Property taxes (state-specific)
General information, not legal or tax advice. Landlord-tenant and tax rules vary by state, county, and city and change often. Confirm against current statute or a licensed professional in the relevant jurisdiction before acting.
For investors
Res + Com
Proposition 13 (1978) caps the base property tax rate at 1% of assessed value and limits annual assessment increases to 2% — until a change of ownership or new construction triggers reassessment to current market value. That's why a long-held rental can carry a tax bill far below a recently purchased one next door.
The big recent shift for landlords is Proposition 19 (2021): it eliminated the parent-child exclusion for investment and rental property. When a child inherits a rental or vacation home, the county now reassesses it to current market value. The low Prop 13 base can only carry over for a principal residence the heir also moves into — and even then it's capped (about $1,044,586 of excess value for transfers between Feb 16, 2025 and Feb 15, 2027), with form BOE-19-P due within three years. Plan ownership transfers carefully; a reassessment can multiply the annual tax.
For investors
Res + Com
New York taxes by assessed value, and New York City uses a four-class system. Rental buildings of four or more units fall in Class 2, assessed at about 45% of market value with an interim FY2026 rate near 12.34% — a heavier effective treatment than the 1–3 family homes in Class 1. Smaller rentals and condos/co-ops have their own assessment nuances.
On exemptions, the key point for landlords: STAR and Enhanced STAR (School Tax Relief) only benefit owner-occupants, and the formula favors conventional homes over apartment buildings — so a non-owner-occupied rental generally gets no STAR relief. Your main lever is challenging an over-assessment, so calendar your grievance deadline (NYC Class 2 was March 2, 2026) and protest when the assessed value looks high.
For investors
Res + Com
Texas has no state income tax and leans heavily on property tax, but 2025–2026 delivered major relief — mostly aimed at homeowners. SB 4 raised the school-district homestead exemption (toward $140,000, enabled by Proposition 13 approved in November 2025), and SB 23 raised the additional senior/disabled exemption to $60,000. Those help owner-occupants, not rentals.
The provision landlords should know: a temporary 20% appraisal cap on non-homestead real property valued under $5 million — a pilot running through tax year 2026 (and potentially renewed) that limits how fast a rental's or small commercial property's appraised value can rise year to year. Several changes apply retroactively to 2025. Either way, protest your appraisal annually; Texas's deadline-driven process rewards owners who challenge.
For investors
Res + Com
Florida has no state income tax, and homestead (owner-occupied) property enjoys the Save Our Homes cap, which limits assessed-value growth to 3% per year or CPI, whichever is lower. Rentals don't qualify for homestead — but non-homestead property has its own cap of 10% on annual assessment increases (excluding school-district taxes).
The 2026 headline: on June 2, 2026 the legislature passed HJR 1F, the 'Save Our Homes from Excessive Property Taxes' amendment, for the November 2026 ballot. If 60% of voters approve, it raises the homestead exemption to $150,000 (2027) and $250,000 (2028) on non-school levies, and — directly relevant to landlords — lowers the non-homestead assessment cap from 10% to 5% starting January 1, 2027. Watch the November vote; it would be the largest property-tax change in state history.
Less guesswork, one system of record
Collabrio keeps the dated photos, ledgers, leases, and audit trail
that turn these questions into a five-minute lookup.
Start your free trial