Renters often miss out on the significant tax breaks that homeowners enjoy—like the mortgage interest deduction and capital gains exemption—both of which can save thousands. While renters don’t get a federal tax break, there is good news. There are 23 states that offer renter’s tax credits or deductions that could put some cash back in your pocket at tax time.
Whether you’re living in an apartment in Phoenix, AZ or a rental in Denver, CO, you might be eligible for some extra returns come tax time. If you’re wondering whether you qualify and how much you could save, this Rent.com article will break down everything you need to know.
To start, here’s a quick overview of states that provide tax benefits to renters:
What is a renter’s tax credit and who can claim it?
A renter’s tax credit is a state-level tax benefit that provides financial relief to renters. Eligibility criteria vary by state, but commonly include:
- Residency: Being a resident of the state where you’re claiming the credit.
- Lease responsibility: Your name must be on the lease, making you legally responsible for paying rent.
- Income limits: Many states impose income thresholds to qualify.
- Taxpayer status: You cannot be claimed as a dependent on someone else’s return.
- Property tax status: Your property owner paying taxes on the property in which you rented.
This baseline is just the beginning, and each state has its own set of rules when it comes to a rent tax deduction. Understanding the specifics within your own state is important. Let’s look at the states that offer a renter’s tax credit.
States that offer a renter’s tax credit
1. Arizona
Credit: Tax credit based on rent or property taxes
Requirements:
- Lived in Arizona for the entire year
- Paid rent or property taxes on a primary residence
- Age 65 or older
- Income limit: $3,751 (single) / $5,501 (joint)
2. California
Credit: Up to $60 (single) / $120 (joint) tax credit for renters
Requirements:
- Paid rent in the state for at least six months
- Income limit: $50,746 (single) / $101,492 (joint)
- Doesn’t live in a tax-exempt property
- Not a claimed dependent
3. Colorado
Credit: Up to $1,044 tax rebate for renters
Requirements:
- Lived in Colorado for the entire year
- Age 65 or older, or meets other age or disability-based qualifications
- Income limit: $18,026 (single) / $23,345 (joint)
- Not a claimed dependent
4. Connecticut
Credit: Up to $900 tax rebate for renters
Requirements:
- Lived in Connecticut for the entire year
- Age 65 or older, or meets disability or surviving spouse qualifications
5. Hawaii
Credit: $50 tax credit per claimed exemption for renters
Requirements:
- Lived in Hawaii for at least nine months and is a legal resident of the state
- Not claimed as a dependent
- Income limit: $30,000
- Paid at least $1,000 in rent
6. Indiana
Credit: Up to $3,000 tax deduction for all Indiana renters (excluding tax-exempt properties) – no requirements.
7. Iowa
Credit: Up to $1,000 tax reimbursement for renters
Requirements:
- Income limit: $25,328
- Age 65 or older
- Didn’t live in tax-exempt housing
8. Maine
Credit: Refundable income tax credit for renters
Requirements:
- Paid eligible expenses on a Maine property
- Income limit: $57,500 (single) / $75,000 (joint)
- Not a claimed dependent
9. Maryland
Credit: Up to $1,000 tax credit for renters
- Requirements:
- Age 60 or older, or meets disability or survivorship qualifications
- Lived in Maryland for at least six months
- Net worth limit: $200,000
- Did not live in tax-exempt or public housing
10. Massachusetts
Credit: Up to $4,000 tax deduction for rent paid on primary residence – no requirements
11. Michigan
Credit: Up to $1,700 tax credit for renters
Requirements:
- Paid eligible costs on primary residence
- Lived in Michigan for at least six months
- Income limit: $67,300
12. Minnesota
Credit: Up to $2,640 refundable tax credit for renters
Requirements:
- Lived in Minnesota for at least 183 days
- Did not live in tax-exempt housing
- Income limit: $73,270
- Not a claimed dependent
13. Missouri
Credit: Up to $750 tax credit for renters
Requirements:
- Age 65 or older, or meets disability or survivorship qualifications
- Income limit: $27,200 (single) / $29,200 (joint)
14. Montana
Credit: Up to $1,150 tax credit for renters
Requirements:
- Age 62 or older
- Income limit: $45,000
- Lived in Montana for at least nine months
- Paid rent on a Montana home for at least six months
15. New Jersey
Credit: Choice between $15,000 tax deduction or $50 refundable tax credit for renters
Requirements:
- Paid rent on primary residence (excluding tax-exempt properties)
16. New Mexico
Credit: Up to $250 tax rebate for renters
Requirements:
- Age 65 or older
- Income limit: $16,000
- Lived in New Mexico for at least six months
- Not a claimed dependent
- Not incarcerated for more than six months
17. New York
Credit: Refundable tax credit for renters
Requirements:
- Household member age 65 or older: up to $375 credit
- All household members under65: up to $75 credit
- Income limit: $18,000
- Lived in New York for the entire year
- Not claimed as a dependent
- Lived in a single residence for at least 6 months
- Paid an average monthly rent worth up to $450 and owned real property assets worth up to $85,000
18. North Dakota
Credit: Up to $400 tax credit based on rent-to-income ratio
Requirements:
- Age 65 or older, or meets disability or survivorship requirements
- Income limit: $70,000
19. Pennsylvania
Credit: Up to $1,000 tax rebate for eligible renters
Requirements:
- Age 65 or older, or meets disability or survivorship requirements
- Income limit: $45,000
20. Rhode Island
Credit: Tax credit
Requirements:
- Age 65 or older, or meets disability or survivorship requirements
- Lived in Rhode Island for the entire year
- Income limit: $37,870
- Did not live in tax-exempt housing
- No unpaid rent
21. Utah
Credit: Up to $1,259 tax rebate for eligible renters
Requirements:
- Age 66 or older, or meets disability or survivorship requirements
- Lived in Utah for the entire year
- Income limit: $40,840
- Not a claimed dependent
22. Vermont
Credit: Tax credit
Requirements:
- Lived in Vermont for the entire year
- Paid rent on a property for at least six months
- Meets income eligibility based on location and family size
- Not a claimed dependent
23. Wisconsin
Credit: Up to $1,168 tax credit for eligible renters
Requirements:
- Legal resident of Wisconsin
- Lived in Wisconsin for the entire year
- Paid rent on a property during the year
- Age 18 or older
- Income limit: $24,680 (or age 62 or older, or meets disability or survivorship requirements)
- Not a claimed dependent
- Did not receive certain tax credits or deductions
Bonus – Washington D.C.
Up to $1,000 tax credit for renters
Requirements:
- Lived in D.C. for the entire year (excluding public housing)
- Income limit: $61,300 (under 70) / $83,700 (70 and older)
- Didn’t live in tax-subsidized housing
- Not a claimed dependent
How to claim a renter’s tax credit
Claiming a renter’s tax credit varies by state, but the process is usually straightforward. First, check your state’s eligibility requirements, including income limits, residency rules, and whether your rental property qualifies. Some states restrict credits to seniors, people with disabilities, or those below certain income thresholds.
To apply, you’ll typically need:
- Proof of rent paid (receipts or a landlord statement)
- Residency documentation (lease agreement or utility bills)
- Income verification (W-2s, 1099s, or tax returns)
Most states require you to file a state tax return and include a specific form for the renter’s credit. Some states allow online filing, while others may require mailed documentation. Once submitted, your credit may be applied to your tax bill, refunded, or issued as a rebate.
Check your state’s tax website for exact details, as eligibility and application deadlines may change annually. If you’re unsure, a tax professional can help ensure you maximize your refund.
Is rent tax deductible?
Generally, rent payments are not tax-deductible on federal income tax returns. This means you can’t claim the rent you pay each month on your tax return.
However, if you use part of your rented home exclusively for business purposes, you may qualify for a home office deduction. This deduction allows you to write off expenses related to the portion of your home used for business. Strict criteria apply, so consult IRS guidelines or a tax professional for details.
Should you take the renter’s tax credit?
If you’re eligible, claiming the renter’s tax credit can provide valuable financial relief. Even if it adds complexity to your tax preparation, the potential savings often outweigh the effort. Consider consulting a tax professional to ensure you maximize your benefits and comply with all requirements.
Remember, tax laws change frequently, so staying informed about the latest provisions in your state is essential.
Rent.com does not provide legal, tax, or financial advice. This article is for informational purposes only and is not a substitute for professional advice from a licensed attorney, tax professional, or financial advisor.
