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Homeownership Tax Preferences
A new study details the importance of homeownership tax preferences in
all congressional districts.
Among the 35 million taxpayers who use the home mortgage deduction,
the average amount of mortgage interest deducted among each tax
filer is $9,650. For those who deducted real estate taxes, the
average is more than $3,000, making these two of the most widely
used and important preferences in the federal tax code, according to
a new study released by the National Association of Home Builders (NAHB).
Using the most recent IRS data available from 2003, the report
provides an in-depth analysis of the local use of the mortgage
interest and real estate deductions in each of the 435 congressional
districts across America.
It found that every state has at least one congressional district
that had a minimum of $259 million of mortgage interest and $43
million of real estate taxes deducted.
“Because the mortgage interest and real estate deductions
significantly reduce federal tax liabilities for home owners, they
are important tools for promoting homeownership,” said Jerry Howard,
executive vice president and CEO of NAHB. “The report shows that
millions of working families across the nation use and depend upon
these important tax incentives to help them maintain their current
standard of living.”
According to the findings, the average congressional district
contains roughly 80,000 taxpayers who use the mortgage interest
deduction and 88,000 families who deduct real estate taxes,
illustrating the widespread use of these important middle-class tax
preferences. On a national basis, 35 million taxpayers utilized the
mortgage interest provision in 2003 and deducted a total of $338
billion, or an average of $9,650 per household.
There were 39 million taxpayers in 2003 who deducted an aggregate of
$119 billion in real estate taxes, or an average deduction of more
than $3,000 per tax filer.
Higher mortgage interest deductions occurred in areas with rapidly
growing populations and high house prices. California posted the
highest average among states at approximately $14,000 per taxpayer.
The 14th district of California, which encompasses parts of San
Mateo, Santa Clara and Santa Cruz counties, ranked first with an
average of roughly $35,000 per household.
The top six congressional districts in terms of cumulative mortgage
interest total more than $15.5 billion and are located in the Golden
State. By contrast, the five congressional districts with the least
mortgage interest deducted are located in the New York City
metropolitan area, where renters exceed the number of home owners.
Not surprisingly, on a statewide basis, California had the most
amount of mortgage deducted at $64.9 billion. Several other states
across the country also registered at least $10 billion in mortgage
interest deducted, including New York ($19.7 billion), Florida
($17.6 billion), Texas ($16 billion), Illinois ($15.9 billion), New
Jersey ($12.9 billion), Michigan ($11.5 billion), Virginia ($11.3
billion), Ohio ($10.9 billion), Pennsylvania ($10.8 billion) and
Georgia ($10.6 billion).
Higher real estate tax deductions were prevalent in areas with high
home prices and real estate tax rates. New Jersey, with an average
real estate tax deduction of $6,000, had the highest average among
states. The Garden State was followed by New York ($5,181), New
Hampshire ($4,830), Connecticut ($4,769), Texas ($4,501) and
Illinois ($4,129).
Copyright 2006 PropertySource Network |
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Jeannie Hamilton
ABR, CRS, e-PRO, GREEN, GRI, SRES
Broker/Owner
Hamilton Properties
1100 Deer Trail Road
Boulder, CO 80302-9437
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303-443-9221 |
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303-817-9988 |
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888-449-3611 |
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800-443-9212 |
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jeannie@jeannierealtor.com |
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Copyright © 2012 Jeannie Hamilton, Inc
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Last Updated:
January 24, 2012
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