Two different taxes are tangled together in this question, so separate them first. If you mean property taxes, the answer is governed almost entirely by your state. Some states cap how fast a home's assessed value can rise while you own it: California limits annual increases to 2 percent under Proposition 13, and Florida uses a similar cap for homesteaded property. Most states, though, reassess closer to market value on a regular schedule, and some apply an assessment factor to the value, so a sale or a major rebuild can reset the taxable value meaningfully. A full teardown and rebuild in particular can be treated as new construction rather than a remodel and reassessed accordingly, which is worth knowing before a big project. If you mean what you owe when you sell, that is capital gains, and a primary residence gets a valuable break: a portion of your gain can be excluded if you have owned and lived in the home long enough to qualify. The exact thresholds and rules change and depend on your filing situation. Both answers hinge on your state and your personal circumstances, so run your specific numbers past a tax professional. The short version: expect some increase on reassessment, and rarely an immediate jump to the full sale price.