Real estate taxes, also known as property taxes, are taxes imposed on real estate by a government for services rendered. The taxes are usually based on the relative value of the property. The more expensive the property, the higher the real estate taxes will be for that property.

While real estate taxes are somewhat controversial, there is a substantial history behind them. Some say they are fair, simply because the tax is progressive. It is thought those with higher property values will have the ability to pay more, simply because they were able to afford more expensive properties. However, some have seen property values increase while still holding onto their property and never receiving a substantial increase in income.

To help protect those people who have limited income but valuable property, some jurisdictions have imposed rules to help protect some from real estate taxes. In some cases, the protections even freeze real estate taxes at a certain level, as long as the property maintains the same owner. In other cases, valuation increases can only be a percentage of the annual inflation rate.

Real estate taxes are determined by taking the taxable value of the property, which may not be the same as its assessed value, and figuring the tax based on the levy rate. The rate is listed as a value per $100 US Dollars (USD) of the value of the property, or per $1,000 USD of the taxable value. This helps individuals understand exactly how their value affects their taxes.

For homeowners, there are sometimes special considerations that help to bring down the amount paid in real estate taxes, especially if it is a primary residence. The homeowner may receive a homestead exemption. In some states, residential properties occupied by the owner may be valued at a lower rate than other types of properties, such as commercial and industrial. This class difference can also create a controversy and spur accusations of being discriminatory.

In the United States, real estate taxes are regulated at the state level. In many states, real estate taxes go strictly to support a local government, such as a municipality, county or both. Some money may also go to the state, but this portion is generally much less than what is awarded to the local governments.

Due to this great dependence on real estate taxes, local governments find it in their best interest to increase property values, thus increasing the tax base. This is a design of the system, which hopes to encourage local governments to actively engage in economic development efforts. Economic development means improvements to property, thus increasing its value and bringing in more revenue. In some cases, local residents claim may criticize their cities and counties when homes are assessed at a certain amount for taxes. The residents may claim the assessed value does not agree with the market value, and may be a way to simply raise more revenue without increasing the actual levy rate.