Calculate Equalization Rate (State Rate)
Calculate Implied Market Value
Calculate Assessed Value
$%
$%
Result
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Understanding the Equalization Rate
The Equalization Rate is a critical metric in real estate taxation that measures the relationship between a municipality's total assessed property value and the total market value of those properties. It effectively represents the percentage of full market value at which properties are assessed.
State authorities often determine this rate to ensure fairness in distributing county and school district taxes among different municipalities, as different towns may assess properties at varying percentages of their true value.
Formula: Equalization Rate = (Total Assessed Value ÷ Total Market Value) × 100
Why This Calculation Matters
Tax Fairness: It ensures that two properties with the same market value pay the same amount in taxes, even if they are in different assessment jurisdictions.
Assessment Challenges: Homeowners use the equalization rate to determine if their property is over-assessed. If your property's assessed value implies a market value higher than what you could sell it for, you may have grounds for a grievance.
School Aid & Exemptions: States use these rates to distribute aid and determine the value of property tax exemptions (like STAR in New York).
How to Interpret the Results
If the Equalization Rate is 100%, the municipality is assessing property at its full market value. A rate of less than 100% means property is assessed at a fraction of its value, while a rate higher than 100% (rare) suggests properties are assessed higher than current market values.
Calculation Scenarios
1. Finding the Rate: Used by municipal officials or curious homeowners comparing their assessment to a recent appraisal or sale price.
2. Finding Implied Market Value: Essential for homeowners. By dividing your Assessed Value by the Equalization Rate, you get the "Implied Market Value." If this number is higher than what you believe your home is worth, your taxes may be too high.
3. Finding Assessed Value: Useful for estimating what the tax assessment should be for a newly purchased home based on the town's prevailing rate.
function updateEqLabels() {
var mode = document.getElementById("eqCalcMode").value;
var label1 = document.getElementById("label1");
var label2 = document.getElementById("label2");
var prefix1 = document.getElementById("prefix1");
var prefix2 = document.getElementById("prefix2");
var suffix1 = document.getElementById("suffix1");
var suffix2 = document.getElementById("suffix2");
var input1 = document.getElementById("input1");
var input2 = document.getElementById("input2");
// Reset display
prefix1.style.display = "block";
prefix2.style.display = "block";
suffix1.style.display = "none";
suffix2.style.display = "none";
// Clear inputs for clean switch
input1.value = "";
input2.value = "";
document.getElementById("eq-result").style.display = "none";
if (mode === "findRate") {
label1.innerHTML = "Total Assessed Value";
label2.innerHTML = "Total Market Value (or Sale Price)";
input1.placeholder = "e.g., 150000";
input2.placeholder = "e.g., 200000";
// Both are currency ($), default settings apply
} else if (mode === "findMarket") {
label1.innerHTML = "Total Assessed Value";
label2.innerHTML = "Equalization Rate";
input1.placeholder = "e.g., 150000";
input2.placeholder = "e.g., 75";
// Input 2 becomes Percentage
prefix2.style.display = "none";
suffix2.style.display = "block";
} else if (mode === "findAssessed") {
label1.innerHTML = "Total Market Value (or Sale Price)";
label2.innerHTML = "Equalization Rate";
input1.placeholder = "e.g., 200000";
input2.placeholder = "e.g., 75";
// Input 2 becomes Percentage
prefix2.style.display = "none";
suffix2.style.display = "block";
}
}
function calculateEqualization() {
var mode = document.getElementById("eqCalcMode").value;
var val1 = parseFloat(document.getElementById("input1").value);
var val2 = parseFloat(document.getElementById("input2").value);
var resultDiv = document.getElementById("eq-result");
var resultLabel = document.getElementById("resultLabel");
var resultValue = document.getElementById("resultValue");
var resultExplanation = document.getElementById("resultExplanation");
if (isNaN(val1) || isNaN(val2) || val1 < 0 || val2 < 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// Avoid division by zero
if (val2 === 0) {
alert("The second value cannot be zero.");
return;
}
var result = 0;
var text = "";
var explanation = "";
// Logic Handling
if (mode === "findRate") {
// Formula: (Assessed / Market) * 100
result = (val1 / val2) * 100;
text = result.toFixed(2) + "%";
resultLabel.innerHTML = "Calculated Equalization Rate";
explanation = "Your property is assessed at " + text + " of its market value. Formula: ($" + val1.toLocaleString() + " / $" + val2.toLocaleString() + ") × 100";
}
else if (mode === "findMarket") {
// Formula: Assessed / (Rate / 100)
var rateDecimal = val2 / 100;
if (rateDecimal === 0) { alert("Rate cannot be zero"); return; }
result = val1 / rateDecimal;
text = "$" + result.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultLabel.innerHTML = "Implied Market Value";
explanation = "Based on an assessed value of $" + val1.toLocaleString() + " and a rate of " + val2 + "%, the tax authority believes the full market value is " + text + ".";
}
else if (mode === "findAssessed") {
// Formula: Market * (Rate / 100)
var rateDecimal = val2 / 100;
result = val1 * rateDecimal;
text = "$" + result.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultLabel.innerHTML = "Estimated Assessed Value";
explanation = "A property with a market value of $" + val1.toLocaleString() + " at an equalization rate of " + val2 + "% should be assessed at approximately " + text + ".";
}
resultValue.innerHTML = text;
resultExplanation.innerHTML = explanation;
resultDiv.style.display = "block";
}