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When local governments calculate property taxes, they typically calculate the amount of the tax based on the assessed value rather than the market value. You can either calculate the assessed value based on the market value of the home and the assessment rate or your property tax bill and the property tax rate. If you use the first method, you also need to know which, if any, exemptions apply to the assessment value of your home.

Multiply your property's market value by the assessment rate for your locality to find the assessed value before exemptions. For example, if your locality assesses at 40 percent and your home has a fair market value of $180,000, multiply $180,000 by 0.4 to find the assessed value before exemptions equals $72,000.

Subtract any exemptions from the result to find your property's assessed value. In this example, if you qualify for an exemption of $7,000, subtract $7,000 from $72,000 to find your property's assessed value equals $65,000.

Divide your property tax bill by the property tax rate to calculate your property's assessed value. For example, if you paid $1,430 in property taxes and the local property tax rate equals 2.2 percent, divide $1,430 by 0.022 to find your property's assessed value equals $65,000.