The property tax amount that you can deduct depends on a few things. The most important is probably whether you choose to itemize your taxes or go with the standard deduction on your annual taxes. This is because you can't claim property tax deductions if you claim the standard deduction. Deducting your property taxes is only an option if you itemize.
The Tax Cuts and Jobs Act of 2017 placed a cap on deducting taxes, including property taxes. The most you can deduct is $10,000 ($5,000 for those who are married filing separately). If your county recently did an assessment, and you now owe $12,000 in property taxes on your $400,000 house, you won't be able to deduct the full amount.
Or, maybe you only have $4,000 in property taxes this year, but you also owe $5,000 in income taxes and $2,000 in other federal taxes, for a total of $11,000. That $10,000 limit applies to all types of state and federal taxes combined, so you wouldn’t be able to deduct that last $1,000 from your taxable income.
A general rule for self-employed individuals and entrepreneurs is that itemizing is usually the way to save more on your taxes. But for some people, the standard deduction offers more savings. For 2022, the standard deduction is $12,950 for single filers and married couples filing separately, $25,900 for married couples filing jointly and $19,400 for heads of household.
The choice is yours on whether to choose the standard deduction vs. itemized deductions
. The only way to know which makes the most financial sense in your personal situation is by taking the time to do the math before you file your taxes.