Solar Property Tax Exemptions by State: What You Need to Know
By Solar Cost Predictor Team · July 7, 2026 · 6 min read
Since solar panels can increase your home's resale value by 3–4% on average, some states apply that added value to your property tax assessment too, unless a specific exemption prevents it.
How a Property Tax Exemption Works
A solar property tax exemption excludes the added value from solar panels from your property tax assessment — you get the home-value benefit when you sell, without a higher annual tax bill while you own it.
Which States Offer It
Many states offer a full or partial property tax exemption for solar, including California, New York, New Jersey, Florida, and Texas, among others — rules on duration and scope vary, so confirm the current details for your specific state and county.
How to Claim It
Most states require filing a specific form with your county assessor after installation, rather than applying the exemption automatically — your installer may provide the form, or you can find it through your state's department of revenue or your county assessor's office.
Frequently Asked Questions
Do solar panels increase my property taxes?
Without a property tax exemption, the added home value from solar could increase your assessment in some states — but many states offer an exemption specifically to prevent that.
Is a solar property tax exemption automatic?
Usually not — most states require filing a specific form with your county assessor after installation rather than applying it automatically.
Does a leased solar system still qualify for a property tax exemption?
In many states yes, since the exemption is based on the added value to the property regardless of who owns the equipment — confirm your specific state's rule.