HR 7768
Tax Relief for Renters Act of 2026
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Bill overview
This bill, the Tax Relief for Renters Act of 2026, proposes a new deduction for renters of primary residences. It allows taxpayers to deduct 1/12 of their qualified rent expenses, up to a maximum of $4,000 per year, subject to income limitations. The deduction is intended to be adjusted for inflation starting in 2027, and it will be available to both itemizers and non-itemizers.
Key provisions
- Allows a deduction for 1/12 of qualified rent expenses.
- Maximum deduction of $4,000 per year.
- Deduction is subject to income limitations based on filing status.
- Deduction is adjusted for inflation beginning in 2027.
- Available to both itemizers and non-itemizers.
- Rent expenses are defined as amounts paid or incurred to lease the primary residence.
- The deduction is not treated as a miscellaneous itemized deduction.
Who is affected
- Renters of primary residences
- Taxpayers
- Individuals
- Households with moderate to high incomes
Notable changes
- Creates a new deduction for rent payments.
- Expands the availability of deductions to non-itemizers.
- Modifies existing rules regarding itemized deductions to include the new rent deduction.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Thomas H. Kean
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119th CONGRESS — 2d Session
H. R. 7768
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to establish a deduction for certain amounts paid for rent for a primary residence.
This Act may be cited as the Tax Relief for Renters Act of 2026
.
For purposes of this section, the term qualified rent expenses
means, with respect to a taxable year, amounts paid or incurred to lease the primary residence of the taxpayer during the taxable year.
The deduction allowed under subsection (a) shall not exceed $4,000 for any individual in any taxable year.
For purposes of this paragraph, the term threshold amount
means—
in the case of a joint return or a surviving spouse, $125,000,
in the case of married filing separately, $85,000,
in the case of a head of household, $80,000, or
in the case of any other individual, $75,000.
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2026
for calendar year 2016
in subparagraph (A)(ii) thereof.
If any increase under paragraph (1) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.
The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 225 the following new item:
andat the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting
and, and by adding at the end the following new paragraph:
the deduction provided in section 226.
andat the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting
, and, and by adding at the end the following new paragraph:
the deduction under section 226 (relating to rent payments).