Yes it's a percentage of the current market value. The value is determined by the county tax assessor in all states I'm familiar with. They usually try to lowba

Yes it's a percentage of the current market value. The value is determined by the county tax assessor in all states I'm familiar with. They usually try to lowball the value by 10% or more. That way no one can really complain they valued the house more than you can sell it for. 60% of actual market value is official policy in Alaska my friend told me. Usually there are various discounts and deductions depending on the taxing entity. E.g. for your primary residence you deduct $100k off the value. Value growth YoY is capped at 10%. If you are over 65 the tax owed is capped until you die. X% off for disabled veterans, etc etc. People complain about the amount they are paying, but I've never heard serious complaints the system is unfair or corrupt (though I'm sure it exists somewhere). The assessors use the statistics they know about your house, sq. ft., lot size, etc as well as neighborhood "comps" for what similar houses have sold for. Also there is a lengthy and formal protest period every year. In Texas there is a cottage industry of lawyers that will protest your property value for you. Sign some documents and they will send letters and show up at protest proceedings and send you a bill for 30% of the tax they saved you. No money out of pocket and nothing owed if you don't save money.