Assessed Value Calculator Formula
Understand the math behind the assessed value calculator. Each variable explained with a worked example.
Formulas Used
Assessed Value
assessed_value = assessed_valEstimated Annual Tax
annual_tax = assessed_val / 1000 * tax_rate_per_thousandMonthly Tax Equivalent
monthly_tax = (assessed_val / 1000 * tax_rate_per_thousand) / 12Variables
| Variable | Description | Default |
|---|---|---|
market_value | Fair Market Value(USD) | 400000 |
assessment_ratio | Assessment Ratio(%) | 80 |
tax_rate_per_thousand | Tax Rate per $1,000(USD) | 12 |
assessed_val | Derived value= market_value * assessment_ratio / 100 | calculated |
How It Works
How Property Assessment Works
Local governments assess properties at a fraction of market value using an assessment ratio, then apply a tax rate to that assessed figure.
Formula
Assessed Value = Market Value x Assessment Ratio
Annual Tax = (Assessed Value / 1,000) x Tax Rate per $1,000
Notes
Worked Example
A home has a fair market value of $400,000 with an 80% assessment ratio and a tax rate of $12 per $1,000.
- 01Assessed value: $400,000 x 80% = $320,000
- 02Annual tax: ($320,000 / 1,000) x $12 = $3,840
- 03Monthly tax equivalent: $3,840 / 12 = $320
Frequently Asked Questions
What is an assessment ratio?
The assessment ratio is the percentage of fair market value that your local government uses to calculate the taxable assessed value. It varies by state and municipality, typically between 50% and 100%.
Can I appeal my assessed value?
Yes. Most jurisdictions allow property owners to appeal their assessed value if they believe it is too high. You typically need comparable sales data or an independent appraisal to support your case.
How often is property assessed?
It depends on your jurisdiction. Some reassess annually, others every 2-5 years, and some only when the property is sold or significantly improved.
Ready to run the numbers?
Open Assessed Value Calculator