Hi there, new to this forum. I'm looking at buying a house to live in and see property taxes on one of the houses I'm considering is at $8300 for 2018. If I buy a house like this I am wondering about my tax situation. My thought is that money spent on annual property tax is deducted from the overall tax liability that I will have for the year, is that correct?

Thanks in advance for any replies!

Mike (moving to Missouri)

it depends; Property taxes are reported on Sch A of 1040. So, you must itemize your deductions on your return to claim the pty taxes and the total of all your itemized deductions should be more than your standard deduction you're entitled to claim for your filing status. Otherwise, claiming the deduction is probably not worth your while rules abound and those rules changed somewhat with the passage of the Tax Cuts and Jobs Act effective Jan.2018The property tax deduction isn't quite the same as it was in previous yearsThe Tax Cuts and Jobs Act also limits the amount of property taxes you can claim beginning in 2018, placing a $10kcap on state, local, and property taxes collectively.say, If you spend $6k on income taxes and $6k on property taxes, you no longer get a $12k deduction. You can claim $10k of these expenses, but the new law effectively forces you to leave $2k on the table, unclaimed.
The limit is only $5kif you're married but file a separate return