New York State Real Estate Salesperson Licensing Exam 2025 – 400 Free Practice Questions to Pass the Exam

Property taxes are primarily based on assessed value. This assessed value is determined by the local government or tax assessor, who evaluates the property to establish a value for tax purposes. The assessment process takes into consideration various factors, such as the property's location, size, and improvements. This assessed value is then applied to the local tax rate to determine the total property tax owed.

Market value, fair market value, and appraised value are related terms, but they are distinct from assessed value. Market value refers to what a property would sell for in a competitive and open market, while fair market value is the price a willing buyer would pay a willing seller in an arm's length transaction, generally without undue pressure. Appraised value is determined by a professional appraiser and reflects the estimated worth of a property based on comparable sales and other factors. However, none of these values directly dictates the property tax calculations, which rely specifically on the assessed value set by local authorities.