What does taxable value refer to?

Taxable value refers to the value that a governmental unit uses to determine the amount of property taxes owed. This value is derived from the assessed value of the property, which is typically calculated by local tax assessors. The taxable value appears on property tax statements and is critical for calculating the property tax bill.

It may take into account various factors, including any exemptions, deductions, or adjustments that apply to the property. For example, a home may have an assessed value based on its market value, but certain local laws might allow for exemptions that reduce the amount of that assessed value when determining the taxable value.

Understanding the distinction between taxable value and other terms like market value, assessed value, or sale price is essential for accurately comprehending how property taxation works. The market value refers to what the property might sell for on the open market, while assessed value can include adjustments based on the local governmental assessment process. These differences highlight why taxable value specifically pertains to taxation purposes as determined by the local governmental entity.