If you own a home and pay mortgage interest, you may be able to claim a mortgage interest deduction on your federal tax return. However, you must itemize your deductions on Schedule A instead of taking the standard deduction to receive a tax benefit.
Mortgage Interest Deduction Limits for 2026
The amount of mortgage interest you can deduct depends on when your mortgage was originated:
- Mortgages originated after December 15, 2017: Interest is generally deductible on up to $750,000 of qualified mortgage debt ($375,000 if Married Filing Separately). The One Big Beautiful Bill Act made this limit permanent.
- Mortgages originated on or before December 15, 2017: Interest remains deductible on up to $1,000,000 of qualified mortgage debt ($500,000 if Married Filing Separately).
Qualified mortgage debt includes loans used to buy, build, or substantially improve your main home or second home.
Are Home Equity Loan and HELOC Interest Deductible?
Interest paid on a home equity loan or home equity line of credit (HELOC) is only deductible when the loan proceeds are used to buy, build, or substantially improve the home that secures the loan. Interest used for personal expenses, such as paying off credit cards, purchasing a vehicle, or funding vacations, is not deductible. The One Big Beautiful Bill Act permanently extended this rule.
New for 2026: Mortgage Insurance Premiums May Be Deductible
Beginning with the 2026 tax year, certain mortgage insurance premiums are once again deductible as qualified residence interest. This includes:
- Private Mortgage Insurance (PMI)
- FHA Mortgage Insurance Premiums (MIP)
- VA Funding Fees
- USDA Guarantee Fees
Income limitations may reduce or eliminate this deduction for higher-income taxpayers.
Why Isn't My Mortgage Interest Increasing My Refund?
Many taxpayers are surprised when entering mortgage interest does not increase their refund. The most common reason is that their itemized deductions do not exceed the standard deduction.
For 2026, the standard deduction amounts are:
- Single or Married Filing Separately: $16,100
- Married Filing Jointly or Qualifying Surviving Spouse: $32,200
- Head of Household: $24,150
If your total itemized deductions, including mortgage interest, state and local taxes, charitable contributions, and other deductible expenses, do not exceed your standard deduction, the IRS automatically gives you the larger standard deduction instead. In that case, your mortgage interest will not reduce your taxable income.
For prior-year standard deduction amounts, see our article on Standard Deduction Amounts.
How Do I Calculate My Deductible Mortgage Interest?
If your total qualified mortgage debt exceeds the applicable limit ($750,000 for most newer mortgages or $1,000,000 for grandfathered mortgages), you may not be able to deduct all of your mortgage interest.
In these situations, you'll need to calculate the deductible portion of your interest using the worksheet in IRS Publication 936, Home Mortgage Interest Deduction. The IRS uses a ratio based on your average mortgage balance to determine the deductible amount. Enter the allowable interest on Schedule A (Form 1040).
For detailed calculations and worksheets, refer to IRS Publication 936.