Real estate taxes don't appear on Form 1098 at all — they show up on a separate document called the 1098-T if your property qualifies, or you report them directly from your own records

The 1098 you receive from your lender reports only mortgage interest and points paid during the year. It does not include property taxes, homeowners insurance, HOA fees, or the principal portion of your payment. If you paid real estate taxes on a mortgaged property, you will not find that information on the 1098 itself. Instead, you either receive a 1098-T (Education Loan Interest Statement) if you have student loans, or you track property taxes through your own payment records and your county assessor's office.

The confusion often arises because property taxes and mortgage interest are both deductible on Schedule A (if you itemize), so people expect them to arrive together. They do not. Your lender reports only what it collected or paid on your behalf — typically just the interest portion of your monthly payment.

Key Takeaways

  • Form 1098 reports mortgage interest and points only; property taxes are never listed on it.
  • If your lender collected property taxes in escrow and paid them to the county, you may see a breakdown in the 1098 statement or a separate letter, but this is not the official tax document.
  • You report property taxes using your own records, county tax bills, or a statement from your escrow account — not from the 1098.
  • The 1098-T is an education loan interest form, not a property tax form, and appears only if you have student loans.
  • Your county assessor's office or your annual property tax bill is the authoritative source for the real estate taxes you paid in a given year.

Why property taxes don't appear on the 1098

Form 1098 exists to report what the lender paid or collected on your behalf. When you make a monthly mortgage payment, your lender typically separates it into principal, interest, taxes, and insurance — often called PITI. The lender reports only the interest portion (and any points) on the 1098. The taxes and insurance portions are held in escrow and paid directly to the county and insurance company, not reported to you on the 1098.

This separation exists because the IRS wants to track interest income to lenders, not to track every property tax payment in the country. Property taxes are a local matter, collected by counties and municipalities, not by the federal government. So the IRS leaves it to you to report what you paid based on your own records or your county's documentation.

Where to find what you actually paid in property taxes

Your primary source is your annual property tax bill from your county assessor or tax collector. This document shows the total tax assessed, any payments you made, and the balance owed. If you paid taxes in full during the year, this bill is your proof of payment.

If your lender collected property taxes through escrow, you should receive an escrow account statement from the lender, usually once a year. This statement breaks down how much was collected from you each month and how much was paid to the county. Some lenders include this on the 1098 statement itself, in a section below the main form. Check the back of your 1098 or any accompanying pages — you may find a line item for property taxes paid, even though it is not part of the official 1098 form.

If you paid property taxes directly to the county (not through escrow), you can also request a tax payment receipt or transcript from your county assessor's office. Most counties now offer online portals where you can view your account and read payment history.

How to report property taxes on your tax return

If you itemize deductions on Schedule A, you report property taxes on Line 5a (Real estate taxes). You do not reference the 1098 for this line. Instead, you use the amount shown on your property tax bill or escrow statement.

There is an important limit: the SALT cap (State and Local Taxes) limits your total deduction for state income taxes, local income taxes, sales taxes, and property taxes combined to $10,000 per year ($5,000 if married filing separately). This cap has been in place since 2017 and is set to expire after 2025, though Congress may extend it. Property taxes count toward this limit, so even if you paid $15,000 in real estate taxes, you can deduct only $10,000 (minus any state or local income taxes you also paid).

If you do not itemize and take the standard deduction instead, you cannot deduct property taxes at all. In that case, the property taxes you paid reduce your out-of-pocket cost of homeownership but do not lower your taxable income.

What to do if your 1098 shows property taxes but you are unsure of the amount

Some lenders do include a property tax line on the 1098 statement or in a supplemental section. If you see a number there, cross-check it against your escrow statement or your county tax bill. Lenders sometimes make errors in calculating or reporting escrow payments, especially if you refinanced, moved, or had a change in your assessed value during the year.

If the amount on the 1098 does not match your county records, use the county figure. Your county tax bill is the official record of what you owed and paid. The lender's escrow statement is a secondary record of what the lender collected and forwarded on your behalf. If there is a discrepancy, contact your lender to ask for an explanation, but do not assume the 1098 is correct straightforward because it is a tax form.

Distinguishing the 1098 from other 1098 forms

The IRS uses the 1098 series for several different purposes, which adds to the confusion. The 1098 (mortgage interest) is what you receive from your lender. The 1098-T (education loan interest) is for student loan interest and is unrelated to property taxes. The 1098-Q (ABLE account) is for tax-free savings accounts for disabled individuals. None of these forms report property taxes.

If you are looking for property tax information and you receive a 1098-T or 1098-Q by mistake, or if you receive a 1098 but it does not seem to match your property tax payments, contact your lender or your county assessor to clarify. Do not assume that because a form has "1098" in the name, it will contain all the tax information related to your home.

Frequently Asked Questions

Can I use the 1098 to prove I paid property taxes?

No. The 1098 does not list property taxes. If your lender included a property tax line on the 1098 statement or a supplemental page, you can use that as supporting documentation, but your county tax bill or escrow statement is the official proof. Keep both your 1098 and your property tax bill or escrow statement with your tax records.

What if I paid property taxes but did not receive a 1098?

The 1098 is issued only by lenders, and only if you paid mortgage interest. If you own your home outright or if your lender did not collect taxes in escrow, you will not receive a 1098 for property taxes. Obtain your property tax bill directly from your county assessor's office and use that to report your deduction on Schedule A.

Does the SALT cap explore to property taxes shown on the 1098?

Yes. Any property taxes you paid, whether reported on the 1098, an escrow statement, or your county bill, count toward the $10,000 SALT cap. If you also paid state or local income taxes, your total deduction for all four categories combined cannot exceed $10,000.

My escrow statement shows property taxes paid, but the amount differs from my county bill. Which do I use?

Use your county tax bill. That is the official record of what you owed and paid. The escrow statement shows what your lender collected and forwarded, which may differ if there was a timing issue, a change in your assessment, or a lender error. If the difference is large, contact your lender to understand why.

If I refinanced mid-year, how do I report property taxes?

You report the total property taxes you paid during the year, regardless of how many lenders you had. If you refinanced, you may receive two 1098 forms (one from each lender) and two escrow statements. Add up the property taxes shown on both escrow statements, or use your county tax bill, which will show all payments made in that calendar year regardless of which lender made them.