Assessed Value × CLR: How Pennsylvania Determines Fair Market Value

This is one of the most misunderstood concepts in Pennsylvania real estate — and it has real financial consequences for inheritance tax, realty transfer tax, and property tax appeals.

The Problem

In Pennsylvania, your county tax assessment almost never reflects your property's actual market value. In Bucks County, assessments are dramatically lower than real market values because the county hasn't done a full reassessment in decades. So how does the state figure out what your property is actually worth for tax purposes?

The Common Level Ratio (CLR)

Every year, the Pennsylvania State Tax Equalization Board (STEB) calculates a Common Level Ratio for each county. The CLR compares actual sale prices to assessed values across the county to determine the ratio between the two. From that ratio, a CLR Factor is published — this is the multiplier used to convert an assessed value into an estimated fair market value.

Bucks County's Current CLR Factor: 17.06

For documents accepted from July 1, 2025 to June 30, 2026, the Bucks County CLR factor is 17.06 — one of the highest in the entire state. This means Bucks County assessments are extremely low relative to actual market values.

What This Means in Plain English

If your Bucks County property has a tax-assessed value of $20,000, the state computes the fair market value as:

That $341,200 number is what matters for:

• Realty transfer tax: When there's no actual sale price — like in a family transfer where you claim an exemption, or a transfer for nominal consideration — the Department of Revenue uses assessed value × CLR to determine the computed value. If the computed value is higher than what you reported, they'll assess additional transfer tax, penalties, and interest.
• Inheritance tax (REV-1500): When reporting real estate on the inheritance tax return, you need to establish fair market value as of the date of death. The CLR calculation provides a baseline. If you report a value significantly below the CLR-computed value without a supporting appraisal, expect the Department of Revenue to question it.
• Property tax assessment appeals: If your assessed value × CLR produces a number significantly higher than your property's actual market value, you may have grounds for an assessment appeal. Conversely, the school district or municipality can appeal if the computed value is too low.

Selected CLR Factors for Nearby Counties (2025–2026)

• Bucks County: 17.06
• Montgomery County: 3.25
• Chester County: 3.14
• Delaware County: 1.74
• Philadelphia: 1.00 (assessments are at market value)
• Northampton County: 5.88
• Lehigh County: 2.02

The massive difference between counties reflects how recently each county has reassessed properties. Philadelphia reassesses regularly (factor of 1.00), while Bucks County's assessments are decades old (factor of 17.06). The CLR factor is updated annually and published by the State Tax Equalization Board.