What is the maximum allowable deduction for real estate taxes on a primary residence?

The maximum allowable deduction for real estate taxes paid on a primary residence is capped at $10,000 for individuals and married couples filing jointly, as per the Tax Cuts and Jobs Act (TCJA) that took effect in 2018. This provision allows taxpayers to deduct state and local taxes, including real estate taxes, up to a combined total of $10,000, which covers all state and local income taxes or sales taxes as well as property taxes.

Choosing a deduction of $8,000 would be lower than the maximum allowable limit, thus not fully reflecting the potential deduction taxpayers can claim. Recognizing the figures from tax law is crucial for determining the correct maximum deduction.