Florida Homeowners May Get Tax Relief Under New Bill
- Author: Jorge Garcia
- Posted: 2025-04-29
This tax relief would mainly benefit middle-class families who often rely on mortgage insurance when they cannot afford a large down payment.
Why This Matters
Mortgage insurance is typically required for buyers who can’t pay at least 20% of a home’s price upfront. Many Americans fall into this category, especially as housing prices stay high.
In 2020 alone, over 361,000 homebuyers in Florida needed mortgage insurance, according to research from the Urban Institute.
Previously, a tax law allowed people to deduct their mortgage insurance premiums, saving them money.
Data from the IRS shows that middle-class buyers in 2020 received an average deduction of $2,100 under this expired rule.
How It Would Work
The tax deduction for mortgage insurance premiums existed between 2007 and 2021, but it expired in 2021.
Representative Buchanan’s bill, called the "Middle Class Mortgage Insurance Premium Act," would bring back this deduction and make it permanent. It would also increase the income limit for qualifying homeowners from $100,000 to $200,000 per family, allowing more people to benefit.
Over the 14 years the previous law was in place, Americans claimed the deduction 44.5 million times, saving a total of $64.7 billion, according to Seth Appleton, president of U.S. Mortgage Insurers (USMI). He added that its expiration has recently deprived many low- and middle-income families of this financial benefit.
What People Are Saying
Supporters of the bill emphasize how important it is for making homeownership more affordable for working families.
- Representative Jimmy Panetta stated, “This bill would make the mortgage insurance premium tax deduction permanent and help more middle-class families buy homes, even in today’s challenging housing market.”
- Representative Scott Fitzgerald added, “Homeownership is a key part of the American Dream, and families shouldn’t be penalized for pursuing it. This bill offers practical tax relief to help more people achieve that goal.”
Seth Appleton, U.S. Mortgage Insurers president, called the proposal “common-sense legislation” that would help hardworking families cover the cost of homeownership.
Florida's Housing Challenges
Florida has recently faced a housing affordability crisis, with rising property values, insurance costs, and homeowner association (HOA) fees adding to the financial strain.
At the same time, high mortgage rates are discouraging some buyers from entering the market. This proposed tax relief could help ease these burdens for many Floridians and make homeownership more attainable.
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Read more: Thousands of Americans Could Lose Their Homes Unless Congress Acts
