
Capped value vs market value
Tax records may show both market value and capped or taxable value. The tax is based on the capped figure. See assessed value vs market value.
Improvements
New construction or additions are usually added at market value on top of the capped base. Routine repairs generally are not.
Recapture
If market value falls below the capped value, the cap has no effect. When markets recover, capped values may rise each year up to the cap until they catch up to market, which can surprise owners whose market value has not changed.
Effects on buyers and sellers
Caps can discourage moving because a new purchase resets taxes. They also shift burden toward newer owners and non-capped property. See what is Proposition 13.
Example
A Florida homestead had a capped value of $200,000 and a market value of $350,000. A buyer pays $360,000. The next year, the property is assessed near $360,000, and the buyer must apply for their own homestead exemption, so the tax bill rises sharply compared to the seller’s.
Checking your capped value
Assessment notices and online records often show the market value, the capped or taxable value, and the exemptions. If the taxable value went up by more than the cap allows and you made no improvements, ask the assessor why. Classification errors or a missing homestead filing are common causes.
Bottom line
A property assessment cap limits yearly increases in taxable value, often for homesteads, and usually resets at sale. Caps vary by state and can make taxes predictable for long-time owners while raising them for new buyers. Estimate taxes on purchase price. Find county assessors via the Platbookmapper map.
Property assessment cap FAQ
What is an assessment cap?
A limit on yearly increases in taxable value.
Does the cap transfer to a new owner?
Usually not; it resets at sale.
Can my taxes rise faster than the cap?
Yes, if tax rates rise or improvements are added.
What is Save Our Homes?
Florida’s homestead assessment cap.
Why is my taxable value lower than market value?
An assessment cap or exemption may apply.