Definition
The value assigned to a property by a taxing authority for the purpose of calculating property tax, often a fraction of market value.
Example
A market value of $400,000 with a 40% assessment ratio produces an assessed value of $160,000.
Related terms
- Adjusted Basis
- Cost Segregation
- Depreciation
- Depreciation Recapture
- Exchange Accommodation Titleholder
- Homestead Exemption
Frequently asked questions
What does Assessed Value mean in real estate?
The value assigned to a property by a taxing authority for the purpose of calculating property tax, often a fraction of market value.
How is Assessed Value used in practice?
A market value of $400,000 with a 40% assessment ratio produces an assessed value of $160,000.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.