Tax deductions for homeowners can add up to thousands of dollars, but claiming them is worth the trouble only if all your itemized deductions exceed the IRS standard deduction.
The standard deduction is a specific dollar figure you can subtract from your adjusted gross income on your federal taxes. The deduction, set each year by the IRS, varies based on tax-filing status and is typically allowed without question.
Standard deduction for the 2026 tax year
The standard deduction for the 2026 tax year (for taxes due in April 2027) is:
- $32,200 for married couples filing jointly
- $16,100 for single filers and married individuals filing separately
- $24,150 for heads of households
Itemized deductions are for certain expenses permitted by the IRS to reduce your taxable income. If you itemize, you’ll need to keep careful records in case of an IRS audit.
If the sum of the deductions you qualify for is more than the standard deduction, then itemize to reduce your tax bill. Here are the tax deductions you may be able to claim as a homeowner.
Mortgage interest
This is usually the biggest tax deduction for homeowners who itemize. A portion of every mortgage payment goes toward interest on the loan. You can deduct the interest you paid up to a limit, which depends on when you took out the mortgage.
- Dec. 16, 2017, and later: You can deduct the interest on up to $750,000 of mortgage debt (or up to $375,000 if you're married and filing separately).
- Oct. 14, 1987, through Dec. 15, 2017: You can deduct the interest on up to $1 million of mortgage debt ($500,000 if married and filing separately).
- Oct. 13, 1987 or before: You can deduct all the mortgage interest.
Your mortgage servicer will send a statement each year on Form 1098 showing how much interest you paid.
» MORE: Get more details about the mortgage interest deduction
Home equity loan and HELOC interest
You can deduct interest you’ve paid on home equity loans and home equity lines of credit. However, this only applies if you use the borrowed money to “buy, build, or substantially improve” the home that secures the loan, according to IRS rules.
This restriction was introduced by the 2017 Tax Cuts and Jobs Act and was originally set to expire after the 2025 tax year. However, the change was made permanent when the One Big Beautiful Bill was passed in July 2025. The deduction will also remain subject to certain dollar limitations.
Your home equity loan or HELOC debt counts toward the total mortgage debt limit for deducting interest. If your first mortgage is over the deductible limit, then the home equity loan interest won't be deductible.
» MORE: Learn more about home equity loans and HELOCs
Discount points
Discount points are the fees you can pay when your mortgage closes to lower your interest rate. One discount point costs 1% of the mortgage amount and can reduce your interest up to 0.25%, depending on the loan type. That means reducing your loan by one discount point on a $350,000 loan would cost you $3,500.
Discount points count as mortgage interest and are deductible, but in most situations, you can't deduct the full amount in the year they were paid. Instead, you deduct a portion of them each year over the life of the loan.
The term "points" can be confusing because some lenders call their fees "loan origination points." Those points go toward paying the lenders' costs for providing the loan, and they are not tax-deductible. Only discount points paid to reduce the interest rate can be deducted.
Property taxes
You can get a tax break for paying property taxes, but there's a limit. For the 2026 tax year, you may deduct up to $40,400 ($20,200 if married and filing separately) of property taxes in combination with state and local income taxes or sales taxes.
» MORE: How property taxes work
Home office expenses
You may deduct home office expenses if you're self-employed and use part of your home regularly and exclusively for your business. Full-time, W-2 employees who work from home cannot claim a home office deduction. However, if you are an independent contractor or freelancer and you pay your own Medicare and Social Security taxes, you can claim this deduction.
You can use the IRS "simplified method" or your actual expenses to figure out the deduction amount for home office expenses. The IRS website provides details about determining whether your home office qualifies for a tax deduction and has worksheets for calculating the deduction amount.
Medically necessary home improvements
When figuring out your medical expense deductions, you can include the cost of installing health care equipment or other medically necessary home improvements that benefit you, your spouse or a dependent.
Permanent improvements that increase your home's value are only partly deductible. The deductible cost is reduced by the amount of the property value increase.
Many improvements to make a home more accessible, such as constructing entrance ramps, widening doorways or installing railings and support bars, usually don't increase the value of a home and can be fully deducted.
Homeowner costs that aren't tax-deductible
Here's a roundup of expenses homeowners can't deduct:
- Insurance
- Payments applied to the mortgage principal
- Wages paid to domestic help
- Depreciation
- Utilities
- Most costs associated with settlement and closing
- Forfeited deposits, down payments or earnest money
- Internet service
- Homeowners’ association fees or similar costs
- Home repairs
Get tax help for complex issues
Doing your own taxes may make sense if you have a simple return, but consider getting help from a tax preparer if your situation is complex. Taxes can get more complicated during major life changes, such as retirement or divorce, or if you own a small business or have complicated investments.
Explore more on
