How Much Is That Home Ownership Tax Deduction Worth?
July 24, 2001
The figures for 2000 won't be known for some time, but homeowners deducted at least $164 billion in mortgage interest and property taxes from their federal income taxes in 1990, according to the Brookings Institution. However, most of the benefit went to homeowners in just a few metropolitan areas.
- Hawaii residents realized tax benefits of $9,181 per owner-occupied housing unit -- the highest in the 50 states.
- They were followed by residents of the District of Columbia, at $7,535 per unit.
- Residents of other states in the top rankings included California at $7,198 per owner-occupied unit.
- Other states in which residents realized nearly or more than $5,000 per year in tax deductions included Connecticut, New Jersey, New York, Massachusetts and Maryland.
California received more than one-quarter of the net benefits -- although it is home to only 10 percent of the nation's homeowners.
Three large metro areas -- New York-northern New Jersey, Los Angeles-Riverside-Orange County, and San Francisco-Oakland-San Jose -- received more than 75 percent of the total net tax benefit.
Source: Brookings Institution, "Coastal Clout," Washington Post, July 23, 2001.
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