3 Ways Homeowners Could Benefit From The 'Big, Beautiful' Bill Sarah Li CainJuly 21, 2025 at 5:01 AM @samanthavaughan / Twenty20.com Now that One Big Beautiful Bill Act (OBBBA) has been signed into law, the final version offers some good, and not so good consequences for Americans.
- - - 3 Ways Homeowners Could Benefit From The 'Big, Beautiful' Bill
Sarah Li CainJuly 21, 2025 at 5:01 AM
@samanthavaughan / Twenty20.com
Now that One Big Beautiful Bill Act (OBBBA) has been signed into law, the final version offers some good, and not so good consequences for Americans. Perhaps there's one silver lining: Certain parts of the bill could benefit homeowners and potentially save them money.
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Some of these are because of provisions that were part of the Tax Cuts and Jobs Act (TCJA) that President Donald Trump signed back in 2017.
Here are some ways you can benefit as a homeowner.
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Lower State and Local Taxes
The OBBBA effectively raises the state and local tax (SALT) deduction to $40,000 for those earning up to $500,000, compared to the previous $10,000 limit, according to the Tax Foundation. Currently, this SALT deduction is set to expire in 2030.
While this provision isn't specifically just for homeowners, they could benefit you to deduct the amount of state and local taxes you pay when you file your federal tax return.
Meaning, if you pay a high amount in state income taxes and property bills, this extended SALT cap could save you a significant chunk each year. According to Newsweek, it could even affect the housing market in these general areas, making homes more affordable there.
For example, Realtor.com reports that around 40% of homeowners in New Jersey pay over $10,000, with New York coming in a close second at around 26%. So if you live in states that don't have high taxes, or don't have a state income tax, you may not benefit as much from this provision.
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Lower Homeowners' Taxes
According to the IRS, the ability to deduct mortgage insurance from your itemized federal tax return was phased out, until now.
This type of insurance kicks in for homeowners who make a down payment of less than 20% for conventional mortgages, per the Consumer Financial Protection Bureau. In 2021, the last year when you were able to qualify for this itemized deduction, U.S. Mortgage Insurers found that homeowners received a $2,364 average deduction.
Remember, you will need to itemize your deductions in order to take advantage of the opportunity to deduct what you paid in mortgage insurance. For reference, the standard deduction has increased to $15,750 for single taxpayers, $31,500 for spouses filing jointly and $23,625 for head of household.
There are also other itemized deductions that have been limited, so take the time to figure whether you'll be able to save more itemizing or take the standard deduction. In other words, if the standard deduction is higher than what you have in itemized deductions, you're better off foregoing the mortgage insurance deduction.
More Affordable Housing
Opportunity Zones are areas designated in the U.S. that are considered low or economically distressed areas. Businesses that invest in these areas receive tax incentives to encourage more growth.
One of these investments include real estate and housing. While many build affordable rental housing, there is the opportunity to create more affordable homes for purchase, as well, per the Mortgage Bankers Association. Considering that in the past few years the real estate market has seen low inventory levels, this incentive could mean those who can't afford a home before, can.
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