Property tax is a common levy imposed on various physical properties, including homes, real estate, and land, making it a fundamental aspect of homeownership in the United States. The local government imposes property taxes on property owners within a given jurisdiction.

This form of taxation is often termed ad-valorem, as it is calculated as a percentage of the property's assessed value. Property taxes may be assessed annually, semi-annually, or quarterly, depending on the state or locality. For some homeowners, property tax payments are conveniently integrated into their mortgage through an escrow account with their mortgage service providers.

The assessors or appraisers working for the local taxing authority will assess the property's value to determine the property tax rate. This assessed value is then multiplied by the prevailing tax rate in the jurisdiction. Typically, tax rates are subject to annual adjustments by taxing authorities.

Revenue generated from property taxes constitutes a primary income source for many local governments across the United States. These funds are utilized for various community purposes, including the construction of schools, funding for police and fire departments, road maintenance, and the development of other essential public amenities benefiting the community.