We all pay taxes on various things, yet most of us do not know the difference between real estate and property taxes. Real Estate refers to land and things hooked to the ground.
On the other hand, Property relates to something that can be moved and is not attached to the land. Therefore, Tax paid on Real Estate refers to as Real Estate Tax, and Tax paid on Property refers to as Property Tax.
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Key Differences –
Real Estate Tax –
- Real Estate Tax is paid on Real Estate. Real Estate means things that are in touch with the land and can not be moved.
- Real Estate Tax is paid monthly.
- Examples include Taxes on the house, flats, buildings, etc.
Property Tax –
- Property Tax is paid on Personal Property.
- Personal Property means things that are not connected with land and can be moved.
- Personal Property Tax is paid annually.
- Examples include Taxes on Cars, Technological appliances, Jewelry, etc.
Comparison Between Real Estate Tax And Property Tax
| Parameter | Real Estate Tax | Property Tax |
|---|---|---|
| Meaning | Real Estate Tax simply means a tax on Real Estate. | Property Tax simply means a tax on Personal Property. |
| Type of Property | Tax paid on Real Estate generally comes under Real Property. | Tax paid on Property generally comes under Personal or Private Property. |
| Payment | Real Estate Tax is paid monthly. | Property Tax is paid annually. |
| Example | Examples include Tax on land, buildings, flats, houses, etc. | Examples include Tax on Land, Personal Property, etc. |
Major Differences Between Real Estate Tax And Property Tax
To understand the differences between Real Estate Tax and Property Tax, it is essential to understand what Real Estate and Property are first.
What Exactly Are Real Estate and Property?
Real Estate refers to things connected to the land that can not be moved. For Example, Land, Buildings, Houses, Flats, etc.
The Property, also known as Personal Property (in this case), refers to things that are not connected to the land and can be moved easily. For example, Automobiles, Technological Appliances, Art, etc.
I/C
All real estate is Property, but not all properties are real etate –
Property is of four types: Real Property, Personal Property, Private Property, and Govt. Owned Property. Real Estate comes under Real Property, and when we say “Property Tax,” it generally means, Tax on Personal Property. Thus, all real estates are Properties, but not all properties are real estates.
What Exactly Is Real Estate Tax?
Real Estate Tax refers to Tax paid on Real Estate, which includes Tax on Land, Building, Flats, Houses, etc. Real Estate Tax is paid monthly.
What Exactly Is Property Tax?
Property or Personal Property tax refers to Taxes paid on personal Property, including land, automobiles, technological appliances, etc.
Contrast Between Real Estate Tax And Property Tax
Meaning
- Real Estate Tax – Real Estate Tax simply means Tax on Real Estate.
- Property Tax – Property Tax means Tax on Personal Property.
Type of Property
- Real Estate Tax: Tax paid on Real Estate generally comes under Real Property.
- Property Tax: Tax paid on Property generally comes under Personal or Private Property.
Paid
- Real Estate Tax – Real Estate Tax is paid monthly.
- Property Tax – Property Tax is paid annually.
Example
- Real Estate Tax: Examples include Tax on land, buildings, flats, houses, etc.
- Property Tax: Examples include Tax on Land, Personal Property, etc.
Conclusion
We all pay taxes on Real Estate and Property. The only difference between Real Estate Tax and Property Tax is that Real Estate Tax is paid on Real Estate, whereas Property Tax is paid on Property.
Frequently Asked Questions (FAQs)
Q1. What is meant by Real Estate?
Real Estate refers to things connected to the land that can not be moved.
Q2. What is meant by Personal Property?
Personal Property refers to the things that are not connected to the land and can be easily moved.
Q3. What are the differences between Real Estate Tax and Property Tax?
The significant differences between Real Estate Tax and Property Tax are –
1. Real Estate Tax is paid on Real Estate, while Property Tax is paid on privately owned things that can be moved and are not connected to the land.
2. Real Estate Tax is paid monthly, whereas Property Tax is paid annually.
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