Assessed Value
Direct definition
The value assigned to a property by a local government for property-tax purposes.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Assessed value is set by the county or municipality and is often different from market value. It's the number your property tax bill is calculated from.
Why it matters
It drives your annual property taxes and can be appealed if it seems too high.
Where you may see it
- Tax assessment notice
- Property tax bill
- County records
A real-world example
Your home might have a market value of $500,000 but an assessed value of $420,000 that produces a $6,300 tax bill at a 1.5% rate.
Educational and illustrative only
A common misunderstanding
Assessed value is not the same as market value or what your home would sell for — it's a separate figure used only for taxation.
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This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026