Are Real Estate Taxes the Same as Property Taxes?

Robert Jones • February 17, 2026

Are Real Estate Taxes the Same as Property Taxes?

Of course, I am a Real Estate Professional – but I am not a CPA nor Tax Professional. 

The discussion below covers some questions that have some up in my practice – and I hope it proves informative. That said, if you would like further information, I would recommend speaking to a Tax Professional and/or Title Company as some taxes, especially transfer taxes, can be different in different regions.

If you’ve ever owned a home, purchased land, or looked into real estate investment, you’ve probably come across the terms “real estate tax” and “property tax.” Many people use them interchangeably—but are they really the same thing? The short answer: they’re closely related, but not always identical. Understanding the difference can help you manage your finances better and avoid confusion when paying taxes on your property.


What Are Real Estate Taxes?

Real estate taxes are taxes imposed by local governments—such as cities, municipalities, or provinces—on the value of your real property. This includes the land and any structures built on it, like homes, buildings, or garages. These taxes are typically collected annually and fund important public services such as schools, road maintenance, and emergency services.

In most cases, the term “real estate tax” refers specifically to taxes on immovable property—land and permanent structures that cannot be moved. So, when you receive a bill from your local government for your home or lot, that’s considered a real estate tax.


What Are Property Taxes?

Property tax, on the other hand, is a broader term. It includes both real property (real estate) and personal property. Real property refers to land and buildings, while personal property can include movable assets such as vehicles, equipment, or even business machinery—depending on local laws.

For example, in some regions, a business owner may pay property taxes on office furniture or company vehicles, while a homeowner pays property tax on their land and house. In other areas, only real estate is taxed, making “property tax” and “real estate tax” essentially the same.


Real Estate Tax vs. Property Tax: The Key Difference

To put it simply:
  • All real estate taxes are property taxes, but
  • Not all property taxes are real estate taxes.
Think of real estate tax as a type of property tax. The main difference lies in what’s being taxed. Real estate tax applies only to immovable property, while property tax can apply to both movable and immovable assets, depending on the jurisdiction.


Why Understanding the Difference Matters

Knowing the distinction between these taxes can help you when budgeting for homeownership or investment. Real estate taxes are often a significant part of the annual costs of owning a property. They also affect your mortgage payments—since many lenders include property tax in monthly escrow payments.
For business owners, understanding property tax is equally important. You might owe taxes not only on the building you operate from but also on your business assets, depending on local tax regulations.


Final Thoughts

So, are real estate taxes the same as property taxes? Not exactly—but they’re closely connected. Real estate taxes are a type of property tax focused solely on land and permanent structures, while property taxes can include other types of assets.

When in doubt, it’s best to check with your local assessor’s office or a tax professional. Knowing how these taxes work helps you plan your finances wisely and avoid surprises during tax season. Whether you’re a homeowner or an investor, understanding your tax responsibilities is an essential part of successful real estate ownership.