Tax Assessment vs. Appraisal: Why They Are Different

The Two Values of Your Home

It's a common confusion: You get your "Notice of Proposed Property Taxes" from the Hillsborough County Property Appraiser, and the value listed is $350,000. But you know your neighbor just sold a similar house for $500,000. Why the gap?

Market Value (The Appraisal)

Market value is what a willing buyer would pay a willing seller today. It fluctuates with the economy, interest rates, and local demand. A private appraisal determines this figure based on recent comparable sales ("comps").

Assessed Value (The Tax Man)

Assessed value is a retrospective value used solely for calculating property taxes. In Florida, thanks to the Save Our Homes amendment, the assessed value for homesteaded properties can't increase more than 3% per year, regardless of how much the market value jumps. This creates a widening gap over time for long-term owners.

When Do You Need Which?

• Selling/Refinancing: You need Market Value. Lenders don't care about your tax assessment.
• Paying Taxes: You care about Assessed Value. If you think it's too high (higher than market value), you can appeal it.

Can an Appraisal Help with Taxes?

Yes! If your assessed value is higher than actual market value (which can happen when markets drop), you can use a private appraisal as evidence to petition the Value Adjustment Board for a reduction.