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Property tax: what it means

Property tax is the tax the county, city, school district and other local bodies charge real property owners every year to pay for schools, police, fire and other public services. It is computed on the value the assessor's office assigns to your home, at each body's rate, minus the exemptions you qualify for, such as the primary-residence exemption in many states.

In Spanish it is

Impuesto a la propiedad

Also written as: real estate tax · real property tax · property taxes

The full explanation

If you have a mortgage you normally pay it month by month inside your payment, through the escrow account. It is generally deductible on your federal return if you itemize.

An example

Beatriz's payment went up even though her interest rate did not change. The reason was property tax: the county raised her home's assessed value and her escrow account needed more each month.

With real numbers

Computed with official data for the whole U.S. In your county the numbers may differ.

Typical tax per year
$3,119
Per month
$260
Typical effective rate
0.94%

The typical U.S. homeowner pays $3,119 a year in property tax, about $260 a month. Compared with the typical home value, that is close to 0.94% a year. In your county it can be very different.

Computed with: American Community Survey (ACS) 5-year estimates (2020–2024)

You will see it in…

  • The county's annual bill (“property tax bill”) and the assessment notice
  • The Loan Estimate and your escrow statement
  • Your state's property-tax page on aquitucasa, with exemptions and deadlines

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “property tax”

More words on this topic: Owning

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Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

  1. 1. IRS · Topic no. 503, Deductible taxes · in English · Verified on October 16, 2026
  2. 2. U.S. Census Bureau · American Community Survey subject definitions: real estate taxes · in English · Verified on October 16, 2026