Is a School Tax a Real Estate Tax?

School taxes support the schools in your local school district. All residents pay school taxes in one way or another, regardless of whether you have one child, seven children or no children attending a public school in your district. The school tax is set by your local school board and assessed annually as part of the local taxes you pay.

The Relationship Between School Taxes and Property Taxes

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In many of the school districts, the school tax is a property tax based on the assessed value of your home or property. Though not the only way to fund a school system, school tax accounts for roughly half of all property tax revenue, according to the Lincoln Institute of Land Policy. So the more valuable your property is, the higher your school tax will be. Renters don't get away without paying a school tax, either. Property taxes are one of the factors that a landlord must consider when setting rent amounts, so the higher the school tax is, the more likely the rent will be higher.