Cap value applies to residential homesteads only and it goes into effect the second year after a residential homestead exemption has been granted for your residence. If the property is your residence homestead, the appraised value may not exceed the sum of:

• 10 percent of the appraised value of the property for the preceding tax year; plus
• the appraised value of the property for the preceding year; plus
• the market value of all new improvements to the property.

**For a more detailed summary and calculation example click here.**