Are Municipal Taxes deductible? Nathan Carroll Shupilov Success Team Follow Unlike some Legal Fees and the Welcome Tax, Municipal Taxes are immediate tax deductions for investment properties with with sole purpose of producing rental income. Example: If your investment condo makes $12,000 a year in Gross Rental income and you pay $4,000 a year in Municipal Taxes, you can deduct the $4,000 from your final NET income, bringing down your total taxable obligation to $8,000. Related articles Is the Welcome Tax deductible? Can you deduct legal, accounting, and other professional fees? Are School Taxes deductible? Are Condo Fees tax deductible? What is a Real Estate Investment Trust (REIT)? Comments 0 comments Please sign in to leave a comment.