Your Assessed Value is based on a percentage of your Market Value. This percentage is known as the Level of Assessment or Assessment Ratio. Your Assessment Ratio depends on your tax class.
Tax class 1
| 6% |
| Tax class 2, 3 and 4 || 45%|
Limits on Increases for Class 1, 2a, 2b and 2c properties.
State law limits how much Assessed Values can increase each year for certain tax classes. Your tax class determines what limits apply to your property:
Tax class 1 - 6% per year, no more than 20% over 5 years.
Tax class 2a, 2b, 2c - 8% per year, no more than 30% over 5 years for building with 10 or less units.
Tax classes 2 and 4 - Read about Transitional Assessed Values for information on how your Assessed Values are phased in.
For tax class 1, 2a, 2b and 2c properties:
- The assessed value you see on your notices from Finance may be different than what you would get if you multiply your Market Value by the assessment ratio. This is because of the limits on assessment increases.
- You may find that even when your Market Value has gone down, your Assessed Value continues to go up. This will happen if your actual Assessed Value, taking into account limits on assessment increases, is lower than the assessment ratio - 6% for tax class 1 or 45% for tax class 2a, 2b, 2c.
Assessed Value if increases were
Assessed Value with Caps on Increases