Incorrect. Market values for any property regardless of exemptions can increase any amount.  While the market value can be a higher value than the assessed value (which is used to calculate your tax bill) for a homestead exempt property, the market value for your property is important in the long run.  Residential homes with a homestead exemption are capped to a 10% annual assessed value increase.  Eventually your assessed value will “catch-up” to the property’s market value after a few years of maximum capped assessed value increases.  Non-homestead residential property appraisals can increase any amount in a given year. A property owner can only have one homestead exemption. For more information about homestead exemptions, click here.