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Tax Relief for Renters Act: New Income Tax Deduction for Rent Payments

This bill introduces a new tax deduction for individuals who pay rent for their primary residence, allowing them to reduce their taxable income. It aims to provide financial relief to renters by lowering their overall tax burden.
Key points
Renters can deduct up to $4,000 per year from their taxable income for rent paid on their main home.
The deduction is available to individuals earning below specific income limits (e.g., $75,000 for single filers and $125,000 for joint filers).
Even taxpayers who take the standard deduction instead of itemizing can benefit from this new tax break.
The maximum deduction amount and income thresholds will be adjusted annually to keep up with inflation.
The changes are set to apply to tax years beginning after December 31, 2026.
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Status:
Introduced
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Additional Information
Print number: 119_HR_7768
Sponsor: Rep. Landsman, Greg [D-OH-1]
Process start date: 2026-03-03