Appraised Value vs. Assessed Value

Two Different Numbers — One Critical Distinction

Understanding the Two Values

One of the most common points of confusion in the Kansas property tax system is the difference between appraised value and assessed value. These are two distinct numbers, and understanding both is essential to reading your tax statement correctly.

Appraised Value

  • Also called fair market value
  • The county appraiser’s estimate of what your property would sell for in an open market
  • Based on sales of comparable properties, cost approach, or income approach
  • Set by the county appraiser annually on January 1
  • This is not the number used to calculate your tax bill directly

Assessed Value

  • Derived by multiplying appraised value by the assessment rate
  • The assessment rate depends on your property’s classification
  • Always lower than appraised value
  • This is the number used to calculate your actual tax bill
  • Mill levies are applied to assessed value, not appraised value

Side-by-Side Comparison

Comparison of appraised value and assessed value across property classes
Major Property Classes Example Appraised Value Assessment Rate Assessed Value
Residential $100,000 11.5% $11,500
Commercial $100,000 25% $25,000
Vacant Lot $100,000 12% $12,000
Agricultural Land $10,000 30% * $3,000

* The 30% agricultural land assessment rate is not directly comparable to the rates for other property classes. For all other classes, the assessment rate is applied to fair market value (FMV). Agricultural land, however, is assessed based on its economic use value — a measure of the income-producing capacity of the land — not what it would sell for on the open market. The two rates are apples and oranges: the higher 30% percentage is applied to an economic use value that is typically much lower than what the land would fetch on the open market.

Kansas law taxes assessed value, not appraised value. The assessment rate acts as a buffer between the full market value of your property and the value that is actually taxed.

Why This Distinction Matters

When you receive a notice of value from your county appraiser, it will show your appraised value. This is the value you have the right to appeal if you believe it does not reflect fair market value. Your assessed value is simply the appraised value multiplied by your class’s assessment rate — if the appraised value is correct, the assessed value follows automatically.

Understanding this distinction helps you know what to appeal (the appraised value) and how your tax bill is ultimately computed.