Property Tax Deduction

Property Tax Deduction

The Property Tax Deduction is an income tax deduction that allows property owners to deduct the amount they pay in property taxes on their primary residence and sometimes on other real estate properties. This deduction is typically available to taxpayers who itemize their deductions on their federal income tax return rather than taking the standard deduction.

For example, if a homeowner pays $3,000 in property taxes during the year, they may deduct that amount from their taxable income, potentially lowering their overall tax liability. However, it’s important to note that under the Tax Cuts and Jobs Act, the total deduction for state and local taxes, including property taxes, is capped at $10,000 for single filers and $20,000 for married couples filing jointly.