What's Tax Deductible in 2026? The Complete Guide

Tax deductions reduce your taxable income, which lowers the amount of tax you owe. But not everything is deductible — and many deductions only apply if you itemize instead of taking the standard deduction.

In 2026, the standard deduction is $16,100 (single), $32,200 (married filing jointly), or $24,150 (head of household) after the OBBB Act increase. You should only itemize if your total deductions exceed these amounts. About 90% of filers take the standard deduction because the 2017 Tax Cuts and Jobs Act nearly doubled it.

Itemized deductions are claimed on Schedule A of Form 1040. They include state and local taxes, mortgage interest, charitable contributions, and medical expenses (above a threshold). Below, we cover the most commonly searched deductions — what’s deductible, what isn’t, and the specific conditions and limits you need to know.

Are Property Taxes Deductible?

Yes — if you itemize. Property taxes paid on your primary residence (and other real property) are deductible on Schedule A. However, they fall under the SALT cap (State and Local Tax deduction), which limits your combined state income tax + property tax deduction to $10,000 per year ($5,000 if married filing separately).

This means if you pay $8,000 in property taxes and $6,000 in state income taxes, only $10,000 of the combined $14,000 is deductible. The SALT cap was enacted by the Tax Cuts and Jobs Act in 2017 and was expected to expire after 2025 but was extended by the OBBB Act in 2025. Homeowners in high-tax states like New Jersey, Illinois, and Connecticut are most affected.

Use our property tax calculator to estimate your annual property tax by state, and our tax calculator to see how the SALT deduction affects your federal tax bill.

Are 529 Contributions Tax Deductible?

Not on your federal return. 529 plan contributions are not deductible for federal income tax purposes. However, over 30 states offer a state income tax deduction or credit for 529 contributions — limits vary from $2,000 to unlimited depending on the state.

The real tax benefit of 529 plans is in the growth and withdrawals: the money grows tax-free, and withdrawals for qualified education expenses (tuition, room and board, books, computers) are also tax-free at both the federal and state level. Starting in 2024, unused 529 funds can be rolled over to a Roth IRA for the beneficiary (up to $35,000 lifetime, subject to annual Roth contribution limits).

Some of the most generous state deductions include: Indiana (20% tax credit, up to $1,500), Utah ($238 per beneficiary credit), Vermont (10% credit, up to $250), and Oregon (up to $300 credit per contributor).

Are Health Insurance Premiums Tax Deductible?

It depends on your employment status and how you pay.

• Self-employed individuals can deduct 100% of health insurance premiums as an above-the-line deduction on Schedule 1 (no itemizing required). This includes premiums for yourself, your spouse, and dependents. Use our self-employment tax calculator to see how this deduction affects your overall tax liability.
• Employees with employer-sponsored coverage — the premiums you pay through payroll are already deducted pre-tax (via Section 125 cafeteria plans), so you get the tax benefit automatically. You cannot deduct them again on your return.
• If you pay premiums with after-tax dollars and itemize, you can include them as medical expenses on Schedule A — but only the total medical expenses exceeding 7.5% of your AGI are deductible. For someone with a $60,000 AGI, that’s a $4,500 floor before any medical expense is deductible.

Are Medicare Premiums Tax Deductible?

Yes — Medicare Part B premiums, Part D premiums, and Medicare Supplement (Medigap) premiums all qualify as deductible medical expenses. The standard Part B premium in 2026 is $185.00/month ($2,220/year), with higher-income earners paying more through IRMAA surcharges.

If you itemize and your total medical expenses (including Medicare premiums, prescriptions, doctor visits, dental work, and vision care) exceed 7.5% of your AGI, the excess is deductible on Schedule A. Self-employed individuals over 65 can deduct Medicare premiums as part of their self-employment health insurance deduction — without the 7.5% AGI floor — which is significantly more favorable.

Medicare Part A premiums are also deductible if you pay them (most people receive Part A premium-free based on their work history).

Are HOA Fees Tax Deductible?

Generally no — for your primary residence, HOA fees are a personal living expense and not tax deductible. The IRS considers them similar to utility bills or lawn care — a cost of maintaining your home, not a tax-deductible expense.

However, there are three exceptions where HOA fees may become deductible:

1. Rental properties — if you rent out a property, HOA fees are a deductible business expense reported on Schedule E, reducing your rental income.
2. Home office deduction — if you’re self-employed and use part of your home exclusively for business, you can deduct a proportional share of HOA fees (based on the square footage percentage of your office) as part of the home office deduction on Schedule C.
3. Business use of a condo — if you own a condo used primarily for business purposes, HOA fees are deductible as a business expense.

For most homeowners living in their primary residence, HOA fees are simply a non-deductible cost of homeownership.

Is Homeowners Insurance Tax Deductible?

No — homeowners insurance premiums on your personal residence are not tax deductible. This includes hazard insurance, flood insurance, and earthquake insurance when paid for personal use.

There are limited exceptions:

• Home office: Self-employed individuals with a qualified home office can deduct a proportional share of homeowners insurance as a business expense.
• Rental property: If you rent out a property (or part of your home), the proportional insurance cost is deductible on Schedule E.
• PMI (Private Mortgage Insurance): As of 2026, PMI is generally not deductible. Congress has periodically reinstated this deduction (it was available through 2021), but it has not been renewed for the current tax year.

Are Political Donations Tax Deductible?

No — contributions to political candidates, political parties, campaigns, PACs (Political Action Committees), or Super PACs are never tax deductible for federal income tax purposes. This applies to all levels of government — federal, state, and local elections. It doesn’t matter how much you give or which party you support.

This is a common misconception because charitable donations to 501(c)(3) organizations are deductible. Political organizations are classified as 527 organizations, which is a different category entirely. However, contributions to 501(c)(3) nonprofit organizations that engage in nonpartisan voter education, registration drives, or policy research may be deductible as charitable donations — as long as the organization does not campaign for specific candidates.

Are GoFundMe Donations Tax Deductible?

Usually no. The vast majority of GoFundMe campaigns are personal fundraisers — helping individuals with medical bills, education costs, or emergencies. Donations to individuals are considered personal gifts under the tax code, not charitable contributions, and are not tax deductible regardless of the amount or the recipient’s circumstances.

The exception: GoFundMe Charity campaigns organized through a registered 501(c)(3) nonprofit organization. These campaigns are clearly labeled on the GoFundMe platform with a “Charity” badge. Donations to verified charity campaigns are tax deductible, and you’ll receive a tax receipt from the nonprofit. Always verify the campaign type before assuming your donation is deductible.

The same rules apply to other crowdfunding platforms (Kickstarter, Indiegogo, etc.) — personal campaign donations are not deductible; donations to verified 501(c)(3) charities are.

Is Personal Loan Interest Tax Deductible?

No — interest paid on personal loans, credit cards, car loans (for personal use), and other consumer debt is not tax deductible. The Tax Reform Act of 1986 eliminated the personal interest deduction for most consumer loans.

However, interest on certain types of debt remains deductible:

• Mortgage interest — deductible on up to $750,000 of acquisition debt ($375,000 if married filing separately) on Schedule A. This is one of the biggest itemized deductions for homeowners.
• Student loan interest — up to $2,500 per year as an above-the-line deduction (no itemizing required), with income phaseouts starting at $80,000 single / $165,000 married.
• Business loan interest — if you use personal loan proceeds for legitimate business expenses, the interest becomes a deductible business expense on Schedule C.
• Investment interest — interest on margin loans or loans used to purchase taxable investments is deductible on Schedule A, limited to your net investment income.

Other Common Deductions Worth Knowing

• Charitable donations: Deductible if you itemize. Cash donations up to 60% of AGI; appreciated property up to 30% of AGI.
• 401(k) and IRA contributions: Not an itemized deduction — these reduce your taxable income directly. Use our 401k calculator to see the tax impact.
• State income taxes: Deductible if you itemize, but subject to the $10,000 SALT cap (combined with property taxes).
• Medical expenses: Deductible on Schedule A if they exceed 7.5% of your AGI.

Bottom Line

The key question is always: do your total itemized deductions exceed your standard deduction? If not, the standard deduction gives you a larger tax break regardless of individual deductible expenses.

Use our tax calculator to see how deductions affect your total tax liability. For self-employment deductions, try the self-employment tax calculator. And if you’re maximizing retirement savings, our 401k calculator shows how pre-tax contributions lower your taxable income.