Real estate taxes appear in Box 10 of your 1098 form, not on the main statement itself

Your mortgage lender reports property taxes paid during the year in Box 10 of Form 1098. This box is labeled "Mortgage insurance premiums" on some versions, but the property tax information sits separately on the same form. The amount shown is what your lender paid to your local tax assessor on your behalf — usually from an escrow account that collects a portion of your monthly mortgage payment.

The 1098 you receive from your lender shows only taxes the lender paid from escrow. If you paid property taxes directly to your county or municipality outside of escrow, those payments do not appear on the 1098. You would need to find those records separately if you want to deduct them.

Your lender mails the 1098 by January 31 each year for the prior tax year. The IRS also receives a copy, so the numbers on your 1098 should match what you report on your tax return.

Key Takeaways

  • Property taxes paid through your mortgage escrow account appear in Box 10 of Form 1098, sent by your lender by January 31.
  • Only taxes your lender paid from escrow show on the 1098; taxes you paid directly to your county do not appear there.
  • You can deduct property taxes on Schedule A (itemized deductions) if you itemize rather than take the standard deduction.
  • The state and local tax (SALT) deduction is capped at $10,000 per year, which includes property taxes, income taxes, and sales taxes combined.

How to locate Box 10 on your 1098

Open your 1098 form and look at the numbered boxes across the top and down the sides. Box 10 is in the lower left section of the form. It will show a dollar amount representing property taxes your lender paid from your escrow account during that tax year.

If you received your 1098 by mail, the boxes are printed clearly on the paper copy. If you received it electronically through your lender's website or portal, you may need to read a PDF or view it in a digital format that shows the box numbers. Some lenders also provide a summary page that highlights key numbers like Box 10.

If Box 10 is blank or shows zero, it means either your lender did not collect property taxes through escrow that year, or no taxes were paid during the period covered by the form. This can happen if you just started the mortgage, paid off the loan, or switched to paying taxes directly.

When property taxes do not appear on the 1098

Property taxes you paid directly to your county assessor, tax collector, or municipality will not show on your 1098. This happens when you do not have an escrow account, when you paid taxes outside of escrow, or when you made extra payments beyond what the lender collected.

If you paid property taxes directly, you can still deduct them on your tax return. You will need to gather receipts, cancelled checks, or payment confirmations from your county or local tax office. Many counties provide online records of property tax payments if you search by property address or parcel number.

Keep records of any property tax payments you make outside of escrow. The IRS may ask for proof if you deduct amounts that do not appear on a 1098 or other official document.

Understanding the SALT deduction cap

Property taxes are part of the state and local tax (SALT) deduction, which is capped at $10,000 per year. This $10,000 limit includes property taxes, state income taxes, and local sales taxes combined — not $10,000 for each type.

If your property taxes alone exceed $10,000, you can deduct only $10,000 total for all state and local taxes. If you also pay state income tax or local sales tax, those amounts count toward the same $10,000 limit. This cap applies whether you are married filing jointly or filing as a single filer.

The SALT cap has been in place since 2018 and is set to expire after 2025 unless Congress extends it. Check current tax law or speak with a tax professional about how this affects your specific situation.

How to use Box 10 on your tax return

To deduct property taxes from Box 10, you must itemize deductions on Schedule A of Form 1040. You cannot claim this deduction if you take the standard deduction instead.

On Schedule A, there is a line for state and local taxes paid. Enter the amount from Box 10 of your 1098, along with any other state and local taxes you paid that year. Add them together, but remember the $10,000 annual cap applies to the total.

Itemizing makes sense only if your total itemized deductions (including property taxes, mortgage interest, charitable donations, and medical expenses) exceed the standard deduction for your filing status. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly.

What to do if Box 10 is missing or incorrect

If your 1098 arrives without a number in Box 10, or if the amount seems wrong, contact your lender first. Ask them to verify the property taxes they paid from your escrow account during the tax year. They may have made an error, or the information may not have been entered into the form yet.

Lenders sometimes issue corrected 1098 forms (marked as "corrected" on the document) if they find mistakes. If your lender sends a corrected form, use that version for your tax return and discard the original.

If you believe the amount is still incorrect after checking with your lender, you can file your return with the amount you believe is correct and keep documentation of your property tax payments. The IRS may contact you if the number on your return does not match the 1098 they received from your lender.

Frequently Asked Questions

Can I deduct property taxes if they do not appear on a 1098?

Yes. If you paid property taxes directly to your county or municipality, you can deduct them on Schedule A even though they do not appear on a 1098. You will need to keep receipts or payment records from your local tax office as proof. The IRS does not require a 1098 to deduct property taxes, but you must have documentation if asked.

What if my lender paid property taxes but did not send a 1098?

Contact your lender and ask for a 1098 or a statement showing the property taxes they paid from escrow. Lenders are required to send a 1098 if they collected and paid property taxes. If they do not respond, you can contact the IRS or file your return with the amount you believe is correct, keeping records of your escrow statements as proof.

Does the $10,000 SALT cap include only property taxes or other taxes too?

The $10,000 cap includes property taxes, state income taxes, and local sales taxes combined. If you paid $8,000 in property taxes and $3,000 in state income tax, your total SALT deduction would be capped at $10,000, not $10,000 for each type.

If I paid extra property taxes beyond escrow, do I report both amounts?

Yes. Report the amount from Box 10 (taxes your lender paid from escrow) plus any additional property taxes you paid directly. Add them together on Schedule A, but the combined total cannot exceed the $10,000 SALT cap for the year.