Checkmark iconCan I Write This Off?

Can I write off property taxes?

TL;DR

Yes, property taxes are generally deductible on your federal income tax return, but there are certain limitations.

Detailed Answer

Property taxes are deductible on your federal income tax return, but only if they are imposed on you and if they are for the benefit of the general public. They must also be based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority. However, there are limitations. The Tax Cuts and Jobs Act of 2017 capped the total state and local tax (SALT) deduction, which includes property tax, at $10,000 ($5,000 for married filing separately). This means that if your total state and local taxes, including property tax, exceed this amount, you will not be able to deduct the full amount. Also, you must itemize deductions to claim property taxes on your tax return. If you take the standard deduction, you cannot deduct property taxes.

Where to Put It on the Tax Form

Schedule A, Itemized Deductions, Line 5b

Real World Example

For example, if you paid $5,000 in property taxes on your home and $2,000 in state income taxes, you could deduct $7,000 on your federal income tax return, assuming you itemize deductions.

Audit Risk & Documentation Tips

The risk of audit for this deduction is relatively low, but it's always a good idea to keep documentation. Keep your property tax bills and proof of payment in case of an audit.

IRS Reference

IRS Publication 530, Tax Information for Homeowners; IRS Publication 17, Your Federal Income Tax; Tax Cuts and Jobs Act of 2017

Relevant Industries

HomeownersReal EstateSmall BusinessFreelancers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 3, 2025

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