Why is My House Valued at "X" but Assessed at "Y"?
After a countywide reassessment, properties are assessed for tax purposes at 100% of their market values. But over time, older assessment values become inaccurate as the real estate market changes. To keep new property tax assessments in line with older ones, the state Department of Revenue sets a
Common Level Ratio Factor for each county every July. For example, Montgomery County has a 2021-2022 common level ratio factor of 2.24, meaning a home’s market value should equal 2.24 times the assessment. Doing the math in reverse, a Montgomery County assessment should equal about 44.643% (1 divided by 2.24) of market value. So, a home with a market value of $100,000 would be assessed at about $44,643, and that assessed value would be used to calculate local property tax bills. The 2021-2022 common level ratio factors that went into effect this month are:
- Bucks: 12.05 (assessments = 8.299% of market value)
- Chester: 2.22 (assessments = 45.045% of market value)
- Delaware: 1 (assessments = 100% of market value)
- Montgomery: 2.24 (assessments = 44.643% of market value)
- Philadelphia: 1.07 (assessments = 93.458% of market value)
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