Jonathan LopezWhy Is My Property Tax Bill So Different From What My Woodland Hills Home Is Actually Worth?
Woodland Hills homeowners who've owned their home for a while run into a confusing moment sooner or later: the county's tax bill says the house is worth one number, and everything else, agent estimates, neighborhood sales, even a casual Zillow look, says it's worth a lot more. Both numbers are legitimate. They just answer two completely different questions. This is educational information, not tax advice, a CPA or the LA County Assessor's office is the right resource for your specific situation.
Assessed Value Is a Tax Number, Not a Sale Number
California's Proposition 13, passed in 1978, caps how fast a home's assessed value (the number your property tax bill is based on) can grow: a maximum of 2% per year, or the rate of inflation if that's lower, no matter what happens to actual home prices in the market. That cap holds until one of two things happens: the property is sold (which resets the assessed value to the new purchase price) or major new construction is added. This comes straight from the LA County Assessor's office and the State Board of Equalization.
Market Value Works Completely Differently
Market value is what a buyer would actually pay for the home today, based on current comparable sales, condition, and demand. It has no cap and can move every month. In Woodland Hills, the current median sale price is $1,372,000 (Movoto, data updated July 15, 2026). A home's market value can rise well past its capped assessed value year after year, especially for owners who've held the property for a decade or more.
How the Gap Grows, in Simple Math
Here's an illustrative example, not a real case, just the mechanic worked out: a home purchased for $500,000 in 2005 would have a 2026 assessed value of roughly $758,000 under the 2% cap ($500,000 multiplied by 1.02 to the 21st power, since 2% compounds annually over 21 years). Meanwhile, comparable homes in the same neighborhood are selling for Woodland Hills' current median of $1,372,000. That's a gap of about $614,000 between the number on the tax bill and the number the home would actually sell for today. The longer the ownership, the wider this gap typically gets.
Why This Matters If You're Thinking About Selling or Refinancing
A low assessed value is a genuine, valuable benefit while you own the home, it keeps your property tax bill predictable and often well below what a recent buyer next door is paying. But it has nothing to do with what the home would sell for, and it should never be used as a stand-in for a real valuation when deciding whether to list, refinance, or estimate what you'd walk away with in a sale. The only way to know your specific home's current market value is a real comparative market analysis using actual recent sales. If you're considering selling, here's how Jonathan's pricing process works.
Frequently Asked Questions
Does my property tax bill tell me what my house is worth?
No. It reflects your assessed value, which is capped at a maximum 2% annual increase under Proposition 13 regardless of market conditions. Your home's actual market value is a separate number based on current comparable sales.
Why is my assessed value so much lower than what my neighbor just paid for a similar house?
Because your assessed value only resets to full market value when a property changes ownership. If you've owned your home for years while your neighbor bought recently, your neighbor's assessed value starts at their purchase price while yours has only grown 2% a year since you bought.
Will my property taxes jump to match my home's real market value?
Not while you own it. Assessed value only resets upon a change of ownership or major new construction. Selling the home is what triggers a reassessment to full market value for the new owner, not market appreciation on its own.
If my assessed value is so much lower, does that mean my home isn't really worth as much as agents say?
No. The two numbers measure different things entirely. Assessed value is a capped tax figure. Market value is what buyers are actually paying for comparable homes right now. A low assessed value is a tax benefit, not a valuation.
Call (818) 934-7576 for your Woodland Hills home's real market value, not the tax-bill version.
Disclaimer: Jonathan Lopez is a licensed real estate agent, not a tax professional or attorney. Property tax rules and figures cited here can change, and this is general information, not legal or tax advice. Verify current rules with the LA County Assessor's office or a CPA before making decisions based on this article.