What Is Assessed Value?
Assessed value is the value a local government assigns to a property for property tax purposes. Depending on the jurisdiction, it may equal the market value or be a set percentage of it (the assessment ratio). Property tax is then calculated by applying the local tax rate to the assessed value, minus any exemptions.
Assessed vs. Market vs. Appraised Value
Market value is what the property would likely sell for; an appraisal is a professional estimate usually made for a lender; assessed value is the tax figure.
Example
A 300,000 home with a 40% assessment ratio has an assessed value of 120,000.
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🔗 Related Terms
More Home Buying Terms
- Adjustable-Rate Mortgage (ARM)
- Appraisal Gap
- Bridge Loan
- Cash-Out Refinance
- Closing Costs
- Closing Disclosure
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.