The assessed value of a property is the amount set by the assessor for the purposes of calculating property taxes. Most assessments focus on the market value of the property on a given date. Tax assessors usually use one of three methods to determine the assessed value of a property. The first method is the cost of replacement. This option looks at what it would cost in labor and materials to build the same house using today’s costs. The second method is the income method. This method looks at what amount of income the property owner can expect to get for its use after deducting common expenses like insurance and taxes. The final method is the commonly used market value that uses similar properties sold recently for comparison. All jurisdictions allow taxpayers to contest the assessed value of the property because that directly influences the amount of taxes they pay.