Market value vs assessed value

Market value is what a buyer would pay today. Assessed value is the number the appraisal district puts on your property as of January 1. Taxable value is assessed value minus exemptions and caps. Your appeal targets the assessor's market value; reductions then flow through caps and exemptions to a lower tax bill.

The three numbers

Number	Who sets it	What it does
Market value	Appraisal district mass model	The number you appeal
Assessed value	Market value × cap (e.g. TX 10%)	Base before exemptions
Taxable value	Assessed − homestead and other exemptions	What your rate is applied to

Why the gap matters

Mass appraisal models look at sales in a neighborhood and apply a formula to every parcel. They cannot see your foundation crack, dated kitchen, or busy-road frontage. The result: market value drifts above what your home would actually sell for. Caps soften the bill for long-term owners but do nothing for recent buyers, which is why first-time appeals from newer owners have the highest success rate.

Which value do you appeal?

Always market value. Reducing market value flows down through the cap and exemptions automatically. Appealing assessed or taxable value directly is procedurally wrong in most counties and gets dismissed.

Common questions

Is assessed value always lower than market value?

Not always. In states with assessment caps (Texas 10%, Florida 3% under Save Our Homes), long-held homes have assessed values well below market. New buyers and recently sold homes often see assessed value spike close to or above true market value, which is the most common cause of a winnable appeal.

Can I appeal if my market value matches the assessment?

Yes, on equity grounds. If similar homes in your neighborhood are assessed lower per square foot, an unequal-appraisal claim can win even when the assessor's market value is defensible.

What evidence proves market value?

Three to five arms-length sales within the past 12 months, within 0.5 miles, similar in size, age, and condition. A median price per square foot applied to your square footage is the single most cited figure on appeals.

See what your market value should be

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