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Research report

The Benefits of the Mortgage Interest and Property Tax Deductions

Benjamin H. Harris, Amanda Eng
August 27, 2013
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Abstract

The benefits of itemized deductions for mortgage interest and property taxes vary by income and demographic characteristics. The two deductions increase after-tax income most for high-income families, particularly those with children, while low-income households hardly benefit at all. On average, homeowners in the highest quintile see a 1.4 percent rise in after-tax income, compared with just a 0.3 percent increase for those in the middle quintile and virtually no gain for those in the bottom two quintiles. Within each income quintile, families with children experience the largest income boost, while elderly households benefit the least.

Research Area

Federal Budget and Economy Individual Taxes High-income households Homeownership Low-income households
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  • Benjamin H. Harris
  • Amanda Eng
Research report

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Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
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