&lt;Prop 13 basically keeps the property taxes constant (or 1% increase) as the value of your house increases (doubles or triples)&gt;<p>No, it sets your <i>base tax value at purchase</i> to 1% of the purchase&#x2F;FMV price, and its increases from there are <i>annual</i> and limited to 2% of the previous tax.<p>e.g. assuming a purchase price in 2015 of $1 million:<p>Year   Tax<p>1: $102,000 max<p>2: $104,040 max<p>etc.  (initial * (1.02 ^ year#))<p>&lt;Your tax gets re-calculated only if you sell your house&gt;<p>Or any other change in majority ownership.  It can also be triggered by improvements.<p>Note that local governments heap many additional taxes in the form of &quot;parcel taxes&quot; that are fixed amounts -- a regressive tax effect (a $20M estate and a $300K condo pay the same amount).