📅 2026 Update: Recent Changes in Property Tax Laws

Since the original article on capital gains tax and property was written, there have been significant updates regarding property tax laws and related deductions. These changes impact how property owners manage their taxes and capital gains. You can find the earlier article further down this page for more detailed information.

📈 Federal SALT Deduction Cap Increase

The federal State and Local Tax (SALT) deduction cap has increased from $10,000 to $40,400 for the 2026 tax year. This change allows taxpayers to deduct a larger amount of state and local taxes, including property taxes. It can provide relief for many homeowners, especially those in states with high property taxes.

🏠 Indiana Property Tax Reform

In April 2025, Indiana passed Senate Enrolled Act No. 1, introducing property tax reforms that will be phased in over six years, starting in 2026. The first change is a new supplemental homestead credit.

This credit reduces tax bills by 10%, with a maximum of $300 for eligible homeowners, easing the financial burden on many residents.

🏢 New York City Property Tax Rates

New York City has set its property tax rates for the 2026 tax year. Class 1 properties will face a rate of 19.843%, Class 2 properties will be at 12.439%, Class 3 properties at 11.108%, and Class 4 properties at 10.848%. These rates can significantly affect property owners' tax obligations.

🏞️ Montana Property Tax Rate Adjustments

Montana has updated its property tax rates for 2024 to 2026, introducing tiered rates for residential properties. Additionally, rebates for primary residences are part of these updates. Homeowners may benefit from these changes, as they aim to offer more relief based on property value and usage.

📌 Key Points Summary

  • The SALT deduction cap increased to $40,400 for 2026.
  • Indiana's new homestead credit offers a 10% tax bill reduction.
  • New York City's property tax rates vary significantly by class.
  • Montana introduces tiered rates and rebates for residential properties.
  • These updates can ease the tax burden for many homeowners.

💡 Tips for Managing Property Taxes

Review the details of your own situation with your attorney to understand the best options for you.

🏡 Understand Your State's Property Tax Laws

Every state has different property tax laws. Being aware of these can help you better manage your tax obligations and take advantage of any available credits or deductions.

📅 Keep Track of Important Deadlines

Homeowners in Indiana should apply for the new supplemental homestead credit by the deadline set by their local tax assessor's office. This deadline is typically before the end of the year, so it’s important to stay informed.

📞 Contact Local Tax Assessors

If you have questions about property taxes or the new homestead credit in Indiana, reach out to your local tax assessor's office. They can provide you with specific information about eligibility and processing times.

📊 Monitor Average Property Tax Bills

The average property tax bill for single-family homes rose to $4,427 in 2025, which is a 3% increase from the previous year. Keeping an eye on trends can help you anticipate changes in your tax bills.

🛠️ Explore Property Tax Assistance Programs

Many states and localities offer assistance programs for eligible homeowners. These can include exemptions and credits that can reduce your overall property tax burden. Contact your local tax office for more information.

🏆 Ranked by User Reviews (2026)

This section highlights services related to property taxes and tax preparation. The ratings are based on Trustpilot data checked in October 2026. Keep in mind that scores can change over time, and reviews can vary widely.

Unhappy customers tend to post more reviews, which may affect the overall impression of the service.

🥇 1. H&R Block

H&R Block has been rated 1.5 on Trustpilot. They are known for their tax preparation and resolution services, which can assist property owners in filing their taxes correctly. However, users have noted a low TrustScore and a high volume of negative feedback, indicating a need for potential users to consider this when seeking help with their property tax issues.

🆓 Free Property Tax Assistance Programs

Many states and localities offer free property tax assistance programs for eligible homeowners. These programs can include various exemptions and credits that may help reduce overall tax obligations. Homeowners should reach out to their local tax assessor's office or visit their official websites for specific options available in their area.

🔎 What to Compare When Choosing Tax Services

  • 🏷️ Trustpilot scores and number of reviews
  • 💼 Range of services offered, especially related to property taxes
  • 📞 Availability of customer support and assistance
  • 📅 Timeliness of service and processing
  • 💬 User testimonials and feedback on service quality

❓ Frequently Asked Questions

❓ What is the new supplemental homestead credit in Indiana?

The new supplemental homestead credit in Indiana provides a 10% reduction on property tax bills, with a maximum of $300 for eligible homeowners starting in 2026.

🔍 How can I apply for property tax assistance programs?

Homeowners can apply for property tax assistance programs by contacting their local tax assessor's office. They can provide information about available programs and the application process.

📊 How have property tax rates changed recently?

Property tax rates vary significantly across states. For example, New York City's property tax rates for 2026 are 19.843% for Class 1 properties, while Montana has introduced tiered rates for residential properties.

📅 When do I need to apply for the supplemental homestead credit in Indiana?

Homeowners in Indiana should apply for the supplemental homestead credit by the deadline set by their local tax assessor's office, typically before the end of the year.

📉 What was the average property tax bill for single-family homes in 2025?

The average property tax bill for single-family homes in 2025 was $4,427, marking a 3% increase from the previous year.

🚪 Where can I find more information about property tax laws?

Homeowners can find more information about property tax laws by visiting their state’s tax office website or contacting their local tax assessor's office for specific details and assistance.

⚖️ Recent Court Cases Related to Property Taxes

Recent court rulings have addressed various aspects of property tax laws, impacting how they are applied and enforced. These cases can influence property owners and their obligations.

You can browse more rulings on the news page for additional updates on recent court decisions related to property taxes.

End of October 2026 Update






Laws associated with capital gains tax on property typically shift based on the party in office and the state of the United States housing economy. For instance, if you sold an income producing property during the following tax years, your profit will be taxed at the following capital gains rates:



         For income-producing property held more than one year, an investor in a 25% or greater tax bracket will be taxed at a 15% long term capital gains rate.



         For 2006 and 2007, investors in a 15% or lower marginal tax bracket will be taxed at a 5% capital gains rat.

Capital Gains Tax on Property


         For 2008 through the 2010 tax years, the capital gains tax on property will be lowered from 5% to 0%.





The capital gains tax on property is also applied to rental properties. To qualify for the capital gains tax on property, you must occupy your rental property for at least two of the five years you owned the property. To calculate the capital gains, list your original property price, and subtract the cost of improvements made to the property. Take this number, and subtract the depreciation cost, including property taxes, and other costs such as loan interests. This figure is known as the adjusted basis. The next step, is to determine the market value--subtract this figure from the adjusted basis, and then subtract the selling cost from the fair market to determine the capital gains tax on rental property.