Many people mix property and real estate taxes and think they’re similar. But are property taxes the same as real estate taxes? What to expect from them?
When you own a property or house, you understand the real estate taxes. Your local government charges your property’s value through this tax.
Most homeowners don’t know about property and real estate taxes. They combine them, but the truth is different.
These taxes differ from each other. Learning if are property taxes the same as real estate taxes are suggested to avoid confusion.
Are Property Taxes The Same As Real Estate Taxes? Know The Real Variation!
The following are the considerations to learn the differences between property and real estate taxes.
Understanding Real Estate Taxes
These taxes are primarily known as the taxes levied on real properties. And that includes any land or permanent structure attached to it like:
- Houses.
- Buildings.
- Commercial properties.
These taxes are imposed by your local government to fund essential public services, including:
- Public schools.
- Emergency services.
- Road maintenance.
- Parks and recreational facilities.
The value of the real estate tax owed depends on the assessed property’s value and the locale tax rate. A local tax assessor determines this tax’s value and evaluates the property’s market value.
Explaining Property Taxes
Property taxes are broad terms. These taxes include real estate taxes but personal property taxes, which are imposed on movable properties like:
- Vehicles.
- Business equipment.
- Machinery.
- Livestock.
Real estate taxes are a type of property tax, but not all property taxes include real estate taxes. They vary by state and jurisdiction and require separate fillings and payments.
How Are These Taxes Paid?
There are differences in payment of real estate and property tax methods.
- Most homeowners pay real estate taxes as part of their mortgage escrow account. Their lenders collect and pay these taxes on their behalf. Local authorities usually send tax bills annually or semi-annually to those without mortgages.
- On the other hand, personal taxes are paid independently and require separate billing.
Key Differences To Consider
The following are the differences between real estate and property taxes.
Feature | Real Estate Taxes | Property Taxes |
What’s Taxed | Land and permanent structures | Both real and personal property |
Who Imposes It? | Local governments (counties, municipalities) | Local and sometimes state governments |
Common Uses | Schools, roads, emergency services | Schools, infrastructure, and general government funding |
Examples | House, commercial building, land | House, cars, boats, business equipment |
Conclusion
To conclude, are property taxes the same as real estate taxes? Although real estate taxes are a part of property taxes, they are not always synonymous. Understanding their differences ensures property owners can differentiate these taxes and pay them without hesitation.
Get in touch today Las Vegas Real Estate Agents to find out what we can do to make your real estate goals a reality. Feel free to call: (702) 688-3508.
Helpful Links
Here are a few helpful links that may assist in your search for a Las Vegas homes for sale:
Richard Slezak, Las Vegas Realtor®
Agent License: S.0201790
Call: (702) 688-3508
MAIL: richardslezak@gmail.com
Address: 2298 W Horizon Ridge Pkwy #114, Henderson, NV 89052, USA
