A property tax is a tax assessed on real estate, usually based on the value of the property you own and usually by your local or municipal government. Municipalities will normally use property taxes to pay for roads, schools, libraries, snow removal and other municipal services.
Generally speaking, the amount of your property tax is determined by multiplying the property tax rate by the current market value of your property. Whether you qualify for any exemptions will also affect your property tax bill. Be sure to contact a tax professional for any questions regarding exemptions.