Rent relief is an option for tenants in some states, and it’s the opposite of a tax.
Here’s how to find out.
The law lets landlords deduct up to half of the cost of rent, including utilities, to cover rent arrears.
But it also allows landlords to deduct up-front maintenance costs and extra rent.
But a new report from RentAssociation.org, a non-profit housing advocacy group, has found that landlords aren’t getting their money back when they do get the money.
It found that rental income tax rates were higher in California, New York, Massachusetts, Connecticut and Vermont than in most states, with the highest rates in New York at 23.2 percent.
But the states with the lowest tax rates are New Jersey (8.5 percent), New York (6.9 percent), Connecticut (5.8 percent) and Rhode Island (5 percent).
According to the report, the federal government’s rental subsidy program pays an average of $9,664 in rent tax relief for a family of four in California and $4,764 in New Jersey.
The average rent for a two-bedroom rental in Connecticut is $2,937, according to the National Association of Realtors, and a three-bedroom is $3,079.
The RentAssociatons report also found that renters in the six states that don’t levy rent tax are paying an average annual tax of $3.11 for every dollar of rent relief they receive.
That means a family paying $10,000 in rent will pay $5,000 more than if they paid the same amount of tax in other states.
Rent relief is also more affordable in many states than rent taxes.
The report found that rents in California are $2.29 higher per year than rent tax refunds in other state.
If you want to know if your rent is tax deductible, you can use the IRS Tax Calculator to find your state’s property tax rate and how much you could claim as rent relief.
Sources: RentAssoc.org , NPR.org