Assessed Value vs Market Value: What's the Difference?

Assessed value is what your county tax assessor says your home is worth for property tax purposes — usually 60% to 100% of market value, depending on your state's assessment ratio. Market value is what your home would actually sell for today. The two are almost always different. In California, assessed value is locked at the purchase price (with 2% annual increases) under Prop 13. In Texas, assessed value tracks closer to market value but is capped at 10% increases per year for homesteads.