Property Taxes and Tax Refunds

[KydLynx]

I know the average property tax is about 1% here in California. So on a 400-500k home, I would expect to pay about 4-5k a year in property tax.

For all you home owners out there, how much of this 4-5k do you get back when you do you taxes yearly? 15% 25% 50% ? Everyone says you get a pretty sweet tax credit for paying property taxes, but ive never been able to get a real number on what you get back.

Thanks!

 

[rsd]

I am no tax expert, but wouldn't that depend on all your other deductions too?

 

[KydLynx]

just looking for a % average so i can crunch some numbers.

if you need more specific info... average middle class unmarried male with no kids making between 40-70k a year.

 

[DrPizza]

depends on your tax bracket.
I'm no expert either, but, let's say you're paying 25%...
Then, you're getting back 25% of the 4k.
OR, rather, I should say, the amount you owe Uncle Sam for the year is reduced by $1k. If not enough was withheld, you may still end up owing.

Why don't you just go to taxact and fill out your taxes for free, first do it with some estimations, before getting down to the nitty-gritty, just to get some planning numbers.

 

[kranky]

DrPizza is correct IF you already itemize your deductions. Your taxable income is reduced by the $4K, and chances are you'd reduce your taxes by $1K. But that has nothing to do with how big your refund is, since we don't know how much you had withheld.

If you don't itemize already, the question can't be answered because we don't know if you have enough other deductions to fully gain the $1K tax savings.

If you didn't itemize in the past, you can do a rough estimate - add up what you pay in mortgage interest, state/local income taxes, property taxes and charitable donations. Compare that to what your standard deduction was last year and you'll have an idea how much your taxable income will be reduced by itemizing.