Can I deduct property (real estate) taxes, including my rental?
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.
When can’t I write off my property taxes?
However, you won't be able to deduct your property taxes if you're taking the Standard Deduction.
How much of my property taxes can I write off?
Even if you itemize, the State and Local Tax (SALT) deduction, which includes property tax, is capped at $40,000 ($20,000 for couples filing separately).
What if my property taxes are included in my mortgage payment?
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 (usually this is done twice a year, but it varies among jurisdictions).
That said, you should still enter your property taxes in TurboTax. Include property taxes paid at closing as well as the annual property tax paid to your assessor.
Which property taxes aren’t deductible?
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)
Can I deduct property taxes on my rental?
If you rent it out and don't live there yourself, you can claim property taxes on your rental as an expense against your rental income.
However, if you're renting out a portion of your own home, you're eligible for a prorated deduction for the portion of the home you live in, with the remainder written off as a rental expense.
Where do I include my rental property tax on my return?
Either way, enter the property tax where you enter all your other rental expenses. If you also live there, we'll calculate your personal deduction based on the portion you live in. Don't enter your property tax again in the Deductions & Credits section, as we've already taken care of that in the rental section.
Less common situations
Can I claim property taxes if I’m a member of a co-op?
If you're a member of a co-op, only claim your share of the amount paid by the corporation.
Can I claim property taxes if I co-own a property?
If you co-own the property with others, split the deduction by what each person paid.
