Author Topic: Are California Property Taxes Deductible on State taxes?  (Read 436 times)

goldenmustache2

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Are California Property Taxes Deductible on State taxes?
« on: February 09, 2021, 08:22:58 PM »
I am filling out my taxes in FreeTaxUSA - for my state taxes it is using itemized deduction and deducting both mortgage interest and property taxes from the California taxable income.  Both the mortgage interest (~26k) and property taxes (~13k) were fairly high, so I wanted to make sure this is correct as I was not expecting to be able to deduct those.  I was able to confirm from the California Franchise Tax Board that mortgage interest is indeed deductible (https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/march-2019/tax-deduction.html) but it does not mention property taxes.  Everything I search references federal taxes and SALT limits.

I suppose it would make sense if property taxes are deductible on state taxes, but wanted to confirm.  Thanks!

Sandi_k

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Re: Are California Property Taxes Deductible on State taxes?
« Reply #1 on: February 10, 2021, 10:46:22 AM »
Yes. But the CA deductability is different than that at the Fed level, given the max $10k deductability for State and Local Taxes (SALT).

goldenmustache2

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Re: Are California Property Taxes Deductible on State taxes?
« Reply #2 on: February 10, 2021, 10:49:53 AM »
Thanks...FreeTaxUSA is showing that I can deduct all of my property taxes, or at least I have not hit a limit yet.  That is a little perk I was not expecting when purchasing the house!

Sandi_k

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Re: Are California Property Taxes Deductible on State taxes?
« Reply #3 on: February 11, 2021, 10:52:12 AM »
Thanks...FreeTaxUSA is showing that I can deduct all of my property taxes, or at least I have not hit a limit yet.  That is a little perk I was not expecting when purchasing the house!

Correct - the SALT ceiling is for Feds, and CA still allows the full deduction.