Intro:

Every spring, right about when the tax deadline looms, I start getting the same question: “Can I deduct my property taxes?” It’s a fair one — especially around Columbus, where homeowners see noticeable jumps in valuations. Let’s unpack what’s deductible, what’s changed, and how to make sure you’re not leaving money on the table.

1. Yes — But There’s a Cap

You can deduct state and local property taxes on your federal return, but there’s a limit: currently $10,000 total for all state and local taxes combined (including income and sales tax). So if you’re in high-tax areas like Powell or Upper Arlington, that cap can come into play.

2. You Must Itemize, Not Take the Standard Deduction

To claim the deduction, you need to itemize instead of taking the standard deduction. For many Central Ohio homeowners, especially after the 2018 tax law changes, the standard deduction is now higher — so it’s worth asking your tax pro which route saves you more.

3. Mortgage Escrow Payments Don’t Count Yet

If your lender collects taxes monthly in escrow, remember: you can only deduct what’s actually paid to the county that year — not what you’ve contributed into escrow. It’s an easy detail to overlook.

4. Closing Costs Have Some Nuance

When buying or selling, a portion of your property taxes gets prorated at closing. That portion may be deductible, but timing matters. Always keep your final settlement statement and check with your CPA to make sure you report it correctly.

5. Your Realtor Isn’t Your Tax Preparer — But Knows When to Flag It

I’m not a tax advisor (and neither are most agents), but a good Realtor understands which homeownership expenses have tax implications. When you buy or sell with me, we’ll make sure you know exactly what documents to save for your accountant.

CTA:

👉 Buying or selling in Columbus, Powell, or Dublin this year? Let’s talk strategy — and make sure your home decisions fit into your financial and tax goals.

[Contact Patrick Murphy, Realtor — Columbus, Powell & Dublin Expert]