Don’t spend it all in one place.
Some homeowners — particularly those with high property taxes — are spending this last week of 2017 in lines at county offices looking to pre-pay 2018’s tax bill before the end of the year.
That’s because the new tax bill that passed last week puts a cap on the amount you can deduct for state, local and property taxes at $10,000. Currently the deduction is unlimited. In some high-tax states like New York, New Jersey and Maryland, that means some homeowners will be paying a lot more in taxes.
The three counties with the highest median tax bills in the country — Nassau County, Rockland County and Westchester County, which are all in New York — have median tax bills exceeding the $10,000 cap, according to the Tax Foundation
While some jurisdictions have long allowed for pre-payment, others are scrambling, working to ensure that those who want to pre-pay can — even if the jurisdiction can’t necessarily guarantee the pre-payment will be deductible.
I’m struggling to muster any sympathy given that the majority of taxpayers in America have been subsidizing these folks’ ridiculous local tax burden for decades. If they want to live in a tax hell, that’s their business. Just don’t expect others to help pay for it.