Property Taxes
Fair Market Value vs. Assessed Value in Georgia
Two different numbers, one relationship: understanding how they connect is essential before you appeal.
Few things about Georgia property taxes confuse homeowners more than seeing two different dollar figures on the same Annual Notice of Assessment. Fair market value and assessed value are related but distinct — and knowing exactly how they connect is essential before you decide whether (and how) to appeal.
Fair Market Value
The price a property would likely sell for in an open, competitive market between a willing buyer and a willing seller, neither under undue pressure, with reasonable market exposure. This is the figure a professional appraisal is built to estimate.
Assessed Value
Georgia law generally sets assessed value at 40% of fair market value for residential property. It's a derived number — the county doesn't estimate it independently, it's calculated directly from whatever fair market value figure the county has assigned to your property.
How the Two Numbers Connect
Because assessed value is mechanically derived from fair market value, there's only one number worth disputing in an appeal: the county's opinion of fair market value.
Why Fair Market Value and Reality Can Diverge
If a county's fair market value estimate always perfectly matched what a property would actually sell for, appeals wouldn't exist. In practice, several things commonly cause a gap:
Timing lag
Mass appraisal models are typically calibrated using sales data from a prior period, so rapidly rising or falling markets can be under- or over-represented.
Generalized adjustments
A countywide model applies broad adjustments for size, age, and location that may not fit an individual property precisely.
Record errors
Incorrect square footage, room counts, or condition assumptions in county records directly distort the resulting value.
Unique property characteristics
Deferred maintenance, functional obsolescence, or an unusual lot can meaningfully affect market value in ways a mass model may not capture.
Where an Independent Appraisal Fits In
An independent appraisal develops its own opinion of fair market value based on your specific property's inspection, condition, and genuinely comparable sales — the same fundamental question a county's mass appraisal model is trying to answer, but at an individual-property level of detail. That's why an appraisal report is commonly used as supporting evidence at a Board of Equalization hearing: it directly addresses the number the appeal is actually about.
Related Georgia Property Tax Resources
Frequently Asked Questions
This information is provided for general educational purposes about Georgia property taxation and is not legal or tax advice. Millage rates and exemptions vary by county and taxing jurisdiction — confirm details with your local tax authorities or the Georgia Department of Revenue.