The property tax deduction allows homeowners to deduct the state and local property taxes they pay on their home, which can help lower their taxable income.
This deduction is part of the broader SALT (State and Local Tax) deduction, which is capped at $10,000 per year ($5,000 if married filing separately).
You can only claim it if you itemize deductions, not if you take the standard deduction. The deductible amount includes the property taxes you paid on your primary residence and, in some cases, a second home—but it does not include taxes on rental properties (those are deducted separately as business expenses).
Escrow payments count only the portion actually paid to the county or taxing authority; you can deduct overdue or prepaid taxes only if these taxes were actually paid during the tax year.
Renters do not qualify for this deduction. The property tax deduction is most beneficial for homeowners with higher property taxes whose total itemized deductions exceed the standard deduction, helping them reduce their overall tax burden.
For more information click in this link: IRS.gov