Here’s the 1 simple secret US homeowners can use to lower their property taxes — are you throwing away thousands for no good reason?

For example, your home’s market value might jump 15% in a single year, but an assessment cap could limit the increase in taxable value to a much smaller amount. In California, Proposition 13 caps annual increases in assessed value at 2%. Florida’s Save Our Homes Act sets a 3% cap — or less if inflation is lower.

Over time, the gap between what your home’s market value and its taxable value can grow significantly. This effectively reduces your long-term tax burden and creates a strong financial incentive to stay in your home.

Who benefits most?

Although property tax incentives differ by state, they tend to benefit long-term homeowners — particularly older Americans who have remained in their homes for decades and seen significant appreciation in property value.

“If you purchased your home in the 1980s in San Francisco, the value of that home has ripped and is incredibly valuable,” Colton Pace, CEO and founder of Ownwell, told Realtor.com. “But you're taxed as if your home just went up 3% every year. So you may have this gap — sometimes a million dollars for some of these homes in certain areas — that, if you sold the property, the new owner would have to pay.”

This system can shift more of the property tax burden onto newer homeowners, who are often younger and earlier in their careers. For example, someone buying a home in San Francisco today could face a much higher property tax bill than a retired neighbor in an identical home.

If you believe your property tax bill is too high, consider filing an appeal to challenge the assessed value. Also, check for any exemptions you may qualify for — even if you haven’t lived in your home for very enough. But it’s not just about how long you’ve owned your property. Many states offer exemptions based on a variety of factors such as age, disability, income level, or veteran status.