Fair market value is the assessor's sale-price idea as of the valuation date. Assessed value is the printed tax figure millage later multiplies.
Fair market value on a property tax notice is the assessor's sale-price idea for the property as of the valuation date, not the assessed figure printed after a ratio or cap. That sale-price idea is an opinion of what a willing buyer and seller would trade for. The printed assessed number is the tax figure millage later multiplies.
What is fair market value versus assessed value?
The IAAO glossary treats market value as an opinion of the most probable transfer price as of a given date, under conditions of a fair sale. Fair market value is that sale-price idea. Assessed value is what remains after a legal ratio, a cap, or another statutory filter. The market value versus assessed value page keeps those two columns apart; this page names the FMV column.
Example: a $400,000 fair market figure at a 50 percent assessment ratio prints as $200,000 assessed. Ten mills on that $200,000 is $2,000. That walkthrough is an example, not a county's posted 2026 rate.
Look up if you are overpaying.
Does a property tax appeal target fair market value?
A property tax appeal is aimed at the printed assessed figure, which often started as an FMV opinion. If the sale-price idea was high, the assessed line is high with it. The property tax glossary keeps FMV next to assessed value. FairAppeal reviews your property and decides whether to file, and there are no upfront costs with Fair Appeal.
Frequently asked questions
- What is fair market value on a property tax notice?
- Fair market value on a property tax notice is the assessor's sale-price idea for the parcel as of the valuation date. IAAO treats market value as an opinion of transfer price under a fair sale. That idea is not automatically the assessed figure millage multiplies.
- Is fair market value the same as assessed value?
- Fair market value is not the same as assessed value. Fair market value is the sale-price idea. Assessed value is the tax figure after a ratio, a cap, or another statutory filter. Millage multiplies the assessed or taxable line, not a listing price.
- How does fair market value affect a property tax appeal?
- A property tax appeal challenges the printed assessed figure. That figure often began as a fair market value opinion. When the sale-price idea sits too high, the assessed line and the later bill sit high with it until a new roll is written.