Chapter 4.3


3/6

4.3 What is assessed value and market value?

In terms of real property in Pennsylvania, there are two important numbers: Assessed Value and Market Value. School district property taxes are based up on the assessed value (AV) of a property—the value assigned to the property by a county. A school district’s millage rate is multiplied by the AV of a property to determine the property tax obligation.

For example, if a school district’s millage rate is 20.00 and a property’s AV is $100,000, the school district property tax bill for that property would be $2,000.

( 20.00 / 1000 ) * $100,000 = $2,000

While property taxes are based on AV, property owners are also familiar with the market value (MV) of a property—the fair market value the amount that a willing buyer would pay for a property, considering all uses for and improvements to the property. It's important to recognize that AV and MV are not the same number, and the AV is generally a percentage of the MV. MV doesn't have a role in determining property taxes (except in limited circumstances related to assessment appeals--we'll cover this later!).

The graph below shows the total statewide assessed value compared to total statewide market value.

Click on the image link below illustrating the statewide total assessed value to market value ratio—the percentage of market value represented by assessed value between 2013-14 and 2018-19.

Click on the map below to view the individual assessed value to market value ratio for each school district. The percentage represents the amount of total school district market value represented by total school district assessed value.