Educational institution exemption refers to the property tax exemption that typically applies to schools, colleges, universities, and related educational facilities. Public schools are generally exempt from municipal property taxes under provincial legislation, as are universities and colleges. This exemption recognizes education as a public good and avoids the circular flow of one government taxing another's facilities. The exemption creates significant impacts in communities with large educational campuses—universities and colleges occupy valuable land that generates no property tax revenue while requiring municipal services like roads, water, and emergency response. Some jurisdictions require educational institutions to make payments in lieu of taxes or negotiate service agreements. Private schools' exemption status varies by province and depends on whether they meet non-profit criteria.