| Income Tax Information |
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If you file a federal income tax return and you itemize deductions using Schedule A, you may deduct the amount of property taxes the department paid on your behalf for that year.
Deferred property taxes are deductible on an individual income tax return only in the year that the taxes were paid, not in the year the deferral account receives full payment.
Interest on the deferred property taxes is deductible as home mortgage interest in the year the interest is paid.
- Any payment amount applied to accrued interest is deductible in that year.
- If you pay off your deferral account, the total amount of accrued interest paid is deductible for the year in which the account receives full payment.
If you file a personal income tax return and itemize your deductions, contact the deferral unit to request the amount of interest paid for the current year.
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