Real estate taxes (also called "property taxes") for your main home, vacation home, or land are an allowable deduction if they're based on the assessed value of the property and the property is for your own personal use. Whether you'll actually get a deduction on your taxes is another story, as several changes enacted by tax reform have impacted this deduction.
Don't include:
- Taxes you paid on property you don't own
- Taxes for rental or business property (instead of entering them in the Deductions & Credits section, you'll claim them as expenses when you get to the rental or business section)
- Taxes for local improvements, like streets or sidewalks
- School taxes, unless they're based on the assessed value of your property
- Taxes for trash collection, libraries, or anything else not directly related to assessed property value
- Taxes on foreign property (tax reform has suspended this deduction for tax years 2018 through 2025)
Other tidbits:
- If your property taxes are included in your monthly mortgage bill, you can deduct them after your lender has paid the tax to the assessor on your behalf. Contact your lender to find out when they submit your property tax payments (frequently this is done twice a year, but it varies among jurisdictions).
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