What is property tax?

Property tax is a tax assessed on real estate by the local government, typically based on the value of the property you own. It is not about making payments for renting a home, maintaining a property, or paying off a loan. Instead, property taxes are used to fund essential local services such as schools, fire departments, police, and infrastructure.

While the answer related to escrow for a mortgage loan touches upon financial aspects of homeownership, it does not accurately define what property tax itself is. A better understanding of property tax would emphasize that it is a separate obligation that property owners must pay, often included in their mortgage payments through an escrow account, but is distinct from the costs of the loan itself or associated fees.