14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
T15-0230
1
Benefits from Mortgage Interest Deduction and 15 Percent Non-refundable Credit, 2016
Expanded Cash Income
Percentile 2,3
Lowest Quintile
Second Quintile
Third Quintile
Fourth Quintile
Top Quintile
All
Tax Units
(thousands)
Tax Units with Mortgage
Interest
Current Mortgage Interest Deduction
Average Benefit (dollars)
Tax Units with Benefit 4
Current Law Limits 5
$500,000 Limit 6
Percent
Tax Units
Tax Units
Number
All Tax
All Tax
Within
With
With
(thousands)
Units
Units
Class
Benefit
Benefit
15 Percent Non-refundable Credit
Average Benefit (dollars)
Tax Units with Benefit
Current Law Limits
$500,000 Limit
Percent
Tax Units
Tax Units
Number
All Tax
All Tax
Within
With
With
(thousands)
Units
Units
Class
Benefit
Benefit
4
Number
(thousands)
Percent
Within
Class
47,691
37,422
33,984
28,418
23,750
172,532
2,793
6,937
12,983
17,294
17,813
57,872
5.9
18.5
38.2
60.9
75.0
33.5
216
1,546
5,356
10,391
16,186
33,694
0.5
4.1
15.8
36.6
68.2
19.5
1
18
129
474
2,134
401
206
441
819
1,296
3,131
2,056
1
18
129
463
1,915
369
206
439
815
1,267
2,810
1,892
471
3,297
10,385
16,614
17,601
48,368
1.0
8.8
30.6
58.5
74.1
28.0
3
38
186
542
1,252
307
258
430
609
928
1,689
1,096
3
38
186
534
1,144
291
258
430
608
913
1,544
1,038
12,233
5,942
4,447
1,129
115
8,887
4,583
3,574
769
63
72.7
77.1
80.4
68.2
54.1
7,643
4,322
3,490
731
59
62.5
72.7
78.5
64.8
51.0
1,228
2,115
3,834
5,359
4,588
1,965
2,907
4,885
8,274
9,004
1,189
1,982
3,315
3,918
2,991
1,903
2,725
4,224
6,057
5,878
8,799
4,522
3,528
753
61
71.9
76.1
79.3
66.8
52.7
955
1,264
1,793
2,272
2,126
1,328
1,662
2,260
3,403
4,031
925
1,186
1,556
1,675
1,417
1,287
1,559
1,962
2,509
2,687
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
(1) Calendar year.
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of
expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2015 dollars): 20% $22,823; 40% $44,550; 60% $79,661; 80%
$141,303; 90% $207,758; 95% $294,348; 99% $720,886; 99.9% $3,672,221.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value. Estimates are static and do not assume that taxpayers would adjust their investment portfolio and pay down their mortgage balance if their tax benefit from
mortgage interest was reduced.
(5) Interest would be eligible subject to current law limits ($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans).
(6) Interest would be eligible up to a maximum of $500,000 of debt on a primary residence, second home, and/or a home equity loan.