Full exemption means property is completely exempt from paying property taxes, as opposed to partial exemptions that reduce but don't eliminate tax obligations. Properties typically receiving full exemption include government buildings (federal, provincial, municipal, Indigenous), places of worship (churches, synagogues, mosques, temples), registered charities, educational institutions, hospitals, and cemeteries. Exemption recognizes these properties serve public purposes or shouldn't be taxed due to governmental sovereignty. However, exempt properties still use municipal services—roads, water, fire protection—creating a tax base issue for municipalities with significant exempt property. Some jurisdictions require certain exempt entities to make payments in lieu of taxes or negotiate service agreements. Determining which properties qualify for full exemption and whether exemptions remain justified generates ongoing policy debate, particularly as some traditionally exempt entities have evolved in ways that blur distinctions with taxable activities.