Real Estate Term
Property Tax
An annual tax paid to the municipality based on the assessed value of the property.
What is Property Tax?
Property tax is an annual tax charged by your municipality to fund local services like schools, roads, and emergency services. It is calculated by applying the local tax rate to your property's assessed value, so a higher assessment generally means a higher bill. Owners typically pay it in instalments, and it is an ongoing cost to factor into affordability.
Frequently asked questions
Related terms
AssessmentThe value placed on a property by a municipality for tax purposes.Closing CostsFees and expenses paid at closing, including legal fees, land transfer tax, and other charges.AppreciationAn increase in property value over time due to market conditions or improvements.Pre-ConstructionA property that is sold before or during the construction phase.PrincipalThe amount of money borrowed in a mortgage, excluding interest.
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