Are real estate taxes deductible?


If you own real estate and live in an area with high property taxes, there’s a good chance that your federal income taxes are going to be higher than they could otherwise be. If that’s the case, then it makes sense to find ways to reduce those costs. That’s where this article comes in: we’ll show you how to deduct all or part of your real estate taxes from your taxable income when you file federal income tax returns!

Real estate taxes:

Real estate taxes are actually a type of personal property tax and are some of the most frustrating for taxpayers. They can be deducted from your taxable income when you file federal income tax returns.

Real estate taxes are assessed at the county level by the County Assessor’s Office. The assessor determines how much property will be subject to real estate taxes based on its assessed value or market value and other factors such as sales price comparison data or appraisals done by third parties (i.e., not an actual home inspection). The amount owed is then placed onto a bill sent out annually in July/August no matter where you live or whether you own any real estate within that county’s borders—in other words, it doesn’t matter if there is only one house on your street with two mortgages attached: both sides must pay their fair share!

Real estate taxes in the USA:

In the United States, property taxes are a percentage of your home’s assessed value. The assessed value is determined by the government and can be either a flat rate or based on market value.

When you own real estate, you must pay the state and local government’s property tax as a percentage of your home’s assessed value. The amount of this charge may vary from county to county based on what other properties in that area have been assessed at (the higher their values, the more they will have paid).

Real estate taxes are deductible?

Yes, real estate taxes are deductible when you file your federal income tax return–as long as you itemize them on Schedule A instead of taking the standard deduction.

Real estate taxes are personal property taxes. They’re not sales or use taxes, which are generally not deductible from taxable income. Instead, they’re a one-time charge for owning or leasing property (like homes) and include any annual fees associated with that ownership or lease agreement such as homeowner’s association fees, condominium fees and mortgage interest charges. The amount of these personal property tax deductions can vary greatly depending on where in the U.S., state or territory that your home is located; some states have higher rates than others so make sure to check up on this before making any purchases!

High property Real Estate taxes:

If you live in an area with high property taxes, this could save you considerable money on your federal income tax bill. If you have a mortgage, it’s possible to itemize deductions (deducting expenses) instead of taking the standard deduction—which can save thousands!

Calculate how much extra money could be saved by claiming these deductions on your return:

  • First-time homebuyers: If someone buys their first house after 2008 and has not owned another place for at least three years before buying their new home, they are eligible for a tax break called the first-time homebuyer credit. This credit phases out when combined with other credits or if adjusted gross income exceeds $75,000 ($150,000 if married filing jointly). For example: John buys his first house in 2017 and qualifies for this deduction because he didn’t own any other place before then; however John’s adjusted gross income is $100k so he won’t get any edge from claiming this itemized deduction since he doesn’t qualify for any other benefits such as depreciation on his purchase price or interest paid during construction/renovation period before moving into new property

You can deduct all or part of your real estate taxes from your taxable income when you file federal income tax returns!

If you itemize, it’s a little more complicated. You must have incurred at least one deductible expense in order to claim the deduction. For example, if your mortgage payment is $1,000 per month and includes interest and property taxes on the house that cost $500 per year (which total $750), then those payments would be deductible since they’re related to real estate taxes. But if there were no other expenses beyond what was required for mortgage payments—like utilities or groceries—then those would not qualify as “deductible” expenses under IRS guidelines because they aren’t directly related to paying off any specific bills associated with owning an asset such as land/property itself; instead these types of things go towards covering basic necessities like electricity bills etcetera which aren’t specifically associated with owning something like houses themselves!


The bottom line is that if you live in an expensive area with high property taxes, your deduction will save you money. It’s also worth noting that if you have a mortgage and live in an expensive area, then your mortgage interest can also be claimed as a deduction—another way to save on federal income tax.

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