Property Tax CAGR Calculator: Annualized Property Tax Growth
Work out the annualized growth rate of your property tax bill between two years — the figure that exposes how much faster property tax grows than general inflation in many US jurisdictions.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Annual property tax growth | Total tax growth |
|---|---|---|
| $4k to $5.5k over 5yr | 6.58% | 37.50% |
| $2k to $2.5k over 10yr (capped) | 2.26% | 25.00% |
| $8k to $14k over 6yr (boom market) | 9.78% | 75.00% |
| $3k to $3.2k over 3yr | 2.17% | 6.67% |
How This Calculator Works
Enter the starting and ending annual property tax bills and the years between them. The calculator finds the compound annual growth rate that connects the two figures. Growth comes from two sources combined: assessment increases (market or assessed value) and rate increases (mill rate).
The Formula
Compound Annual Growth Rate
Start is the beginning value, End is the ending value, n is the number of years
Worked Example
A property tax bill rising from $4,000 to $5,500 over 5 years is a 6.6% annual growth rate, total 37.5%. That's roughly double general inflation. Many homeowners are surprised by this trend — property tax often grows faster than wages, becoming a larger share of housing cost over time.
Key Insight
Property tax growth varies dramatically by jurisdiction and policy. States with assessment caps (California Prop 13, Texas homestead, Florida Save Our Homes) limit annual growth typically to 2% to 3% for primary residences. States without caps or with frequent reassessments can see double-digit annual growth during market rallies. The protection is biggest for long-term owners; new buyers typically reset to market value at purchase.
Frequently Asked Questions
How is property tax CAGR calculated?
(Ending tax / starting tax) ^ (1/years) − 1. From $4,000 to $5,500 over 5 years is about 6.6% per year.
How fast does property tax typically grow?
Without assessment caps: often 4% to 8% annually in normal markets, faster during real-estate booms. With assessment caps (California Prop 13, Texas homestead): typically 2% to 3% per year on primary residences. New construction and recent purchases face full reassessment.
Why is my property tax growing so fast?
Two drivers: assessment increases (the assessor revalued the property higher) and rate increases (the taxing district raised the mill rate). Often both happen together during property booms. Some growth is also from special assessments (bonds, fire districts) layered onto base tax.
Can I appeal an assessment?
Yes — most jurisdictions allow annual appeals during a defined window. Success rates vary; documented evidence (comparable sales lower than your assessment, property defects, errors in characteristics) gets results most often. Many homeowners successfully reduce assessment by 5% to 15%.
What about exemptions?
Many jurisdictions offer homestead, senior, veteran, and disability exemptions that reduce taxable assessed value or impose caps on growth. These can substantially reduce the tax bill for qualifying owners — always check eligibility annually.
Related Calculators
Methodology & Review
The growth rate is the compound annual rate between property tax bills at the start and end of the period. Property tax grows from two sources: assessment increases (market value or assessed value) and rate increases (mill rate or millage). The CAGR captures both.
Written by Ugo Candido · Last updated May 17, 2026.