Who Claims Property Taxes When Filing Married Filing Separately?

Generally, the spouse who paid the property taxes can deduct them when filing Married Filing Separately. Payments from joint or community funds are usually split based on ownership and state law. If one spouse itemizes, the other must itemize too.

If you’re still deciding between MFS and MFJ, visit our Married Filing Separately guide to compare how each filing status works.

H2: How the Property Tax Deduction Works When You File Separately

Property taxes count as itemized deductions, so they only help when you itemize instead of taking the standard deduction.

Key rules:

• If one spouse itemizes, the other spouse must also itemize.
• Each spouse claims deductions only on their own tax return, so allocation must be accurate.
• Only the spouse who paid the property taxes can deduct them unless the payment came from a joint checking or community fund, which typically leads to a split.
• This guide focuses on MFS property tax rules, not general real estate tax guidance.

This article helps you understand how to split the deduction correctly when using the Married Filing Separately status without the jargon or the headache.

H2: When Both Spouses Co-Own the Home

The IRS allows deductions based on each spouse’s ownership interest. When the deed shows joint ownership, a 50/50 split is common unless you have records showing your actual ownership percentages.

Source: IRS Pub. 530

H3: Default 50/50 split for co-owned property

When both spouses own the home and file separately, the IRS usually expects each spouse to deduct property taxes based on their ownership share. If you each own half, a 50/50 split is the natural starting point. Here’s how that typically works:

• Payments made from joint funds are generally treated as coming from both spouses in proportion to each spouse’s ownership interest. A 50/50 split is common when ownership and access to the account are equal.
• Payments made from separate funds allow each spouse to deduct only the portion they paid, provided they can show that the account and funds were truly separate.
• Neither spouse can claim more than their share of ownership or more than they actually paid.

This approach follows IRS rules that limit deductions to amounts you’re legally responsible for and actually paid.

Source: IRS Pub. 530, Real Estate Taxes

If you’re also splitting mortgage interest, see our guide on who claims mortgage interest when filing separately for rules and examples.

H3: Payment from a joint checking account

Payments from a joint account are treated as made equally by both spouses, even if the income funding the account came from one spouse. The IRS views joint accounts as jointly owned funds unless you prove otherwise.

Example:

• You deduct $3,000
• Your spouse deducts $3,000

Simple, clean, symmetry worthy of a geometry textbook.

H3: Payment from separate funds

Payments from an account owned solely by one spouse may be deductible only by that spouse, assuming you can show:

• The account owned is truly separate, and
• The payment came from funds owned solely by that spouse.

This is where documentation becomes your best friend.

H2: How to Document Your Share of Property Taxes

To maintain records documenting your right to the deduction:

• Keep tax bills and statements showing the payment source.
• Keep cancelled checks or payment confirmations.
• Keep deed or ownership proof.
• Retain notes explaining any ownership allocation that differs from 50/50.

The IRS likes receipts. Keeping them is like keeping screenshots when someone says they “didn’t see your text.”

When Only One Spouse Is on the Deed

Ownership matters—a lot.

General rule: Only that spouse can claim the deduction

Only a spouse who owns the property or is legally responsible for the tax can deduct it. Being on the deed is strong evidence of ownership, but some states recognize equitable or beneficial ownership when a non-owner spouse pays from separate funds.

Source: IRS Pub. 530

What if the non-owner spouse pays?

If the non-owner spouse pays from separate funds, they may deduct the amount only if state law recognizes beneficial ownership. This varies widely.

Example:

• In most states, Alex deducts $4,000
• In a few equitable-ownership states, Casey may deduct the amount Casey paid from separate funds
• If filing in a community property state, see the next section (everything changes)

Community Property States: Special Rules That Change Everything

In community property states, amounts paid with community income are generally split equally between spouses when filing separately. Community-property rules govern the allocation of income and deductions.

States include: AZ, CA, ID, LA, NV, NM, TX, WA, WI.

Community income vs separate funds

In community property states:

• Wages earned by either spouse are community income.
• Income held in an account considered community property remains community property.
• Payments for property taxes made with community income are treated as made 50% by each spouse, even if only one spouse made the payment.

Translation: Even if you “paid all the property taxes,” the State may say you paid half, and your spouse paid half.

Source: IRS Pub. 555, Community Property

Allocation under community property law

If the property is community property, the deduction is split 50/50.

This is where couples often discover that community property law is less “romantic partnership” and more “everything is ours now.”

Form 8958: How you report the split

Separate filers in community property states use Form 8958 to report how income and deductions are allocated between spouses.

Each spouse’s separate return must show their half (or their actual share) of taxes paid.

You don’t need a PhD to complete the form, but it does help to have patience and maybe snacks nearby.

For a deeper dive into how community property affects income and deductions, visit our guide to community property rules and Form 8958.

How to Split Property Taxes When Filing Separate Returns

Here’s your quick allocation checklist to keep things simple and compliant:

Allocation Checklist

1. Identify ownership
2. • Joint? One spouse? Separate property? Community property?
3. Identify the payment source
4. • Joint funds? Separate funds? Community funds? Joint checking account?
5. Determine whether you live in a community property state
6. • Common-law or community property state?
7. Confirm that both spouses itemize
8. • If one spouse itemizes, the other spouse must also itemize.
9. Allocate based on ownership + funds
10. • 50/50 split is common, but not always correct.
11. Maintain documentation
12. • The IRS loves paper trails.
13. Report accurately (and attach Form 8958 if required)
14. • In community property states, attach Form 8958.

Numerical Examples of Property Tax Allocation Under MFS

Real numbers help more than theoretical rules. Here are four clean examples.

Example A: Joint deed + joint funds

Real estate taxes: $8,000

Allocation:

• You deduct $4,000
• Your spouse deducts $4,000

Example B: Joint deed + separate funds

Real estate taxes: $10,000

Allocation:

• Alex deducts $10,000
• Taylor deducts $0
  (unless community property rules apply)

Example C: Only one spouse is the legal owner

Jordan owns the home. Jamie pays $3,000 from Jamie’s own account.

Allocation (most states):

• Jordan deducts $3,000
• Jamie deducts $0

Example D: Community property state using Form 8958

Real estate taxes: $6,000

Allocation:

• Each spouse deducts $3,000, regardless of who clicked “Pay Now.”

Conclusion

In the MFS world, determining who can claim the Married Filing Separately property tax deduction comes down to ownership, payment source, and whether your state follows community property rules. When one of you itemizes deductions, the other spouse must also claim itemized deductions. Also, an accurate allocation ensures both you and your spouse file separate returns correctly and confidently.

Start filing your separate returns today!