Question

Are real estate taxes the same as property taxes?

Answer

real estate taxesThe term “property taxes” usually refers to real estate taxes paid on your home or property. Yet, there are many different types of property an individual can own—and each type of property is taxed differently.

What Are Real Estate Taxes?

Real estate taxes are the same as real property taxes. They are levied on most properties in America and paid to state and local governments. The funds generated from real estate taxes (or real property taxes) are typically used to help pay for local and state services.

Personal Property Tax

There is a tax on personal property called “personal property tax,” which isn’t the same. Personal property refers to items that are mobile, rather than real property that’s fixed.

Personal Property Tax Vs. Real Estate Tax

While real estate taxes cover only taxes on real property like a condo, home or rental property, personal property taxes include tangible and movable personal property including, transportation vehicles (like cars, planes, boats, trailers, or mobile homes). Types of personal property subject to personal property tax vary by jurisdiction. in some cases, there may be cases where a mobile home is considered real property and not personal property.

Items not subject to personal property tax include intangible personal property; some jurisdictions may tax certain business personal property items but not the equivalent personal use items.

More Help Navigating Property Taxes

If you need help navigating property taxes, check out our informative state content posts, which cover state-by-state the property tax requirements, rates, and laws.

For personalized tax help, connect with a H&R Block tax pro. Find an office location nearest you now.

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