Definition
Official government determination of property value for property tax calculation purposes.
Where you’ll meet it
I own a home. Now what?
See it in Buying my first home · Step 7About this term
Property taxes assessed values often differ from market values. Assessments use various methods (sales comps, income approach, cost approach). Assessment challenges are available if values are clearly overestimated. Understanding assessment impacts annual tax bills.
Pro Tip
Review property tax assessment; challenge if overestimated compared to market value.
Example
Property purchased for $400k assessed at $380k for taxes; assessed value determines annual property tax bill