What are real estate taxes?

In India, the real estate taxes are also labelled as Property tax or land tax. The real estate tax is an annual payment of taxes to the municipal government by land owners and property owners. I am going to tell you about what are real estate taxes in detail in my answer. I hope you get an idea about all of this better from it.

Basically real estate taxes or property taxes are levied on tangible property such as residential and commercial land, property, buildings or premises. Here is what is included in real estate taxes:

• House tax

• Tax on improvements made on land

• Land tax or vacant land tax

The property tax or real estate tax is determined by the municipality by assessing property on an annual or semi annual basis.

The primary reason why real estate tax is collected is for the development of the local community and to provide facilities such as road repairs, maintenance of parks and public schools, etc.

The payment of real estate taxes is made by the real estate owners in the country. Each state and area has different way of calculating the property taxes based on various factors.

I hope you have a clear idea of what are real estate taxes now.