Definition
The value a local government assigns your property for calculating property taxes. It is set by the assessor's office, often lags the market, and in many places is a set fraction of market value.
Why it matters
Your property tax bill is assessed value times the local rate, so an inflated assessment is an inflated bill. Assessments can be appealed, and a successful appeal saves money every year afterward.
Example
A home worth about $400,000 on the market is assessed at $360,000. At a 1.2% rate the annual tax is $4,320. When the assessment jumps to $410,000 without justification, the owner appeals with comparable sales and wins a reduction.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.