The Feudal System was set in the belief that the land belonged to God, and the kings, who ruled by Divine Right, managed the land as emissaries as they saw fit. This land was then micro-managed by nobles and/or knights, who would in turn manage smaller areas of land in exchange for military services. Those who lived on this land were in allegiance to the king and their immediate superiors, the nobles and knights.
Everyone was expected to pay for the land they lived and worked on by way of taxes, working, recruitment into military services