Caps on Mortgage Interest, Property Tax Deductions Included in Republican Tax Reform Package

The mortgage interest deduction would be capped, as would property tax deductions, under a sweeping tax reform package proposed today by Republicans.

1 minute read

November 2, 2017, 12:00 PM PDT

By James Brasuell @CasualBrasuell


Capitol Hill

Julie Clopper / Shutterstock

"Republican lawmakers unveiled the most sweeping rewrite of the tax code in decades on Thursday," report Jim Tankersley, Thomas Kaplan, and Alan Rappeport.

The details of the proposed Republic tax reform package include long-awaited positions regarding the mortgage interest deduction, which the package would cap at $500,000. The package also takes positions on matters of local and state control regarding taxes, which include property taxes:

One of the biggest flash points will be how the bill treats the state and local tax deduction, which lawmakers are proposing to limit to property taxes and cap at $10,000. That will not be enough for Republicans in some high-tax states, where middle-class families make heavy use of the deduction, which currently applies to state and local income taxes and general sales taxes as well as property taxes.

The article includes a lot more details about the tax reform package announced today—most of which will have far less direct consequence for the built environment of cities and communities around the United States. The Republicans' position on the mortgage interest deduction and the property tax deduction are likely still under negotiation, with powerful industry groups like the National Association of Home Builders opposing changes that could make it more expensive to own property. 

Thursday, November 2, 2017 in The New York Times

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A swamp in South Carolina with tall pale trees and Spanish moss in the water.

Satanic place names

From streams and lakes to valleys and canyons, I mapped more than 1,000 places named after the Devil.

October 31 - The Daily Yonder

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters

 A bridge stretches across the Missouri River at Chamberlain, South Dakota.

Want to study the Missouri River? Soon, you may need unanimous approval from 10 states

Legislation would require 10 governors’ permission to study or build projects moving water outside the basin.

October 30 - South Dakota Searchlight