Individual Housing Act of 1981

Individual Housing Act of 1981 - Amends the Internal Revenue Code to allow a deduction for cash contributions to a savings account created or organized for the benefit of the taxpayer (or the taxpayer and spouse if married) for the exclusive purpose of purchasing a residence. Limits the maximum annual deduction to $3,000, with a maximum lifetime deduction of $15,000. Provides for separate limitations in the case of married individuals. Excludes distributions from such account from gross income as long as they are used exclusively for the purchase or construction of a residence for the taxpayer. Imposes a ten percent surtax on distributions from an individual housing account which are not used for the purchase or construction of a residence for the taxpayer.

Provides a tax deduction for an individual who purchases a new home for personal purposes in an amount equal to the sales taxes paid on items used in the construction of such home.

Provides a refundable tax credit of an amount equal to lost interest on required real property tax prepayments. Stipulates that such lost interest shall be an amount equal to interest computed at the rate of 5.5 percent. Limits such tax credit to $200.