Are you seeing one value on your tax bill and a very different number in recent sales? You are not alone. In Dane County, it is common to confuse a home’s assessed value with its market value, especially when prices are moving fast. Understanding the difference helps you estimate taxes, price your home correctly, and decide whether to challenge an assessment. In this guide, you will learn how assessments work in Madison and across Dane County, what the Jan. 1 valuation date means, how to appeal, and how to use the right numbers when you buy or sell. Let’s dive in.
Market value is the price a willing buyer would pay a willing seller on a given date under normal conditions. Appraisers and agents estimate it using recent comparable sales, income data for rentals, or the cost to replace the property minus depreciation. When you negotiate a purchase or set a list price, you should rely on market value.
Assessed value is assigned by your local assessor for property tax purposes. In Wisconsin, assessors are required to value property at full market value as of January 1 of the assessment year. That means your assessment is a snapshot tied to that date. If the market rises or falls after January 1, your assessed value may lag until the next cycle.
You may also see equalized value and taxable value. Equalized value is calculated by the Wisconsin Department of Revenue to place all municipalities on a common basis for comparisons and funding. It is not a separate tax. Taxable value is your assessed value after exemptions or classifications are applied. Each term serves a different purpose, so read your notices carefully.
The assessment cycle centers on January 1. That date anchors the value the assessor is required to estimate. Many Dane County municipalities, including the City of Madison, use mass appraisal methods to keep values current and may revalue annually or every few years. The frequency varies by municipality.
Assessors rely on public records and market data. Common inputs include recent arm’s‑length sales in your area, building permits, inspection records, and the details listed on your property record card. For rental and commercial properties, assessors may also consider income and expenses. If the information on your record card is wrong, your assessment can be off.
Because assessments reflect the market as of January 1, any sale or renovation later in the year might not show up until the next assessment. In fast‑moving markets, that timing gap is a big reason your assessed value can differ from what your home would sell for today. Revaluations aim to close that gap across an entire municipality but do not guarantee that every individual property perfectly matches its current sale price.
Your property tax is based on your municipality’s levy and the total tax base. A simple way to think about it is: Tax = (Assessed Value minus exemptions) multiplied by the local mill rate, then divided by 1,000. The levy is set through the local budget process. Mill rates adjust to raise the dollars needed. If everyone’s assessments rise together, the rate may fall. If your assessment rises more than average, your share usually increases.
Open Book is your first step. During this informal review period, you can meet with the assessor, verify your property record card, and share new information. Bring photos, permits, repair invoices, and recent comparable sales near the January 1 date. Many issues resolve here, especially if there are factual errors like square footage or bath count.
If Open Book does not resolve your concerns, you can file a formal objection with your municipal Board of Review. Deadlines and forms are set locally, and you typically must appear at the hearing or send an authorized representative. The Board evaluates evidence under state law. Read your assessment notice for dates and instructions and file early to avoid missing the window.
Stronger evidence makes a stronger case. Useful items include:
The burden is on you to show the assessment is incorrect. Focus on the January 1 valuation date and present clear, relevant data.
Assessed value is not your offer price. It is a tax tool with a different purpose and timing. Here is how to use it well as a buyer:
If you are relocating to Dane County or comparing neighborhoods, keep school district mentions neutral and rely on public sources for objective information. We can help you interpret local tax trends as part of your due diligence.
Price your home for the market, not the assessment. Your listing strategy should reflect current demand, comparable sales, and your home’s condition.
As part of our listing process, we prepare a data‑driven price recommendation and handle presentation details that support your value. Compass Concierge can help you complete strategic prep and staging so your home shows its best.
After local assessments are finalized, the Wisconsin Department of Revenue calculates equalized values. This process compares municipal assessed values to the department’s estimate of market value and produces ratios used for statewide comparisons and funding formulas. Equalization does not change what you pay individually, but it does highlight whether a municipality’s assessments are above or below market levels. When assessments lag, revaluations help reset the baseline.
As a boutique, family‑run team with decades in Greater Madison, we combine data‑driven pricing with white‑glove guidance. For buyers, we deliver clear comps and negotiation strategy. For sellers, we pair accurate valuation with premium marketing, staging, and Compass Concierge to elevate presentation. For complex cases, we coordinate with appraisers and, when needed, guide you through Open Book and Board of Review steps so you can make informed decisions.
Ready to understand your assessment, price with confidence, or get ahead of tax questions before you list? Get Your Free Home Valuation from Lessing Real Estate, and let’s talk through your options.
7633 Ganser Way Suite 101 Madison, WI 53719
7633 Ganser Way Suite 101 Madison, WI 53719