Property Tax Deduction
Definition - What does Property Tax Deduction mean?
A property tax deduction is a deduction that can be taken off from one's income tax if one has paid a property tax within the tax year. In other words, the amount of property taxes that one pays can be subtracted from one's gross yearly income at the end of the year for taxation purposes.
Justipedia explains Property Tax Deduction
An example of a property tax deduction would be a man who makes $200,000 a year and pays $10,000 a year in property taxes. Because property taxes are generally deductible, this means that the man would only be taxed for a personal income of $190,000 a year. The property tax deduction creates incentive for people to buy homes. This is because even though homeowners still get taxed on their homes, they get taxed on a smaller overall income for income tax purposes.