Proposition 13 limits annual increases in your assessed value to a maximum of 2% per year as long as you own the property, regardless of how much market values increase. If you buy a home today and hold it for 20 years, your tax base grows very slowly even as market values double or triple. This is one of the most significant financial advantages of long-term homeownership in California. When you sell, the assessed value resets to the new purchase price for the next owner.
