The IRS understands that paying yearly property taxes can be difficult, and provides a tax benefit to homeowners in the form of the property tax deduction. The property tax deduction is part of a popular package of deductions offered to homeowners, including the mortgage interest deduction and deductions or credits for certain home improvements.
 

Keep in mind that the property tax deduction is only available as an itemized deduction. You will need to determine if you have enough deductions available to itemize. This will be discussed in more detail later. 

Property taxes must be paid by the legal owner of non-exempt personal or commercial real estate. If you own a piece of property, you will receive an annual property tax statement from your tax assessor. Once you have received the property tax statement, it is your legal responsibility to pay your property taxes before the due date.
In addition to real estate, the owners of certain properties like cars and boats may also be subject to different types of property tax. These property taxes are often collected as title or registration fees and vary by state. 

If you leave your property tax bill unpaid, your property becomes delinquent and a property tax lien is attached to your property's title. After a certain number of months of delinquency, and after several opportunities to pay your accrued tax and penalties, your county will begin the process of foreclosure. The tax foreclosure process can last six months or more and may remain on your credit report indefinitely.
After the foreclosure notice has been issued, you may be evicted from the property in preparations for a tax sale. Often, the county sheriff or clerk will release a foreclosure list to interested investors, who will bid on the properties at the local courthouse. Ownership of the delinquent properties will be transferred to the winning bidder once they have paid any outstanding property taxes and penalties and settled any remaining liens.