Real Estate Glossary > P > Property Tax Definition

The tax paid by homeowners to the government determined by an assessment The value assigned to a home based on a comparison of the prices of similar homes that recently sold in the neighborhood. . Homeowners pay this tax annually, semi-annually or as part of a monthly mortgage payment Principal, interest, taxes and insurance are the four items that make up your total monthly housing payment. . Depending on when a buyer actually closes on his loan, some of this property tax may be due at the time of closing.