The word “property taxes” typically refers to real estate taxes levied against your home or property. However, an individual can own a variety of property categories, each of which is taxed differently.

What are Real Estate Taxes?

Real estate taxes are identical to real property taxes. They are levied on the majority of properties in America and paid to state and municipal governments. Real estate taxes (sometimes known as real property taxes) are primarily used to fund local and governmental services.

Personal Property Tax

There is a tax on personal property known as the “personal property tax,” but it is not the same. Personal property refers to moveable goods, as opposed to fixed real property.

Personal Property Tax against Real Estate Tax

While real estate taxes only apply to real property such as a condo, home, or rental property, personal property taxes apply to any tangible and movable personal property, including transportation vehicles (such as cars, planes, boats, trailers, or mobile homes).

The types of personal property that are subject to personal property tax differ by jurisdiction. In some circumstances, a mobile home may be deemed real property rather than personal property.

Intangible personal property is exempt from personal property tax; nonetheless, some jurisdictions may tax certain business personal property goods but not the comparable personal use items.