Who Receives Homeownership Tax Deductions and How Much?

Research Report

Who Receives Homeownership Tax Deductions and How Much?

August 1, 2005

Abstract

Some of the costliest tax expenditures the federal government allows go to subsidizing homeownership. In 2004, the total tax expenditure value of the mortgage interest deduction was $70.2 billion while the value for the real estate tax deduction was $19.3 billion. Fifty-four percent of these sums went to taxpayers at or above $100,000 of income and 72 percent went to taxpayers at or above $75,000. Very few taxpayers receive these two subsidies at low incomes-as most low-income tax filers owe little tax, do not itemize, and are less likely to own a home-and very many taxpayers receive them at higher incomes.

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