Preparing for 2026: Property Tax Assessments

With property tax assessments arriving in January, it’s a smart time for homeowners to pause and take a closer look at what those numbers actually mean—and just as importantly, what they don’t. While assessment notices can spark questions or concern, understanding how they’re calculated can help you plan ahead with confidence.

Property tax assessments are based on your home’s estimated value as of July of the previous year. This timing is key. Real estate markets can shift significantly in a matter of months due to interest rates, inventory levels, buyer demand, and broader economic factors. As a result, your assessment may not reflect today’s market conditions or what your property could realistically sell for in 2025.

It’s also important to remember that assessed value and market value are not the same thing. Assessments are used strictly for taxation purposes, helping municipalities fairly distribute the tax burden across properties. A higher assessment doesn’t automatically mean you could sell your home for that amount, and a lower one doesn’t necessarily indicate lost value. Buyers determine market value based on comparable sales, current demand, and a home’s condition—not on tax assessments.

This is where being proactive can pay off. If you’re curious about how your home truly compares to today’s market, or if you’ve been considering renovations, upgrades, or a future move, now is an ideal time to request a home equity report. This type of report looks at recent comparable sales and current market trends to give you a clearer picture of your home’s real-world value.

Understanding your equity can help with more than just selling. It can guide renovation decisions, inform refinancing conversations, and help you plan strategically for the year ahead. Certain improvements may influence future market value, while others are better enjoyed for lifestyle benefits alone.

As we look ahead to 2026, taking the time now to understand your assessment, your equity, and your options puts you in a strong position.