Property tax is a local government tax on real estate or certain types of personal property, such as residential real estate or undeveloped land. The amount you pay depends on the assessed value of your land and any developed structures, such as a home or commercial properties.
While many annual taxes are based on income, property tax is unaffected by an individual’s earnings. Instead, taxation is based purely on the property’s assessed market value (an ad-valorem local or county tax).
Real estate taxes are only estimated on “real” property, such as land or buildings, and not tangible assets. Thus, real estate taxes are one subcategory of your overall property tax portfolio. The terms are usually used synonymously.