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Can I deduct property (real estate) taxes?

SOLVEDby TurboTax6038Updated January 13, 2023

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.

However, you won't be able to deduct your property taxes if you're taking the Standard Deduction.

Even if you itemize, the State and Local Tax (SALT) deduction, which includes property tax, is capped at $10,000 ($5,000 for couples filing separately). This means taxpayers who live or own property in states with high property taxes may not be getting as big of a deduction.

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).

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.

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)
  • If you're a member of a co-op, only claim your share of the amount paid by the corporation
  • If you co-own the property with others, split the deduction by what each person paid

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