Property Tax Assessment vs. Market Value

Reducing Property Taxes Property Tax Assessment vs. Market Value

Property Tax Assessment vs. Market Value—What Is the Difference?

Are you trying to understand property taxes and how the government calculates your tax bill? Going into details about property tax assessment vs. market value is one of the crucial steps to reaching that goal. DoNotPay knows everything about this topic and can tell you how to lower your property taxes!

Property Tax Assessment vs. Market Value—What You Should Know

The terms market value and assessed value (property tax assessment) might seem similar, but the two differ. Market value is the estimated amount buyers would pay for a property. This property value is useful for property sales only. The person who comes up with the market value of a house or apartment is the appraiser.

The assessed value of the property is decided by a property tax assessor. This figure is used to determine how much a homeowner will pay for their property taxes. This is how the assessor calculates property taxes:


  1. Deduct property tax exemptions from the assessed value
  2. Multiply the result by an assessment rate (assessment ratio)

The assessment rate is a percentage set by each tax jurisdiction—normally 80–90%.

In some U.S. counties, the assessed value is a part of the market value. This usually leads to the former one being lower than the latter. This is good for property owners because the lower property tax assessment value means lower tax bills.

Factors That Determine Market and Assessed Value of a Property

Both the property tax assessor and the appraiser look at the same factors when establishing how much a property is worth. This includes:

  • Age
  • Property size
  • Lot size
  • Energy efficiency
  • Condition (exterior and interior)
  • Number of rooms
  • Public utility options
  • Location
  • Amenities
  • Heating and cooling systems

What Can You Do if You Are Not Satisfied With Your Property Assessment?

If you are a homeowner who believes their property tax assessment is too high, you have the right to file a property tax appeal! This is one of the popular property-tax reducing techniques. You should take this step in case you notice a significant difference between the current and previous assessments. It is not rare for property tax assessors to make a mistake and assess your value more than once or include some of the property you used to own.

Use DoNotPay To Help You With Property Tax Appeals

DoNotPay is at your service when it comes to appealing property tax assessments. If you sign up for our app, you can find the Property Tax product and use it to learn more about property tax appeals. We offer tips for property tax assessor negotiations. Your virtual assistant also knows what documents can serve as great evidence if it comes to a property tax appeal hearing.

Can You Lower Your Property Taxes in Other Ways?

You can try some of the other available options for lowering your property taxes. Some of the popular choices include:

  • Checking the tax bill for discrepancies—You should let the local property tax authorities know if you notice any mistakes
  • Being present when the property tax assessor is in your house—It is useful to shadow the assessor while they are making an evaluation so you can notice any potential mistakes right away
  • Not renovating the property—You should avoid adding any improvements to your home before the property tax assessment to ensure the value doesn’t increase
  • Applying for property tax exemptions—Looking for these tax relief options can cut your costs significantly

DoNotPay is a great option for finding out if you are eligible for any of the property tax exemptions available in your state.

See if You Meet the Requirements for a Property Tax Exemption With DoNotPay

Whatever part of the country you live in, you will be able to find certain property tax exemptions created to help people who could use some tax relief. The property tax exemption programs usually apply to veterans, senior citizens, and disabled people. DoNotPay can assist you with finding out whether you can apply for any of the exemptions available in your state in under five minutes. You only need to follow these steps:

  1. Sign up for DoNotPay in your web browser
  2. Find and open the Property Tax product
  3. Tell us more about yourself and the property you own

We will also help you apply for the exemption if you meet the criteria!

Some of the States With Low Property Taxes

If you are interested in finding out what states have low property taxes and want to see median assessed home values, you can check out the table below:

State Property Tax Rate State Median Home Value
Wyoming 0.65% $256,427
Arizona 0.63% $252,500
Delaware 0.62% $270,911
West Virginia 0.61% $107,762
Tennessee 0.61% $192,275
Nevada 0.58% $276,800
Utah 0.56% $373,049
Colorado 0.52% $418,363
Alabama 0.48% $149,996
Hawaii 0.36% $648,194

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