Select assessed value, implied market value, or assessment ratio, then enter the other two property assessment figures.
Assessment Ratio Formula
The assessment ratio compares a property's assessed value to its market value for the same valuation date. The calculator can solve for any one missing value when you enter the other two.
- Assessment Ratio is the assessed value as a percentage of market value.
- Assessed Value is the value used for property assessment or tax assessment purposes.
- Market Value is the estimated price the property would sell for in the open market.
Select Assessment ratio to divide assessed value by market value and convert the result to a percentage. Select Assessed value to multiply market value by the ratio expressed as a decimal. Select Implied market value to divide assessed value by the ratio expressed as a decimal.
Common Assessment Ratio Conversions
Use this table to see how different assessment ratios affect assessed value when the market value is $300,000.
| Assessment Ratio | Market Value | Assessed Value |
|---|---|---|
| 10% | $300,000 | $30,000 |
| 25% | $300,000 | $75,000 |
| 50% | $300,000 | $150,000 |
| 80% | $300,000 | $240,000 |
| 100% | $300,000 | $300,000 |
Assessment Ratio Result Guide
| Result | Meaning |
|---|---|
| Less than 100% | The assessed value is lower than the market value. |
| 100% | The assessed value equals the market value. |
| More than 100% | The assessed value is higher than the market value. This may indicate a data issue, valuation difference, or reassessment concern. |
Example Assessment Ratio Calculations
Example 1: Calculate assessment ratio
You have an assessed value of $180,000 and a market value of $240,000.
The assessment ratio is 75%.
Example 2: Calculate assessed value
You have a market value of $425,000 and an assessment ratio of 40%.
The assessed value is $170,000.
Assessment Ratio Calculator FAQ
What does an assessment ratio tell you?
An assessment ratio tells you what percentage of a property's market value is represented by its assessed value. For example, if a property has a market value of $500,000 and an assessed value of $250,000, the assessment ratio is 50%.
Is assessed value the same as market value?
Not always. Market value is the estimated selling price of the property. Assessed value is the value used by an assessor, often for tax purposes. Some areas assess property at full market value, while others use only a percentage of market value.
Why can the assessment ratio be different by location?
Assessment rules are usually set by local or state law. One area may assess property at 100% of market value, while another may use 10%, 25%, 40%, or another fixed ratio. Always check the assessment rules for the property location when using the result for tax-related decisions.
