What Is Assessed Value?
Assessed value is a local government's estimate of a property's worth, used to calculate property taxes — often lower than market value and updated on its own schedule, not tied to a sale.
Assessed Value in plain English
Assessed value is the value a local assessor assigns to a property for property taxes. Your tax bill is the assessed value multiplied by the local tax rates.
It is set on the assessor's schedule, may be a percentage of market value, and can be far from what the home would sell for - especially where reassessments are infrequent.
Common mistakes
- Using assessed value to judge what a home is worth.
- Ignoring an assessment notice until the appeal deadline passes.
- Assuming a buyer's taxes will match the seller's.
Appraised Value vs. Market Value vs. Assessed Value
A licensed appraiser's formal opinion of value, ordered by a lender to confirm a loan amount is justified.
What a property would likely sell for right now, given current buyer demand — an estimate, not a formal figure.
A local government's valuation used to calculate property taxes — often lower than market value and updated on its own schedule.
Compare and common questions
Assessed Value: frequently asked questions
Why is my assessed value lower than market value?
Because many places assess at a fraction of market value or reassess infrequently. What matters for your bill is how your assessment compares with similar properties.
Can I appeal my assessed value?
Yes. Local governments have an appeal process with deadlines; evidence such as comparable sales or an appraisal supports an appeal.
Does assessed value change when a home sells?
In some places a sale or major improvement can trigger a reassessment; in others values change only in scheduled reassessments. Check with the local assessor.
Related Terms
More Buying Terms
Recommended next step
Estimate the tax bill from the assessed value and local rates.
Property tax calculator →Sources and review
No regulator defines this term; the page follows common industry practice.
Where this applies: United States. Assessment rules, ratios and appeal deadlines are set by states and localities.
Last reviewed: · Updated:
Examples use illustrative figures; rules of thumb are labelled as such. Rates, limits and program rules change - confirm current figures with your lender or a qualified professional.
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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