How to Use the Property Tax Assessment Cap Calculator
Unlike Korea's cap, which limits how fast the tax bill itself can rise, California's Proposition 13 and Florida's Save Our Homes limit how fast the assessed value used to calculate the bill can rise. Under Prop 13, assessed value can grow by at most 2% per year no matter how much the market value jumps, and the property is only reassessed to full market value when it's sold or transferred. Florida's Save Our Homes cap works the same way for homesteaded properties, but allows up to 3% growth (or CPI, if lower).
This means two neighbors with identical homes can pay wildly different property taxes if one has owned their home for 20 years and the other just bought in — the long-time owner's assessed value has been capped year after year, while the new buyer's assessment resets to the full purchase price. This effect is one of the most debated features of both laws.
Enter your prior year's assessed value, this year's market value, and your local tax rate to see your capped assessed value and estimated tax bill. Actual rates and cap rules vary by county and by whether the property is a primary residence, so treat this as an illustrative estimate rather than an official assessment.
Frequently Asked Questions
Under Prop 13, a property's assessed value can only increase by up to 2% per year regardless of how much the market value rises, and the tax rate is generally capped around 1% of assessed value. Reassessment to full market value happens only when the property changes ownership.
Florida's Save Our Homes cap limits annual assessed value growth on a homesteaded property to the lower of 3% or the CPI inflation rate, slightly more flexible than California's flat 2% cap, but the concept is the same.