There are 3 main types of property taxes: federal, state, and local. The first two are imposed by the federal government, while the states impose local property taxes. If you’re a homeowner, you have to pay real estate taxes for the properties you own. What is Real Estate Tax? Real estate taxes are an essential part of your rental property income. In the United States, the federal government issues a tax on the real estate called real property tax (RPT). This tax is based on the market value of the real estate minus any improvements. Real property tax is based on the property’s value – the market value – and…