What is the term for the tax assessed on real estate?

Property tax is the correct term for the tax assessed on real estate because it specifically targets the ownership of property, including land and the structures situated on it. Property taxes are levied by local governments, such as counties, cities, and school districts, and are typically used to fund essential public services such as education, infrastructure, and public safety. The assessment is generally based on the property's assessed value and can vary depending on local regulations.

Other tax types mentioned, such as capital gains tax, apply to profits made from the sale of property rather than the property itself. Sales tax is levied on the sale of goods and services, not on real estate ownership. Transfer tax is a tax imposed on the transfer of property title, which is separate from property taxes assessed annually based on ownership. Thus, the distinction aligns the correct answer with its specific scope and purpose in taxation.