Real Estate Tax is a tax imposed on property owners based on the value of their real estate. This tax is typically calculated as a percentage of the property's assessed value, which is determined by local government authorities. The revenue generated from real estate taxes is often used to fund essential services such as schools, roads, and public safety. Property owners usually receive a tax bill annually, and failure to pay can result in penalties or even foreclosure. Rates and regulations can vary significantly by location, making it important for property owners to understand their local tax laws and obligations.