Real Estate Tax Cap Abatement Calculator

Cap limits assessment growth. This calculator sizes protection.

Current assessed value

Market growth rate %

Cap rate %

Years held

Tax rate %

Cumulative tax savings

$52,612

Capped assessed end

$742,974

Market value end

$1,326,649

How the math works

Each year: savings = (market tax − capped tax). Compound over years.

$500k starting, 2% cap vs 5% market over 20 years: $148k cumulative savings. Capped ends at $743k; market at $1.33M. Prop 13-style protection is real wealth transfer from tax base.

How to Use

Enter current assessed value.
Enter market growth rate %.
Enter cap rate %.
Enter years held.
Enter tax rate %.
Read cumulative cap savings.

Frequently Asked Questions

Cap states?

California (Prop 13): 2% annual. Texas: 10% annual primary residence. Florida (Save Our Homes): 3%. New York City: 6% annual on small properties. Others vary. Homesteads protected; investment often not.

Investment property?

Most states: commercial and investment reassessed at market annually. No cap. Exception: California Prop 13 applies to commercial (until recent ballot measures). Long-held commercial in California: massive below-market assessment.

Impact compound?

2% cap vs 5% market growth over 20 years: assessed = 149% of original, market = 265%. Ratio 56%. On $500k property with $10k tax: $5,600 vs market $13,300. $7,700/yr saved. Over 20 years: $154k total savings.