What Is Assessed Value?

Assessed value is the dollar amount your local tax assessor assigns to your property to calculate annual property taxes. It is determined by the county or municipality and may be significantly different from what your home would sell for on the open market.

Many jurisdictions assess property at a fraction of market value. For example, if your home’s market value is $400,000 and your county assesses at 80%, your assessed value is $320,000. With a local tax rate of 1.25%, your annual property tax bill would be $4,000. Assessed values are typically updated every 1–3 years and can be appealed if you believe the figure is inaccurate.

Key Facts

• Purpose: Used solely to calculate your annual property tax bill
• Assessment ratio: Many counties assess at 80%–100% of estimated market value
• Update frequency: Reassessed every 1–3 years depending on jurisdiction
• Appeals: You can challenge your assessed value by filing a protest with your county assessor’s office
• Not the same as appraised value: An appraisal reflects current market value; assessed value is for tax purposes

Frequently Asked Questions

Why is my assessed value different from my home’s market value?

Tax assessors use mass-appraisal methods that may not account for recent upgrades, unique features, or current market conditions. Many jurisdictions also apply an assessment ratio below 100%, so your assessed value is intentionally lower than market value.

Can I lower my property taxes by appealing my assessed value?

Yes. If comparable sales or a recent appraisal shows your home is worth less than the assessed amount, you can file a formal appeal with your county assessor. Successful appeals can reduce your annual tax bill by hundreds of dollars.

Does assessed value affect my mortgage?

Not directly. Lenders rely on the appraised value — not the assessed value — to determine your LTV and loan amount. However, your property taxes (based on assessed value) factor into your monthly escrow payment, affecting your total housing cost.