Property tax Property tax is a tax collected from the owners of buildings, land, and other taxable property, including business equipment and inventory.
Some governments also collect taxes from the owners of such property as stocks and bonds.
Property taxes provide much of the income of cities, counties, towns, and school districts in the United States, Canada, and many other countries. Local governments depend on these taxes to help finance education, police and fire protection, street repair, and other services. Some state and provincial governments also collect property taxes. The government of a community sets an annual tax rate to determine each property owner's tax bill. In many cases, the assessed worth is less than the property's market value.