How property taxes are calculated varies by state — but the structure is consistent. Understanding the formula lets you predict your bill, compare properties intelligently before you buy, and quickly identify when you’re being overcharged.
California: Proposition 13 and Acquisition Value
California operates under Proposition 13, passed in 1975, which fundamentally changed how property is taxed. Under Prop 13, your property is assessed at its purchase price when you buy it. From that point, the assessed value can only increase by a maximum of 2% per year — regardless of how much the property actually appreciates.
The base tax rate is 1% of assessed value plus local voter-approved bonds and assessments, which typically push the effective rate to 1.1–1.3% in most California counties.
California reassesses the property at market value when it sells, which means long-term California homeowners often pay dramatically less than new buyers for comparable properties. A homeowner who bought in 1995 for $200,000 might have an assessed value of ~$350,000 today, while a neighbor who bought last year for $900,000 is assessed at $900,000.
How to appeal in California: If you believe your assessed value is higher than the market value of your property on the lien date (January 1), you can file an Assessment Appeal Application with your county’s Assessment Appeals Board. The filing deadline is typically September 15 for regular roll values, or within 60 days of a notice of supplemental assessment.
Texas: High Rates, Multiple Exemptions
Texas has no state income tax, but funds its government primarily through property taxes — making Texas property tax rates among the highest in the nation. Effective rates typically run 1.5–2.5% of market value depending on the county and school district.
Texas appraisal districts (each county has its own) assess property at 100% of market value as of January 1. The total tax bill is the sum of rates from all taxing entities — school district, county, city, community college, hospital district, and others.
Key Texas protections: The homestead exemption removes $100,000 from school district assessed value. A 10% annual cap prevents assessed value from increasing more than 10% per year for homestead properties. Seniors 65+ get an additional $10,000 school district exemption and a school tax freeze.
How to appeal in Texas: File a Notice of Protest with your county appraisal district by May 15 (or 30 days after your notice of appraised value, whichever is later). You can request an informal review first, then a formal Appraisal Review Board (ARB) hearing. Hearings are conducted by the ARB, not the appraisal district — they are independent. Decisions can be further appealed to district court.
Florida: Save Our Homes and Portability
Florida assesses property at market value but limits increases for homestead property through the Save Our Homes (SOH) cap — annual increases in assessed value are capped at the lesser of 3% or the CPI inflation rate. For long-term homeowners in appreciating markets, this cap creates a significant “SOH benefit” — the gap between assessed value and current market value.
When a homestead property sells, the SOH benefit resets — the buyer is assessed at full market value. However, Florida allows Portability: homeowners can transfer up to $500,000 of their accumulated SOH benefit to a new Florida homestead when they move.
How to appeal in Florida: File a petition with your county’s Value Adjustment Board (VAB) by September 18 (deadline varies by county). An evidence exchange period follows, then a special magistrate hearing. Florida is unique in that you can hire an attorney or CPA to represent you before the VAB without appearing yourself.
New York: Complex and Hyper-Local
New York has among the most complex property tax systems in the country. Assessment ratios vary wildly by locality — some assess at 100% of market value, others at much lower percentages. New York City uses four tax classes with different rates. School districts add significant costs in most parts of the state.
The STAR (School Tax Relief) program provides exemptions for primary residences, with Enhanced STAR for seniors. Income limits apply to Enhanced STAR.
How to appeal in New York: File a complaint with your local Board of Assessment Review (BAR) by Grievance Day — typically the fourth Tuesday in May for most municipalities, though this varies. If the BAR doesn’t provide sufficient relief, you can proceed to Small Claims Assessment Review (SCAR) for residential property or Supreme Court for commercial.
Illinois: High Rates, Especially Cook County
Illinois has some of the highest effective property tax rates in the country, particularly in the Chicago suburbs. Cook County (Chicago) uses a unique classification system with different assessment levels for different property types. Residential property is assessed at 10% of market value; commercial at 25%. The county assessor applies an equalization factor (multiplier) to reach the equalized assessed value.
The layered exemption system — General Homestead, Senior Citizens Homestead, Senior Freeze, Returning Veterans — can significantly reduce the taxable EAV for qualifying homeowners.
How to appeal in Illinois: In Cook County, file a complaint with the Cook County Assessor’s Office during the open appeal period for your township (each township has a different window). If unsatisfied, appeal to the Cook County Board of Review, then the Illinois Property Tax Appeal Board (PTAB), and finally circuit court. In other Illinois counties, the process runs through the county board of review.
Finding Your State’s Appeal Process
Every state has its own appeal structure, deadlines, and rules. The fastest way to find your specific process:
- Search “[your state] property tax appeal” on your state’s Department of Revenue or Department of Taxation website
- Look up your county assessor’s website — appeal instructions are usually posted there
- Your assessment notice itself should include appeal instructions and the deadline
See our complete step-by-step property tax appeal guide for the full process, and our guide on common assessment errors to know what to look for in your records.
State-by-State Deep Dive Guides
We’ve published complete, state-specific guides for the highest-volume states. Each one covers local deadlines, the exact appeal process, key contacts, and what evidence works best in that state.
- California: Prop 13, Prop 8 appeals, and how the Assessment Appeals Board works
- Texas: CAD protests, informal meetings, ARB hearings, and the best contingency firms
- Florida: TRIM notices, VAB petitions, the Homestead Exemption, and portability
- New York: Grievance Day, SCAR, NYC Tax Commission, and Nassau County’s unique process
- Illinois: Board of Review, PTAB, Cook County specifics, and the equity argument
💼 Ready to Appeal Your Property Tax Assessment?
The process varies by state — but the fundamentals are the same everywhere. Find the errors, document your case, file before the deadline. Our complete guide walks you through every step.
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