AB-1620 • 2026

Personal Income Tax Law: deductions: homeowners’ insurance premiums.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Sanchez
Last action: 2026-03-16
Official status: In committee: Set, first hearing. Referred to suspense file.
Effective date: Not listed

Plain English Breakdown

The official source does not provide details on the specific goals, purposes, or objectives that the bill aims to achieve through the new deduction. It also lacks information about how much money taxpayers will save due to this deduction.

Allowing Deductions for Homeowners' Insurance

AB-1620 allows people to deduct the cost of homeowners’ insurance on their primary residence from their income tax starting in 2026.

What This Bill Does

Allows taxpayers to subtract the amount they pay for homeowners’ insurance on their main home from their taxable income, beginning January 1, 2026.

Who It Names or Affects

Taxpayers who own a primary residence and pay homeowners’ insurance premiums.

Terms To Know

taxpayer: A person or business that pays taxes to the government.
primary residence: The main home where a person lives most of the time.

Limits and Unknowns

This bill only applies for taxable years from January 1, 2026, to December 31, 2030.
It does not specify how much money will be saved by taxpayers due to this deduction.

Bill History

2026-03-16 California Legislative Information
In committee: Set, first hearing. Referred to suspense file.
2026-02-02 California Legislative Information
Referred to Com. on REV. & TAX.
2026-01-23 California Legislative Information
From printer. May be heard in committee February 22.
2026-01-22 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1620, as introduced, Sanchez.
Personal Income Tax Law: deductions: homeowners’ insurance premiums.
The Personal Income Tax Law, in modified conformity with federal income tax laws, generally allows various deductions in computing the income that is subject to the tax imposed by that law.
This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a deduction in computing income for the amount paid or incurred by a taxpayer during the taxable year as premiums on a homeowners’ insurance policy on the taxpayer’s primary residence, as defined.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF