What is the difference between assessed value and market value?

The assessed value of a property is an estimate of its worth as determined by the local government for taxation purposes. It is based on the appraised value of the property, along with any adjustments for exemptions or other factors. The assessed value is then used to calculate the property tax rate for the homeowner. Market value, on the other hand, is the value that a buyer of the property would be willing to pay on the open market. It is determined by the economic forces of supply and demand and may be affected by factors such as the current economic situation, the location of the property, and any local amenities. The difference between assessed value and market value is important for California property tax law, as it determines how much tax a homeowner will be required to pay. If the assessed value of the property is greater than its market value, the homeowner will be required to pay more in taxes than they would if the assessed value were lower. Similarly, if the assessed value is lower than the market value, the homeowner will pay lower taxes.

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What is the difference between assessed value and market value?

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