Homeowners Premium Tax Reduction Act of 2026

This bill proposes to amend the Internal Revenue Code of 1986 by creating a new tax deduction for certain homeowners insurance premiums. Specifically, it establishes a new section, 226, allowing individuals to deduct these premiums from their gross income, making it an above-the-line deduction.

Under this new provision, taxpayers can deduct an amount equal to qualified insurance premiums paid or incurred during the taxable year, up to a maximum of $10,000. Qualified insurance premiums are defined as annual policy premiums for homeowners insurance on the individual's principal residence.

By making this an above-the-line deduction, it reduces a taxpayer's adjusted gross income (AGI), potentially impacting other tax calculations. The amendments made by this bill would apply to taxable years ending after the date of its enactment.