Does Property Value Directly Affect the Tax Rate?

Property owners may be concerned about the effects that the housing market will have on their property taxes. Increases or decreases in market value of property do not drive the tax rate. In fact, if the market value of the average property increases by 25%, the tax rate is actually reduced by 25% to compensate. However, there are cases where properties have market value increases or decreases outside of the average, and that will affect the amount of taxes paid on those specific properties.