Assessed Value is the dollar value assigned to a property by a local government assessor, used specifically to calculate how much the owner owes in property taxes.
Homeowners most commonly encounter assessed value when they receive their annual property tax bill or a notice of assessment from their county or municipality. The assessed value is determined by a local assessor’s office, which may evaluate factors such as the property’s size, location, age, condition, and recent sales of comparable homes nearby. In many jurisdictions, assessed value is set as a percentage of the property’s estimated market value, though this percentage varies widely by location. Because assessed value directly drives your property tax bill, even a modest increase can meaningfully raise your annual costs. Most jurisdictions allow homeowners to formally appeal or contest their assessed value if they believe it is inaccurate, typically within a set window after the notice is issued.
Watch for: Assessed value and market value are not the same thing. Your home’s assessed value may be significantly lower, or occasionally higher, than what it would actually sell for. If your assessed value rises sharply after a renovation or a neighborhood sale, your property taxes may increase accordingly. Always review your assessment notice carefully each year, and consult a qualified tax professional or your local assessor’s office for guidance specific to your situation.
See also: Property Tax, Market Value, Tax Assessment Appeal