Deductible taxes are those that are assessed on real property (land and permanently attached buildings). The taxes must be assessed in a like manner on all properties in a community, usually based on property value. The taxes can't be used to pay for specific improvements to only your home or street or neighborhood. (For example, if you pay $1 per $1000 of assessed value for general government services, and an extra $100 per year for sidewalk maintenance on your street, you can deduct the general taxes but not the sidewalk assessment, because it is not a general community benefit but benefits only certain specific properties.)
Real property taxes can be used to fund government services, local school systems, or other things. If you have separate town or county and school taxes, they are both deductible as long as they are assessed on your real property and all properties in the town, county or school district are assessed in like manner.
