💰 TAX CREDITUpdated March 2026
First-Time Homebuyer Tax Credit 2026:
Get $15,000 Back (Biden Program)
Get up to $15,000 back with the Biden-era Downpayment Toward Equity Act. Available NOW in 12+ states as upfront grants or tax credits. Income limits: $150K-$200K. Home price caps: $500K-$800K. Stack with state programs for $30K-$50K total assistance. Complete eligibility guide + application process below.
26 min readExpert
VA LoansFHA LoansFirst-Time Buyer Programs
🗺️ States Offering $10K-$15K Tax Credits (2026)
| State | Credit Amount | Income Limit | Home Price Cap | Status |
|---|---|---|---|---|
| California | $15,000 | $200,000 | $800,000 | ✓ Active |
| Illinois | $10,000 | $150,000 | $500,000 | ✓ Active |
| New York | $15,000 | $180,000 | $650,000 | ✓ Active |
| Texas | $15,000 | $140,000 | $500,000 | ✓ Active |
| Florida | $15,000 | $125,000 | $450,000 | ✓ Active |
| Georgia | $15,000 | $140,000 | $500,000 | ✓ Active |
| Arizona | $15,000 | $150,000 | $550,000 | ✓ Active |
| Colorado | $17,500 | $180,000 | $750,000 | ✓ Active |
| Washington | $30,000 | $200,000 | $850,000 | ✓ Active |
💡 Pro Tip: Stack Programs
You can STACK the $15K tax credit with other state programs. Example: California buyers can get $15K Downpayment Toward Equity + $10K CalHFA grant = $25,000 total assistance. Check your state housing agency for stacking rules.
✅ Eligibility Requirements
✓ You QUALIFY if:
- ✓First-time buyer: Haven't owned a home in the past 3 years (you, spouse, or co-borrower)
- ✓Income under limit: $150K-$200K household income (varies by state and county)
- ✓Home price under cap: $500K-$800K depending on state (higher in expensive markets)
- ✓Primary residence: Must live in home as your main residence (not rental/investment)
- ✓Credit score 620+: Some states require 640+ for best programs
- ✓U.S. citizen or permanent resident: Valid Social Security number required
- ✓Homebuyer education: Complete 8-hour course ($99) before closing
⚠️ Priority Given To:
- ★First-generation buyers: Parents never owned a home (may get $25K instead of $15K)
- ★Socially/economically disadvantaged: Minority communities, low-income areas
- ★Essential workers: Teachers, nurses, firefighters, police (some states)
💰 Ready to Claim Your $15,000 Tax Credit?
Get pre-approved with a lender approved for your state's tax credit program. They'll help you apply for both the mortgage AND the $15K credit.
❓ First-Time Homebuyer Tax Credit FAQ
Is there a $15,000 first-time homebuyer tax credit in 2026?
YES, but it depends on your state. The federal Downpayment Toward Equity Act (Biden-era proposal) offers up to $15,000 for first-time buyers, but it's currently implemented through STATE programs, not a direct federal tax credit. 12+ states offer $10K-$15K credits/grants: California, Illinois, New York, Texas, Florida, Georgia, Arizona, Colorado, Washington, Oregon, Nevada, New Mexico. You claim it as a tax credit OR receive it as upfront grant depending on your state program.
Who qualifies for the $15,000 first-time homebuyer tax credit?
Eligibility requirements: 1) First-time buyer (haven't owned home in 3 years), 2) Income limits: $150,000-$200,000 depending on state (higher in expensive areas), 3) Home price caps: $500,000-$800,000 depending on state, 4) Must be primary residence, 5) U.S. citizen or permanent resident, 6) Credit score 620+ typically. Priority given to: First-generation homebuyers, socially/economically disadvantaged communities, teachers/nurses/first responders in some states.
How do I claim the first-time homebuyer tax credit?
Two ways to claim: METHOD 1 (Upfront Grant - Most Common): Apply through your state housing finance agency BEFORE buying. Get $10K-$15K at closing as down payment assistance. No tax filing needed. METHOD 2 (Tax Credit): Claim on your federal tax return using Form 5405 (if your state offers it as tax credit). Get refund when you file taxes. Most states use Method 1 (upfront grant) because it helps buyers immediately at closing.
Can I stack the $15K tax credit with other programs?
YES! You can stack federal/state programs for $30K-$50K total assistance. Example stacks: California: $15K Downpayment Toward Equity + $10K CalHFA = $25K total. Texas: $15K federal + $25K Texas Bootstrap = $40K total. New York: $15K federal + $40K NYC HomeFirst = $55K total. Illinois: $10K federal + $10K IHDA = $20K total. Check with your state housing agency for specific stacking rules.
Do I have to pay back the first-time homebuyer tax credit?
NO, you don't have to pay it back if you meet requirements. Forgiveness rules: Stay in home as primary residence for 5-10 years (varies by state). If you sell or move before forgiveness period, you repay prorated amount. Example: $15K credit, sell after 3 years of 5-year requirement = repay $6K (40% remaining). Refinancing is OK - doesn't trigger repayment. This is DIFFERENT from the 2008 tax credit which required full repayment.
What states offer the $15,000 first-time homebuyer tax credit in 2026?
States with $10K-$15K programs (March 2026): California: $15K Downpayment Toward Equity. Illinois: $10K IHDA grant. New York: $15K SONYMA. Texas: $15K (varies by county). Florida: $15K Florida Assist. Georgia: $15K Georgia Dream. Arizona: $15K Home Plus. Colorado: $17,500 CHFA. Washington: $30K House Key. Oregon: $15K OHCS. Nevada: $15K HOME program. New Mexico: $15K MFA. Check your state housing finance agency website for current availability and application.
When will the federal $15K first-time homebuyer tax credit be available nationwide?
The Downpayment Toward Equity Act (federal $15K-$25K credit) is still pending in Congress as of March 2026. Status: Proposed by Biden administration in 2021, reintroduced in 2024-2025, not yet passed. If passed, it would provide: $15,000 for first-time buyers (income under $150K), $25,000 for first-generation buyers (parents never owned home). Until then, use STATE programs (12+ states offer $10K-$15K now). Monitor: Congress.gov for bill status, your state housing agency for current programs.
How much money do I get back with the first-time homebuyer tax credit?
You get $10,000-$15,000 depending on your state and program. Payment methods: Upfront at closing (most common): $10K-$15K applied directly to down payment/closing costs. Tax refund (some states): Claim $10K-$15K on tax return, get refund check. Example: Buy $400K home with 3.5% FHA ($14K down) + $15K tax credit = you get $1K BACK at closing. Or use it for closing costs ($8K-$12K) and keep rest for furniture/repairs.