The mortgage interest deduction only helps if you itemize. For many homeowners, the standard deduction is worth more, so it pays to run the numbers.
Homeowners often hear that mortgage interest is tax-deductible. That’s true, but it only lowers your tax bill if you itemize, and many households are better off with the standard deduction.
Itemize or not?
You choose between the standard deduction and itemizing your deductions, such as mortgage interest, state and local taxes and charitable gifts. Itemizing only helps when the total is larger than your standard deduction.
Example: a married couple paying $9,000 in mortgage interest, $6,000 in property taxes and $3,000 in donations has $18,000 of itemized deductions. That’s well below the standard deduction for a married couple, so the mortgage interest deduction wouldn’t change their tax bill.
The limits
- Acquisition debt: interest is deductible on up to $750,000 of mortgage debt ($375,000 if married filing separately) used to buy, build or substantially improve your main or second home. The 2025 tax law made this limit permanent; older loans may fall under the earlier $1 million limit.
- Home equity debt: interest counts only when the money was used to buy, build or substantially improve the home securing the loan. See HELOC or home equity loan for how those loans work.
Mortgage insurance is back
Mortgage insurance premiums couldn’t be deducted from 2022 through 2025. From 2026, they can again be treated as mortgage interest for people who itemize, subject to the IRS rules for the deduction. That matters for buyers who put down less than 20%, as explained in down payments and PMI.
Keep your Form 1098. It lists the interest you paid, and often your points and mortgage insurance, and it’s what your tax software or preparer will ask for.
Get advice for your situation
Tax rules have conditions and exceptions, especially for rental property, second homes and refinances. IRS Publication 936 covers the details, and a tax professional can tell you whether itemizing makes sense for you.
The short version
- You can deduct mortgage interest only if you itemize deductions instead of taking the standard deduction.
- Interest is deductible on up to $750,000 of mortgage debt used to buy, build or improve your home; this limit is now permanent.
- Mortgage insurance premiums can be deducted again starting with 2026, for people who itemize and meet the IRS rules.
Readers also ask
What form shows my mortgage interest?
Your servicer sends Form 1098 early each year, showing the interest you paid and often points and mortgage insurance.
Are points deductible?
Points paid on a loan to buy your main home are often deductible in the year paid. Points on a refinance are usually deducted over the life of the loan.
Are property taxes deductible?
Yes, as part of state and local taxes, which are subject to an overall cap. The cap was raised starting in 2025, with limits for higher incomes.
This guide is general information about U.S. mortgages, not financial, tax or legal advice. Loan terms depend on the lender and on your credit, income and property, so confirm the details with your lender, and see consumerfinance.gov for official guidance.
