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Pre-Paid Property Tax

In light of the recent passage of the GOP tax bill, area residents were scrambling to pre-pay their 2018 property taxes before the end of the year. The new law will cap the amount of state and local taxes that an individual can deduct at $10,000 which is far less than some folks in the area had been deducting due to high local property values.

In the District, $50 million in property taxes were pre-paid by about 7,500 homeowners compared to $93 million by 13,000 Fairfax County residents. While the ability to pre-pay property taxes varies by jurisdiction, DC’s Chief Financial Officer released a statement concerning the laws in the District. In the end, it seems that the benefit of pre-payment had to be weighed on a case-by-case basis.