valuation

equalization factor

An equalization factor is a multiplier applied to assessed values in a taxing district to bring them in line with values elsewhere, so that property taxes are distributed fairly when local assessors have assessed at different levels. A factor greater than 1 raises assessments; a factor less than 1 lowers them. The equalized value is then used to calculate the tax. Whether and how equalization is used varies by state.

Exam tip
Apply the factor to the assessed value before applying the tax rate. Multiply, don't add.
Example
A home assessed at $100,000 in a county with a 1.2 equalization factor has an equalized value of $120,000 for tax purposes.

Related terms & state variants

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23