Title Tag is very important. A title tag tells both users and search engines what the topic of a particular page is. It is used in HEAD section of the HTML.
If your website appears in search result pages you must seen the content of the title tag usually appear in the first line of the result.
Your Title must be accurate and unique.
Following is the example of title tag

I have searched Webmaster Tools in Google Search engine the following result has came.

Here Webmaster Tools is Title Tag and it appears in the first line of the SERP's result, So Title Tag is most important.
Following are good practice of Title Tag
(1) Accurately describe the Page' s Content: Try to give the title which can describe your post (your post content).
(2) Create unique title of each page of your website: Create a unique title of each page.
(3) Use Short and meaningful Title: Ignore lengthy title and try to give short and meaningful title.
Avoid that title which has no relation with your content also avoid "Untitled" pages
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