An Act providing tax relief for rent-burdened individuals and families

HD 3696 creates a new tax deduction for Massachusetts renters who pay rent for their primary residence and meet income limits. It allows eligible individuals or households to deduct 50% of their rent, capped at $4,100 annually (adjusted yearly for inflation), but only if household income does not exceed 100% of the local area median income (AMGI) defined by HUD. The deduction applies to single filers, heads of household, and married couples filing jointly for tax years beginning January 1, 2022, or later. This policy directly affects low-to-moderate-income renters in Massachusetts who qualify under the income threshold.