A property tax receipt is an official document from your local tax authority confirming your payment of property taxes. It includes details about your property, the tax amount, payment date, and jurisdiction. Keeping these receipts is important for responsible property ownership.
What Do Property Tax Receipts Include?
Property tax receipts typically contain detailed information about your property and payment.
Receipt Category | What It Means |
|---|---|
Account number/property ID | A unique identifier assigned by the county appraisal district to track your specific property |
Property address and legal description | The physical address and official legal description of your property |
Assessed value | The value of your property as determined by your local tax authority for taxation purposes |
Tax amount | The total tax charged for the property, often broken down by individual taxing jurisdictions |
Payment information | The date of payment, amount paid, and payment method |
Tax year | The specific year for which the taxes were paid |
Taxing jurisdictions | A list of all entities collecting taxes on your property (school districts, municipalities, counties, special districts) |
Tax rates | The rates applied by each taxing jurisdiction to calculate your total tax bill |
Receipt number | A unique identifier for your specific payment transaction |
Payment status | Indication that the payment has been processed and received |
Why Do You Need Property Tax Receipts?
1. Proof of payment
Property tax receipts prove you've paid your taxes. This documentation is crucial if there is ever a dispute with tax authorities regarding whether your payment was received and processed correctly.
2. Tax deduction documentation
If you itemize deductions on your federal income tax return, property taxes on your personal residence can be deductible (subject to limitations). Your property tax receipt supports these deductions if the IRS audits you.
3. Escrow account verification
For homeowners with mortgage escrow accounts, property tax receipts help verify that your mortgage servicer paid the correct amount from your escrow account. Comparing your tax receipt against your escrow statement can help identify any discrepancies.
4. Historical record for property ownership
Maintaining property tax receipts creates a historical record of your property ownership and tax payments. This documentation can be valuable when selling your property or during estate planning.
5. Monitoring tax changes
By comparing tax receipts year over year, you can track changes in your property's assessed value and tax rates. This information helps you understand how your tax burden is changing and may provide grounds for a property tax appeal if you believe your assessment is too high.
6. Rental property expense records
For investment property owners, tax receipts aid accurate record-keeping of business expenses. These receipts document one of your largest expenses as a landlord and support the deductions you claim on your tax returns.
7. Required documentation for appeals
Seventy-eight percent of U.S. homeowners are unaware they can appeal their property taxes. If you decide to appeal your property taxes, your tax receipts provide crucial information about your property's assessment history and tax rates. Your receipts show the assessed value history, which you'll need in order to build a case for lower property taxes. Ownwell can help you appeal your property taxes and save money.
8. Exemption applications and verification
Property tax receipts are valuable when applying for or verifying property tax exemptions. Many homeowners don't realize they qualify for exemptions that could significantly lower their tax bills.
Ownwell can assist you in identifying and applying for property tax exemptions, even up to two years retroactively in many jurisdictions.
How To Obtain Your Property Tax Receipt
Many tax authorities offer online portals to view and print your property tax receipts. You can also contact your local tax office for digital copies via email or visit in person for physical copies. Or you can submit a written request with your property information to receive a copy by mail.
How Long Should You Keep Property Tax Receipts?
Financial experts generally recommend keeping property tax receipts for at least seven years, which aligns with the IRS statute of limitations for audits. If you've owned the property for many years, maintaining a complete history of your tax payments can help you with property sale documentation and estate planning.
Managing Your Property Tax Documents
Effective management of your property tax documents, including receipts, is a crucial aspect of responsible property ownership. Ownwell helps property owners understand their tax obligations and identify opportunities for savings through proper documentation, assessment monitoring, and filing for exemptions you may have missed.
Ready to take control of your property taxes? Visit Ownwell to learn how you can save money on property taxes today.