Can I Write Off Property Tax?

Is Property Tax Tax Deductible for Your Business?

Property Tax is partially tax deductible for business purposes. You can only deduct the portion that is directly used for your business. Accurate tracking and documentation of your business usage percentage is essential.

Key Rules for Deducting Property Tax

For self-employed with home office: prorate by home office percentage. For everyone else: deductible on Schedule A as itemized deduction (subject to the SALT cap: $40,000 in 2025 / $40,400 in 2026 under OBBBA, phasing down above $500k MAGI).

Requirements to Claim This Deduction

• Home office: prorate by square footage %
• Otherwise: Schedule A itemized deduction
• Subject to $10,000 SALT cap

How to Document Property Tax for Tax Purposes

Proper documentation is critical for any business deduction. For property tax, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 587; IRC § 164. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.