Property Tax
Property taxes and Real estate taxes are interchangeable terms.
Local governments levy property taxes on property owners within their locality. Governments use taxes to provide taxpayers with various services, including schools, police, fire and garbage collection. Property taxes are calculated by applying an assessment ratio to the property’s fair market value.
Sometimes you’ll also see a special assessment tax. This occurs when your locality needs to raise money to fund a specific project.
Property Tax Exemption
Most areas offer property tax exemptions to certain demographics.
Tax Deduction
You can deduct property taxes from your federal income taxes. The Tax Cuts and Jobs Act enforced a $10,000 cap for married couples filing jointly ($5,000 if married filing separately). This means you can deduct up to the first $10,000 paid in property taxes per year on your federal income taxes. There's one catch here.