Property Tax Cap

A Property Tax Cap is a legal limit on how much property taxes can increase in a given year. Essentially, it protects property owners from steep tax hikes by capping the percentage increase, often tied to inflation or a specific rate. This measure helps maintain affordability and predictability for homeowners and businesses, ensuring that tax burdens don't rise excessively from year to year. Various states or localities may have different rules and limits regarding these caps, reflecting their unique economic conditions and policy goals.