Limit Mortgage Deductions for Wealthy Households

The Oregon itemized mortgage interest deduction (MID) for homeowners does not work the way most of us think it does. The MID benefits only the top third of Oregon taxpayers who itemize their tax returns and have mortgages. Yet it will cost more than 50% of the $1.9 billion revenue cost of tax benefits to homeowners for the next biennium. House Bill 2006 will cap the MID available to high-income homeowners and divert the added revenue, about $100 million a year, to support low-income housing programs. Tell the legislature to limit mortgage deductions.


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HB 2006: 

  • caps the state mortgage interest deduction at $15,000 for a primary residence, enough to cover a mortgage of about $400,000
  • eliminates the MID for a second (vacation) residence
  • eliminates the MID for high-income households (over $200,000 adjusted gross income for a couple filing jointly; over $100,000 for an individual)
  • has no impact on the federal mortgage interest deduction
  • has no impact on landlords or rentals. Rental deductions are regulated differently.