Exempt property refers to real estate legally excused from paying property taxes. Common exemptions include government properties at all levels (federal buildings, provincial facilities, municipal properties), religious institutions (churches, synagogues, mosques, temples), registered charities (hospitals, universities, non-profits providing community services), and Indigenous reserve lands. Exemptions recognize that taxing government property would move money in circles, that religious and charitable organizations provide public benefits, and that certain properties serve special purposes. However, exempt properties still use municipal services—roads, water, fire protection—creating equity concerns where non-exempt property owners subsidize services to exempt lands. Some jurisdictions require payments in lieu of taxes from certain exempt entities. The amount of exempt property varies significantly by municipality—cities with major institutions, government complexes, or reserve lands may have substantial assessment removed from their tax base.