A state-by-state comparison of appraisal and assessment practices reveals key differences affecting property taxes, reassessment frequency, and valuation methods. Appraisals estimate market value for sales and loans, while assessments determine taxable value. States like California cap assessed increases, while Texas and Florida reassess annually with exemptions. Understanding these variations helps buyers, investors, and agents make smarter tax and investment decisions. appraisal and assessment comparison Learn how to appeal assessments and use tools to estimate your property taxes effectively.
Appraisal vs. Assessment: Know the Difference First
Many people use the terms appraisal and assessment interchangeably—but in real estate, they mean very different things.
| Term | What It Is | Used For |
| Appraisal | A professional estimate of a property’s current market value | Loans, refinancing, selling/buying |
| Assessment | A valuation by the local government for tax purposes | Calculating annual property taxes |
Simple Analogy:
- Appraisal = What a buyer is willing to pay.
- Assessment = What the government thinks your home is worth for taxes.
Why State-by-State Practices Matter
In the U.S., property tax systems are administered at the local level, meaning every state—and sometimes every county—has its own set of rules about how and when properties are appraised and assessed.
These rules affect:
- How much tax you pay annually
- How frequently your property is reassessed
- How property value changes impact your finances
- Whether you can appeal or reduce your tax bill
Side-by-Side State Comparison
Here’s a breakdown of how five major states approach property appraisal and assessment:
California
- Assessment Value Basis: Original purchase price (Prop 13)
- Annual Increase Cap: 2%
- Reassessment Trigger: Only when sold or significantly improved
- Tax Rate: ~1.1% of assessed value
Example:
Bought a house in 2010 for $300,000? In 2025, its assessed value might be just ~$390,000, even if it’s worth $700,000 on the market.
Texas
- Assessment Value Basis: Current market value
- Cap: 10% annual increase (homesteads only)
- Reassessment: Annually by local appraisal districts
- Tax Rate: Higher (avg 1.8%-2.3%), but no state income tax
Tip: Texas’s property taxes are among the highest in the U.S. because the state has no income tax.
Florida
- Assessment Value: Market value with caps for homesteads (Save Our Homes)
- Annual Increase Cap: 3%
- Portability: Can transfer cap savings when moving within Florida
- Homestead Exemption: $50,000+ in tax value
Investor Insight: If you flip homes or rent them, you won’t benefit from the homestead exemptions.
New York
- Assessment System: Varies by municipality (full vs. fractional values)
- Reassessment Frequency: Often irregular
- Special Classes: Different tax treatment for condos, co-ops, rentals
- Appeals Process: Annual grievance process (May deadline)
Important for Buyers: Many NYC properties are under-assessed due to long-term ownership, causing massive tax shifts upon sale.
Georgia
- Assessment Method: 40% of market value
- Reassessment: Annually
- Cap: No statewide limit, but some counties offer local caps
- Appeals: 45 days from notice
Did You Know? You can appeal your assessment every year if you believe it’s unfair or incorrect.
Quick-View Table: Assessment Rules at a Glance
| State | Assessed % of Market Value | Annual Cap | Reassessment Frequency | Tax Per $100K |
| California | 100% (frozen at purchase) | 2% | Upon sale/improvement | ~$1,100 |
| Texas | 100% | 10% (homestead) | Annual | ~$1,800–$2,300 |
| Florida | 100% | 3% (homestead) | Annual | ~$850–$1,500 |
| New York | Fractional (varies) | None | Varies | ~$1,600+ |
| Georgia | 40% | Varies | Annual | ~$900–$1,200 |
Tools You Can Use Today
Make smarter decisions using these interactive resources:
- SmartAsset Property Tax Calculator
- Zillow Home Value Estimator
- Find Your Local Assessor
Real-World Tips for Each Audience
First-Time Buyers
- Ask: “When was this property last assessed?”
- Don’t assume tax estimates on listings are up-to-date
- Look into homestead exemptions and eligibility
Investors
- Compare tax burdens across states to assess cash flow potential
- Consider buy-and-hold vs. fix-and-flip strategies differently depending on the assessment rules
- Look for under-assessed markets for long-term value
Real Estate Agents
- Be the expert on local assessment practices
- Educate buyers and sellers on assessment vs. appraisal
- Help clients prepare appeals when needed
How to Appeal a High Property Assessment
You have a right to challenge your property’s assessed value. Here’s how:
- Review your assessment notice as soon as it arrives
- Research comparable property values in your neighborhood
- File an appeal—usually online or by mail
- Prepare evidence (photos, appraisals, comps)
- Attend a hearing if required
Deadlines and formats vary, so check with your local assessor’s website.
Further Reading & Resources
- Appraisal vs. Assessment: What’s the Difference?
- How Property Taxes Are Calculated
- Homestead Exemption: What You Need to Know
- IRS Guide to Real Estate Taxes
- Kiplinger’s State-by-State Tax Guide
Conclusion:
Understanding how appraisal and assessment practices differ by state can give you a significant advantage. Whether you’re evaluating your tax liability, budgeting for a mortgage, or building an investment strategy—property valuation isn’t one-size-fits-all.