U.S. · Tax forms
Schedule A line 5b, real estate taxes.
What is deductible, what to strip out of the bill, and how it feeds line 5d.
Line 5b is the state and local tax you paid on real estate you own that was not used for business, but only if it is assessed uniformly at a like rate on all real property in the community and used for general governmental purposes. Strip out service charges and improvement assessments. 5b is then added on line 5d with 5a and 5c.
Look up a Schedule A line
Result
Schedule A line 5b on the 2025 form
The 2025 form prints this line as: “State and local real estate taxes (see instructions).”
| Line | Meaning | What the IRS says |
|---|---|---|
| Line 5a | Income taxes or general sales taxes | Choose one; check the box if you elect sales taxes |
| Line 5b | State and local real estate taxes | Tax on real estate you own, not used for business, assessed uniformly at a like rate |
| Line 5c | State and local personal property taxes | Only if based on value alone and imposed yearly |
| Line 5d | Add lines 5a through 5c | Total of the three |
| Line 5e | Smaller of line 5d or the cap | $40,000 ($20,000 if married filing separately), subject to the income rules |
| Not on 5b | Itemized service charges | For example a monthly trash charge or a charge per 1,000 gallons of water |
| Not on 5b | Charges that raise property value | For example an assessment to build a new sidewalk; added to basis. A charge only to maintain an existing facility is deductible |
| Escrow | Mortgage payments that include taxes | Include only what the mortgage company actually paid the taxing authority in 2025 |
What belongs on line 5b
Enter the state and local taxes you paid on real estate you own that was not used for business, but only if the taxes are assessed uniformly at a like rate on all real property throughout the community, and the proceeds are used for general community or governmental purposes. Pub. 530 explains the deductions homeowners can take. Foreign real estate taxes do not belong here.
Read the tax bill
The instructions say to look at your real estate tax bill to decide whether non-deductible itemized charges are included, and to ask the taxing authority or lender for a copy if you do not have one. Itemized charges for services to specific property or persons, and charges for improvements that tend to increase the value of your property, are left out. If your mortgage payment includes real estate taxes, include only the amount the lender actually paid to the taxing authority in 2025.
Timing, refunds and home sales
Only taxes paid in 2025 and assessed before 2026 can be deducted for 2025, so prepaying next year’s bill does not work. A refund or rebate in 2025 of real estate tax you paid in 2025 reduces the deduction. If you sold your home in 2025, tax charged to the buyer appears on the settlement statement and in box 6 of Form 1099-S and is treated as a refund of real estate taxes, while taxes you paid at closing should also be on the settlement statement.
Worked example
Dana (made-up) has a $6,400 county bill that includes a $120 trash collection charge and a $300 assessment for a new sidewalk. Both are removed, so line 5b is $5,980. With $4,100 of income tax on 5a and no personal property tax, line 5d is $10,080, and line 5e takes the smaller of that or the cap in the instructions.
More Schedule A line pages
Other pages in this set: Schedule A line 5e, Schedule A line 7, Schedule A line 11, Schedule A line 16.
Sources
- Instructions for Schedule A (Form 1040) (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Schedule A (Form 1040) 2025: the printed line wording and arithmetic on the form. Read November 2, 2026.
Tax year 2025 edition (returns filed in 2026). Line numbers, dollar limits and wording are those printed in the 2025 form and instructions and change by year. Names in worked examples are made up.
Frequently asked questions
What goes on Schedule A line 5b?
State and local taxes you paid on real estate you own that was not used for business, if they are assessed uniformly at a like rate on all real property and used for general governmental purposes.
Are trash or water charges deductible on line 5b?
No. Itemized charges for services to specific property or persons, such as a monthly trash charge, are not deductible as real estate taxes.
How do escrowed taxes work?
If your mortgage payments include real estate taxes, include only the amount the mortgage company actually paid to the taxing authority in 2025.
Can I deduct next year’s property tax if I prepay it?
No. Only taxes paid in 2025 and assessed before 2026 can be deducted for 2025. State or local law decides when a tax is assessed.
What if I received a real estate tax refund?
A 2025 refund or rebate of 2025 real estate tax reduces your deduction. A refund of an earlier year’s tax may be income on Schedule 1, line 8z, if the deduction reduced your tax.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.