Assessed value is the dollar amount assigned to a property by the assessment authority for the purpose of calculating property taxes. While assessed value is based on market value (what the property would sell for), they are not always identical due to assessment timing, mass appraisal methods, or provincial rules. Your property taxes are calculated by multiplying your assessed value by the municipal tax rate. If your assessed value increases, your taxes may increase—though in competitive real estate markets, many properties rise together, and municipalities may adjust tax rates. Property owners can appeal if they believe their assessed value is incorrect.