Yes—generally, if you itemize deductions on your 2025 federal individual income tax return. Qualifying state and local income taxes and qualifying real estate taxes are entered on separate lines of Schedule A, but both are part of the same state and local tax (SALT) deduction and share one overall limit. The fact that the amounts appear on different lines does not give each category a separate maximum.
What the deduction allows
For tax year 2025, an individual taxpayer who itemizes can generally claim two relevant types of taxes together:
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- State and local income taxes, generally reported on Schedule A, line 5a.
- Qualifying state and local real estate taxes on property that is not being deducted through a business or rental activity, generally reported on Schedule A, line 5b.
These amounts are combined with other eligible state and local taxes under the SALT limitation. You do not receive one full cap for income taxes and another full cap for property taxes.
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How to report both taxes on Schedule A
State income tax: Schedule A line 5a
Enter eligible state and local income taxes on line 5a. The instructions also allow an election to deduct general sales taxes instead of state and local income taxes. That is an alternative calculation, not an additional deduction: you cannot claim both the income-tax amount and a separate general-sales-tax amount on line 5a.
Use the amount that is attributable to the year and payment rules applicable to your return. A state income-tax withholding amount, estimated payment or other payment may require reconciliation with your tax records, refunds or credits. Keep the relevant wage statements, payment confirmations and state tax records in case the amount needs to be substantiated.
Real estate tax: Schedule A line 5b
Qualifying real estate taxes on property you own and pay as a personal expense generally go on line 5b. The tax normally must be imposed by a state or local government and be based on the assessed value of the property or otherwise satisfy the federal definition of a deductible real estate tax.
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Why separate lines do not mean separate limits
Schedule A separates line 5a and line 5b so the IRS can identify the type of tax. The amounts then flow into the combined SALT calculation. Adding an income-tax amount and a property-tax amount above the applicable limit does not create a second deduction; the excess is disallowed on Schedule A.
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The 2025 SALT limits
For 2025, the general combined limit for state and local income, sales and property taxes is $40,000 for most filing statuses. For a taxpayer filing married filing separately, the general limit is $20,000. The limit is not automatically available in full to every taxpayer.
| Filing situation | General 2025 SALT limit | Modified-AGI threshold for reduction | Lowest limit after reduction |
|---|---|---|---|
| Most filing statuses | $40,000 | Over $500,000 | $10,000 |
| Married filing separately | $20,000 | Over $250,000 | $5,000 |
When modified adjusted gross income exceeds the applicable threshold, the 2025 Schedule A instructions reduce the general limit under a worksheet calculation. The reduction does not lower the limit below $10,000, or below $5,000 for married filing separately. The worksheet can be important when income is near or above the threshold, and special conditions in the instructions may change how the calculation works.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsThese are combined limits. For example, if a taxpayer has $8,000 of eligible state income tax and $12,000 of qualifying real estate tax, the total SALT amount is $20,000 before applying the itemizing comparison and any income-based limitation. If the same taxpayer has $35,000 of eligible state income tax and $20,000 of property tax, the $55,000 total is still tested against one applicable SALT limit rather than two separate limits.
You must itemize to claim the personal Schedule A deduction
Property taxes and state income taxes do not produce a separate deduction when you take the standard deduction. To claim them as personal deductions, complete Schedule A and compare your allowable itemized deductions with the standard deduction for your filing status and tax year. IRS Topic 501 and the Schedule A overview state that, in most cases, federal income tax is lower when you use whichever deduction is larger.
The comparison includes all of your allowable itemized deductions—not just SALT. Depending on your facts, that total may include eligible mortgage interest, charitable contributions and other categories subject to their own rules and limits. The SALT amount that survives the $40,000 or $20,000 limitation is only one component of the itemized total.
A practical itemizing decision
- Gather the state and local income-tax amounts you are allowed to claim and the real estate taxes actually paid during 2025.
- Determine whether the property taxes are personal, business or rental expenses and remove amounts that belong on another tax form.
- Combine eligible income, sales (if elected instead of income tax) and property taxes for the SALT calculation.
- Apply the applicable 2025 SALT limit and, if required, the modified-AGI worksheet.
- Add the allowed SALT amount to your other allowable itemized deductions.
- Compare the resulting itemized total with the standard deduction for your filing status and use the larger allowable deduction, unless a special rule applies.
A tax-preparation program may perform the arithmetic, but you still need accurate payment records and the correct tax-year settings. If you are close to the standard-deduction threshold, a small change in a payment, refund or excluded property charge can change whether itemizing is worthwhile.
Which property charges qualify—and which do not
A bill from a county, city or other local authority can contain several different charges. The label “property tax” alone does not make every line deductible as real estate tax.
Generally eligible real estate taxes
- A tax imposed on real property you own by a state or local government.
- An amount that is based on the property’s assessed value or otherwise meets the federal real-estate-tax definition.
- An amount paid during the year, either directly or through a mortgage escrow account.
Common charges that are not deductible as real estate taxes
- Fees for services to the property or to its occupants, such as trash collection or water usage charges.
- Assessments for improvements that increase the value of the property, such as a special assessment for a new sidewalk or similar capital project.
- Amounts that are actually business or rental expenses and therefore belong on the return for that activity rather than as a personal Schedule A deduction.
Some maintenance-related assessments can receive different treatment from value-increasing improvements. Review the assessment notice and the applicable IRS instructions instead of assuming that every special assessment has the same result.
Payment timing, escrow and refunds
Use the year of payment
For real estate taxes, the usual rule is that you deduct the amount paid during the tax year. A bill dated in 2025 is not necessarily a 2025 deduction if it was not paid until 2026. Conversely, a payment made in 2025 can generally be relevant to the 2025 return even if the taxing authority describes the bill by a different assessment year.
Mortgage escrow payments
Escrow deposits are not the same as tax payments to the government. If your mortgage company sends $6,000 to the taxing authority in 2025 after collecting that money from you, the amount actually disbursed is the figure generally used for the 2025 real-estate-tax deduction. Your annual mortgage statement or the servicer’s escrow history can help document the disbursement.
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Refunds, rebates and later adjustments
If you receive a refund, rebate or other repayment of real estate taxes, additional rules can apply. A later refund may require an adjustment depending on whether the original tax benefit reduced your federal tax. Keep the refund notice with the original payment records and follow the instructions for the year in which the adjustment occurs.
When property taxes belong somewhere other than Schedule A
Property use matters. A property used in a trade or business or held as a rental may generate a tax expense that is reported with that activity rather than as a personal itemized deduction. The same payment should not be deducted twice—once on Schedule A and again as a business or rental expense.
If a property is partly personal and partly used for business or rental purposes, allocation may be required. The available federal guidance does not determine an individual allocation without facts such as ownership, use, dates and the records supporting each portion. A taxpayer with mixed use, multiple owners or a change in use during the year should use the instructions for the relevant business or rental form.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Examples of the combined-limit calculation
Example 1: Total below the general limit
A taxpayer who is not married filing separately pays $7,500 in eligible state income tax and $9,500 in qualifying real estate tax during 2025. The combined SALT amount is $17,000. If the taxpayer is not subject to an income-based reduction and the taxes are otherwise allowable, the full $17,000 enters the itemized-deduction calculation. The taxpayer must still compare total itemized deductions with the standard deduction.
Example 2: Total above the general limit
Another taxpayer pays $24,000 in eligible state income tax and $22,000 in qualifying property tax. The combined amount is $46,000. For most filing statuses, the 2025 general limit is $40,000, so no more than the applicable SALT limit can be included before considering the rest of the itemized-deduction calculation. The two Schedule A lines do not permit $40,000 on one line plus another $40,000 on the other.
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Example 3: Married filing separately
A married-filing-separately taxpayer has $13,000 of eligible state income tax and $10,000 of qualifying property tax. The combined amount is $23,000, but the general 2025 limit for that filing status is $20,000, subject to the reduction rules and floor described in the Schedule A instructions. The filing status must be used when selecting the correct worksheet and limit.
Records to keep before filing
- State wage statements, estimated-tax confirmations and records of state payments.
- The property-tax bill showing which charges are taxes and which are service fees or assessments.
- Mortgage-servicer escrow statements showing the date and amount paid to the taxing authority.
- Proof of payment, including canceled checks, electronic confirmations or account statements.
- Refund or rebate notices from a state or local tax authority.
- Documentation of business or rental use if any portion of the property tax is reported outside Schedule A.
Retain enough detail to show both the amount and the nature of each charge. A single annual bill may need to be separated into deductible tax, nondeductible services, improvement assessments and amounts allocated to another activity.
Questions that can change the result
Does owning more than one property create more than one SALT cap?
No. Multiple qualifying properties can increase the total real estate taxes paid, but the personal Schedule A amounts still go into the same applicable SALT limit.
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No. On Schedule A line 5a, general sales tax is an alternative to state and local income tax. You choose the permitted option; you do not claim both alternatives as separate line 5a deductions.
Can I deduct a property tax bill paid after the year ended?
Generally, the relevant year is the year the tax was paid. A bill issued in one year and paid in another may belong to the later payment year, subject to the applicable rules and your method of payment.
What if my income exceeds the SALT threshold?
Use the 2025 Schedule A worksheet because the general limit is reduced above $500,000 of modified adjusted gross income for most filing statuses and above $250,000 for married filing separately. The reduction has a stated floor of $10,000 or $5,000, respectively, but the exact calculation depends on the instructions and your filing facts.
Can I claim these taxes if I do not itemize?
Not as personal Schedule A deductions. The taxes may still be relevant to a business or rental activity when the applicable rules place them there, but that is a different reporting treatment from itemizing personal deductions.
Bottom line for a 2025 federal return
You can generally deduct qualifying property taxes and state income taxes on the same federal return when you itemize. Report state and local income tax on Schedule A line 5a and qualifying real estate tax on line 5b, then combine them under the 2025 SALT limit—generally $40,000, or $20,000 for married filing separately, with reductions above the applicable modified-AGI threshold. Verify that each property charge is a tax rather than a service fee or value-increasing assessment, count real estate taxes paid during the year (including qualifying escrow payments), and compare your allowable itemized total with the standard deduction.
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