🏠Mortgage Interest Deduction Overview (2025)
Generally, you can deduct mortgage interest on your tax return if:
- The loan proceeds were used to buy, build, or substantially improve your home, and
- The loan is secured by your main home or a second home
This includes interest paid on:
- First and second mortgages
- Home equity loans
- Refinanced mortgages
You should typically receive Form 1098 from your lender, which reports the amount of mortgage interest paid in Box 1.
đź’° Deduction Limits
- $750,000 cap on mortgage debt for loans taken out after December 15, 2017
- $375,000 cap for married filing separately
- $1 million cap applies to mortgages taken out before December 16, 2017
🧾 Eligibility Requirements
To claim the mortgage interest deduction:
- You must itemize deductions using Schedule A of Form 1040
- The loan must be secured by a qualified residence (your primary or secondary home)
- Interest on home equity loans is deductible only if the funds were used to buy, build, or improve the home