---
title: "Property tax — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/property-tax/
---

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Closing, title & notary[All terms starting with P](/glossary/#letter-P)

# Property tax

An annual tax assessed by local government on real property, usually collected monthly through escrow.

Property tax is levied by local taxing entities based on an assessed value and the applicable rates. It is prorated between buyer and seller at closing and, for most mortgages, collected monthly into an escrow account.

Assessments and rates change, so a payment based on the seller’s tax figure can shift after the first assessment following a sale. Owner-occupied properties may qualify for exemptions that an investment property does not.

## Put a number on it

This term feeds the calculators below.

- [Monthly Cost of Living CalculatorEstimate your monthly living expenses, housing costs, transportation, utilities, food, insurance, and more with Ondo’s interactive cost of living calculator.](/calculators/cost-of-living/)
- [Mortgage Payment CalculatorEstimate monthly mortgage payments with taxes, insurance, and PMI.](/calculators/mortgage-payment/)

## Related terms

- [Escrow account (impounds)An account your servicer uses to collect and pay your property taxes and homeowners insurance alongside the mortgage payment.](/glossary/escrow-account/)
- [PITIPrincipal, Interest, Taxes and Insurance, the four parts of a typical monthly mortgage payment.](/glossary/piti/)
- [PrepaidsMoney collected at closing to fund your own future taxes and insurance, plus interest from closing to month end.](/glossary/prepaids/)
- [Operating expensesThe recurring costs of running a property: taxes, insurance, management, maintenance, and owner-paid utilities.](/glossary/operating-expenses/)

## Go deeper

- [Understanding property taxes in Utah](/blog/understanding-property-taxes-utah/)

## More in Closing, title & notary

- [Acknowledgment](/glossary/notary-acknowledgment/)
- [Apostille](/glossary/apostille/)
- [Condominium](/glossary/condo/)
- [Deed](/glossary/deed/)
- [Escrow officer (settlement agent)](/glossary/escrow-officer/)
- [Homeowners insurance](/glossary/homeowners-insurance/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)