Guide
Homestead assessment caps by state
Published
13 states in this guide cap how fast a homestead's taxable value can rise, from 2% a year in California to 15% in South Carolina. A cap protects long-time owners when home prices jump, and it often matters more than the exemption itself.
Assessment caps by state
| State | Cap | How it works |
|---|---|---|
| California | 2% | Under Proposition 13, homes are reassessed to market value only on a change in ownership or new construction, and the base year value generally cannot rise more than 2% a year. This applies to all real property, not just homesteads. |
| Florida | 3% | Save Our Homes: after the first year with the exemption, the assessed value cannot rise more than 3% or the CPI change, whichever is less. The cap resets after a change of ownership. |
| Nevada | 3% | The owner of a single-family home that is their primary residence gets a partial abatement so the property tax bill does not rise more than 3% over the prior year, not counting new improvements or a change in use. |
| Oklahoma | 3% | The fair cash value of a homestead can rise no more than 3% in a taxable year (5% for other real property). The cap does not apply in a year the property sells or is improved. |
| Oregon | 3% | Maximum assessed value equals 103% of the prior year's assessed value, or 100% of the prior year's maximum assessed value, whichever is greater. Assessed value is the lesser of maximum assessed value or real market value. |
| Arizona | 5% | A property's limited property value, used for taxes, can rise only 5% over the prior year and can never exceed its full cash value. Separately, primary property taxes on residential property cannot exceed 1% of the limited full cash value. |
| Arkansas | 5% | Under Amendment 79, the taxable value of a homestead can rise only 5% per year after a countywide reappraisal until it reaches full assessed value. The cap does not apply to new construction, newly discovered property or improvements that add 25% or more. |
| Michigan | 5% | Each year a property's taxable value can rise by no more than 5% or the inflation rate, whichever is less, plus additions. The cap applies to all property and resets after a transfer of ownership. |
| Alabama | 7% | Since the October 1, 2024 base year, the yearly increase in taxable assessed value of Class III property, including owner-occupied homes, is capped at 7%. The cap is removed after a change of ownership, a reclassification or a significant improvement. |
| District of Columbia | 10% | For homestead property, the taxable assessment can rise no more than 10% a year (110% of the prior year). For owners who also get the senior or disability relief, the limit is 2% (102%). |
| Maryland | 10% | The credit covers taxes on any yearly assessment increase above 10% for state tax, or above the lower cap each county or city sets (every local cap must be 10% or less). Example: an assessment rising from $100,000 to $120,000 is taxed on $110,000. |
| Texas | 10% | A homestead's appraised value cannot rise more than 10% a year over last year's appraised value, plus the value of new improvements. |
| South Carolina | 15% | Value increases from countywide reassessment are limited to 15% within a five-year period. The limit does not apply after a sale or other assessable transfer, and improvements are added at market value. |
Caps reset when you sell
In most cap states, the home's taxable value resets to market value after a sale. That is why a new owner's bill can be much higher than the seller's.
State and county guides in this article
- CACalifornia$7,000 off assessed value
- FLFlorida$50,000 off assessed value
- NVNevadaNo general exemption
- OKOklahoma$1,000 off assessed value
- OROregonNo general exemption
- AZArizonaNo general exemption
- ARArkansas$600 tax credit
- MIMichigan5% assessment cap
- ALAlabama$4,000 off assessed value
- DCDistrict of Columbia$67,500 off assessed value
- MDMaryland10% assessment cap
- TXTexas$140,000 off assessed value
- SCSouth CarolinaNo general exemption
Figures come from the official sources linked on each state and county page. Rules change, so confirm with the official source before you file.