Property Tax Deduction
What is 'Property Tax Deduction'
State and local property taxes that are generally deductible from United States federal income taxes. These include real estate taxes, which include any state, local or foreign taxes that are imposed for the welfare of the general public. Deductible real estate taxes generally do not include taxes charged for home renovations or for services like trash collection.
BREAKING DOWN 'Property Tax Deduction'
From time to time there is talk of eliminating the federal property tax deduction. Some of the arguments for doing so are that it, along with federal mortgage interest tax deduction, discriminates against renters and encourages people to take on more debt. Proponents of retaining the property tax deduction say that it promotes homeownership.