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Both other answers are correct, however I just want to add a clarification. The answer is Yes, finished basements count towards sq ft of home, however, only the upper 2 levels are recorded as "living area" in tax records and MLS. and that is how your home is "appraised" by your county. If there were permits done when finishing your basement, it will also show in the tax records. If no permits were pulled "we see this many times and it is no big deal", then tax records will not show any finished basement. If you are refinancing or selling, the basement sq ft will show, but you will get added value not by $-sq ft ratio, but by finished sq ft/basement $ amount. This number is significant based on what is finished and how, i.e. extra bath, granite, media room, etc, etc. Good Luck.
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For Sale: $638,050
For Sale: $264,990
For Sale: $263,000