How to Calculate Your Property's Assessed Value

Key Points

Assessed value is crucial for calculating property taxes, and it's often based on fair market comparisons.
Local rules differ: Some calculate taxes on a percentage of property value or offer exemptions.
Knowing assessed value aids in budgeting for property taxes and making informed real estate decisions.

Property taxes are a major expense of being a homeowner, and the way that local governments calculate how to charge an appropriate property tax can be both frustrating and confusing. One key to understanding property taxes is calculating your property's assessed value, which forms the basis for the tax calculation. Below, we'll look at some of the idiosyncrasies you'll run into with assessed value.

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Miniature model house on top of tax forms with calculator and pencil. — Image source: Getty Images.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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