Property Tax

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DEFINITION of 'Property Tax'

A tax assessed on real estate by the local government. The tax is usually based on the value of the property (including the land) you own.

INVESTOPEDIA EXPLAINS 'Property Tax'

This tax is mainly used by municipalities for repairing roads, building schools and snow removal, or other similar services.

RELATED TERMS
  1. Assessment

    Occurs when an asset's value must be determined for the purpose ...
  2. Listed Property

    A specific class of depreciable property that is subject to a ...
  3. Property Tax Deduction

    State and local property taxes that are generally deductible ...
  4. Income Tax

    A tax that governments impose on financial income generated by ...
  5. Land Value

    The value of a piece of property, including both the value of ...
  6. Ad Valorem Tax

    A tax based on the assessed value of real estate or personal ...
RELATED FAQS
  1. What are the best and worst states to pay taxes in?

    Most people can probably guess the two worst states for taxation in the U.S. – New York and California. The two best, Wyoming ... Read Full Answer >>
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