Can you tell the approximate value of a home by knowing the Property Tax?

Question

For example, if the prop. tax for one year is $17,000.00(U.S.), what does that tell you about the value of the home?

Well, the only other thing I know is the "assessed value," which is just UNDER $945,000.00

Answer 1

If you are curious about the value of the home, you might try www.zillow.com. In a lot of cases, zillow can be pretty close but there are cases where it can miss the value substantially. I would consider zillow but expect the value to be no less than the $945,000 assessed value. Good luck.

Jim Kirby, CPA

Answer 2

In most states it would not be possible to ascertain the value of a property based upon the taxes paid. Assessed valuations seldom bear any semblance to reality. In CA, two identical homes next door to each other can have widely differing tax bills because of the way that property taxes are handled under Prop 13. It's not unusual at all for one to have a tax bill of $1,000 per year and the one next door to have one of $7,500 even though they would sell for the same price in an arms length transaction.

A few states require that assessed values reflect FMV, TX is one for example, but again the reality is that assessed values are normally based upon a statistical analysis that does not account for issues that a professional appraiser would consider when valuing a property. I sold one in TX last year for more than 20% more than the assessed value in a depressed market.

Answer 3

It depends where you are and how often the assessed values are updated. In California where I am, the value is set when you acquire the property and increases are limited to 2% per year. I have owned my home for 30 years so the tax value is meaningless. If a state updates its valuations reguarily, the property tax would more accurately mirror the actual value.

Answer 4

It says the house has a very high value but you need the property tax mill rate and the assessed value of the house in order to determine the base value from which the tax is determined.

Answer 5

If you also know the tax rate, and that is public information, you can calculate the assessed value. That does not necessarily tell you what someone paid or what the home could be sold for.

Answer 6

yes, it tells me that the house has high value!