Tax assessment

Definition

A tax assessment is the value a local taxing authority assigns to a property when it calculates property tax. It is not an appraised value for a mortgage and not the tax bill itself.

In plain English

Property tax is the amount due. The tax assessment is the value used to compute that amount. Those two figures are easy to mix. A mortgage appraisal is a different opinion of value for the loan. This page is the tax-base figure.

Technical definition

CFPB describes property taxes as local charges based on the value of the property. The assessed value behind that charge is this concept.

Why it matters

Escrow analyses follow tax bills that start from an assessment. Confusing that assessment with an appraisal misreads LTV.

Sources reviewed

Important note

A tax assessment is not a mortgage appraisal.