how assessed value is calculated
in most states and municipalities assessed value is calculated as a percentage of the property s fair market value the percentage rate used can vary considerably from one place to another for example at 10 mississippi uses one of the lowest percentage rates in the nation for owner occupied single family homes to establish assessed value 1 by contrast massachusetts uses a very high percentage rate of 100 2once the assessed value is known property taxes can then be determined assessed value and property taxesthe assessed value of your home is only one factor used to calculate your property taxes many tax authorities use an equation such as the following which typically includes a millage rate or tax rate fair market value assessment rate millage rate effective property taxthe millage rate is the tax rate applied to the assessed value of the property millage rates are typically expressed per 1 000 with one mill representing 1 in tax for every 1 000 of assessed value so for calculation purposes if the mill rate in your jurisdiction is 20 divide that by 1000 to get 02 then apply that figure to the calculation say that a house in your area has a fair market value of 300 000 the area s assessment rate is 50 and the mill rate is 20 using the formula shown above the property tax would be 3 000 300 000 0 50 0 02 3 000personal property taxesin addition to a real estate tax many states impose a tax on certain personal property similarly this tax usually is based on the personal property s assessed value types of personal property that are taxed can include mobile homes cars motorcycles and boats rates can vary widely as well depending on where you live 