Property tax is an annual tax on land and buildings and is a major source of local-government revenue in many countries.
It is usually assessed on real property, meaning land and structures permanently attached to it. A local authority commonly determines an assessed value and applies a tax rate, although systems differ widely. Some jurisdictions tax land and buildings separately, while others use a combined valuation.
Property taxes often fund services closely connected with local communities, including schools, roads, fire protection, libraries, and waste collection. Because immovable property cannot easily be moved to another jurisdiction, local governments can generally administer this tax more reliably than some other revenue sources.
Property tax is not the same as a transfer tax, which is charged when ownership changes, or a capital-gains tax, which applies to profit from selling an asset. Assessment rules, exemptions, payment dates, and rates vary substantially between countries and even between neighboring municipalities.