Assessed Value

Written By
Paul Tracy
Updated November 4, 2020

What is Assessed Value?

Assessed value refers to the value of an asset -- usually real estate -- as determined by an assessor for tax purposes. The assessed value is often computed by incorporating the purchases and sales of similar properties in nearby areas.

How Does Assessed Value Work?

Let's assume you own a house. The property tax assessor in your municipality will likely assign a value to the house and calculate your property taxes based on that assessed value.

If the property tax rate is 4% and your home's assessed value is $200,000, then your yearly property tax liability would be $8,000 (.04 x $200,000).

Why Does Assessed Value Matter?

Although assessed value is a term used in conversations about property taxes, it is also an important factor in municipal bond issues. Because many municipalities receive a large portion of their local revenue from property taxes, the ratio of assessed value to net debt is an indicator of the quality of the bond issue.

It is also important to note that assessed value is usually not the same as a property's fair market value.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Assessed Value.
Be the first to ask a question

If you have a question about Assessed Value, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Assessed Value, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Assessed Value

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms