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May 25, 2010
50-State Ranking: Mortgage Interest Deduction
Tax Foundation, Tax Savings from Mortgage Interest Deduction Vary Significantly from State to State:
|
Mortgage Interest Deduction by State, Tax Year 2008 | ||||||
|
State |
Percentage of Returns Claiming Deduction |
Rank |
Average Deduction |
Rank |
Average Deduction |
Rank |
|
United States |
26.83% |
$ 3,279 |
$ 12,221 |
|||
|
Alabama |
24.02% |
32 |
$ 2,226 |
36 |
$ 9,267 |
38 |
|
Alaska |
22.42% |
38 |
$ 2,689 |
24 |
$ 11,994 |
16 |
|
Arizona |
31.53% |
11 |
$ 4,293 |
9 |
$ 13,616 |
7 |
|
Arkansas |
19.24% |
45 |
$ 1,610 |
46 |
$ 8,365 |
45 |
|
California |
29.24% |
19 |
$ 5,520 |
1 |
$ 18,876 |
1 |
|
Colorado |
34.54% |
3 |
$ 4,594 |
4 |
$ 13,300 |
9 |
|
Connecticut |
35.15% |
2 |
$ 4,396 |
8 |
$ 12,509 |
12 |
|
Delaware |
31.80% |
9 |
$ 3,817 |
14 |
$ 12,006 |
15 |
|
Florida |
24.92% |
28 |
$ 3,333 |
20 |
$ 13,375 |
8 |
|
Georgia |
31.13% |
12 |
$ 3,375 |
17 |
$ 10,844 |
24 |
|
Hawaii |
24.20% |
31 |
$ 4,048 |
11 |
$ 16,730 |
2 |
|
Idaho |
29.11% |
20 |
$ 3,081 |
21 |
$ 10,587 |
25 |
|
Illinois |
28.78% |
21 |
$ 3,337 |
19 |
$ 11,593 |
19 |
|
Indiana |
23.97% |
33 |
$ 2,070 |
38 |
$ 8,637 |
42 |
|
Iowa |
20.35% |
43 |
$ 1,649 |
45 |
$ 8,104 |
49 |
|
Kansas |
23.82% |
34 |
$ 2,060 |
39 |
$ 8,647 |
41 |
|
Kentucky |
24.57% |
30 |
$ 2,050 |
40 |
$ 8,345 |
46 |
|
Louisiana |
18.68% |
46 |
$ 1,780 |
43 |
$ 9,526 |
33 |
|
Maine |
25.81% |
25 |
$ 2,529 |
28 |
$ 9,798 |
31 |
|
Maryland |
37.94% |
1 |
$ 5,372 |
2 |
$ 14,162 |
5 |
|
Massachusetts |
31.74% |
10 |
$ 4,064 |
10 |
$ 12,805 |
11 |
|
Michigan |
27.97% |
22 |
$ 2,659 |
25 |
$ 9,505 |
34 |
|
Minnesota |
33.71% |
4 |
$ 3,714 |
16 |
$ 11,016 |
21 |
|
Mississippi |
18.39% |
47 |
$ 1,526 |
47 |
$ 8,301 |
47 |
|
Missouri |
25.50% |
26 |
$ 2,372 |
30 |
$ 9,303 |
36 |
|
Montana |
23.42% |
36 |
$ 2,316 |
32 |
$ 9,890 |
30 |
|
Nebraska |
23.10% |
37 |
$ 1,901 |
42 |
$ 8,233 |
48 |
|
Nevada |
29.55% |
17 |
$ 4,580 |
5 |
$ 15,502 |
3 |
|
New Hampshire |
30.68% |
15 |
$ 3,726 |
15 |
$ 12,142 |
14 |
|
New Jersey |
33.34% |
6 |
$ 4,406 |
7 |
$ 13,215 |
10 |
|
New Mexico |
21.48% |
39 |
$ 2,356 |
31 |
$ 10,969 |
22 |
|
New York |
23.73% |
35 |
$ 2,897 |
23 |
$ 12,206 |
13 |
|
North Carolina |
29.43% |
18 |
$ 2,979 |
22 |
$ 10,122 |
27 |
|
North Dakota |
14.60% |
50 |
$ 1,222 |
50 |
$ 8,372 |
44 |
|
Ohio |
26.74% |
23 |
$ 2,266 |
35 |
$ 8,475 |
43 |
|
Oklahoma |
21.27% |
40 |
$ 1,700 |
44 |
$ 7,992 |
50 |
|
Oregon |
32.46% |
8 |
$ 3,858 |
13 |
$ 11,885 |
17 |
|
Pennsylvania |
25.07% |
27 |
$ 2,439 |
29 |
$ 9,728 |
32 |
|
Rhode Island |
30.74% |
14 |
$ 3,367 |
18 |
$ 10,951 |
23 |
|
South Carolina |
26.17% |
24 |
$ 2,607 |
27 |
$ 9,959 |
28 |
|
South Dakota |
14.84% |
49 |
$ 1,396 |
48 |
$ 9,404 |
35 |
|
Tennessee |
20.70% |
41 |
$ 2,143 |
37 |
$ 10,349 |
26 |
|
Texas |
20.36% |
42 |
$ 2,027 |
41 |
$ 9,955 |
29 |
|
Utah |
33.17% |
7 |
$ 3,875 |
12 |
$ 11,683 |
18 |
|
Vermont |
24.87% |
29 |
$ 2,313 |
33 |
$ 9,299 |
37 |
|
Virginia |
33.61% |
5 |
$ 4,737 |
3 |
$ 14,094 |
6 |
|
Washington |
31.04% |
13 |
$ 4,426 |
6 |
$ 14,262 |
4 |
|
West Virginia |
15.20% |
48 |
$ 1,348 |
49 |
$ 8,870 |
39 |
|
Wisconsin |
29.92% |
16 |
$ 2,615 |
26 |
$ 8,739 |
40 |
|
Wyoming |
20.14% |
44 |
$ 2,285 |
34 |
$ 11,350 |
20 |
|
Dist. of Columbia |
26.93% |
$ 4,502 |
$ 16,720 |
|||
May 25, 2010 in Tax, Think Tank Reports | Permalink
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Comments
Not sure how helpful these data are, specifically the middle column about average deductions. Since state income taxes are deductible, this column is largely just telling us about which states have the highest/lowest income taxes, regardless of the mortgage interest deduction.
Posted by: Jeremy Bearer-Friend | May 25, 2010 8:45:40 PM
The reason why the data is helpful is that it identifies who it is that is benefitting by deducting their mortgage interest from their income taxes. It is overwhelmingly a benefit to residents of California, Maryland, Virginia, Connecticut, and New Jersey. If you live in West Virginia, for example, logically you should be seeking a change in the law to end mortgage interest deductions.
Posted by: Les | May 26, 2010 1:00:46 PM
This chart is just a reflection of state by state property values.
Posted by: joeindc44 | May 27, 2010 5:44:11 PM




