What is an assessment ratio?
An assessment ratio is a figure used to help define the amount of property taxes a homeowner pays in California. It is determined by dividing the assessed value of a property by its full market value. In other words, it is the percentage of the market value that is being used to calculate property taxes. For example, a property with a market value of $200,000 may have an assessed value of $120,000, giving it an assessment ratio of 60 percent. This means that the homeowner will only pay property taxes on 60 percent of the property’s market value. Assessment ratios vary by county and can change from year to year based on changes in market values. Assessment ratios are used to help ensure that property taxes are fair and equitable, as they are based on the market values at the time of assessment.
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