Is Mortgage Interest Tax Deductible? (2026)
Is mortgage interest tax deductible? Yes, but only if you itemize. The mortgage interest deduction lets you subtract the interest you pay on a home loan from your taxable income, but you only benefit if your itemized deductions add up to more than the standard deduction. Because the 2026 standard deduction is large ($16,100 single / $32,200 married), most homeowners now take the standard deduction and get no extra benefit from their mortgage interest.
How the deduction works
You can deduct interest on acquisition debt, money you borrowed to buy, build, or substantially improve your main or second home, up to a loan limit:
| Mortgage taken out | Interest deductible on debt up to |
|---|---|
| After Dec 15, 2017 | $750,000 ($375,000 if married filing separately) |
| On or before Dec 15, 2017 | $1,000,000 (grandfathered) |
The $750,000 cap was set by the 2017 Tax Cuts and Jobs Act and made permanent by the OBBB Act of 2025. Your lender reports the interest you paid on Form 1098 each January.
Why most people no longer benefit
This is the key point. To deduct mortgage interest you must itemize on Schedule A, and itemizing only helps if your total itemized deductions (mortgage interest + state and local taxes + charitable gifts + medical, etc.) exceed the standard deduction. Since the standard deduction roughly doubled in 2018, the share of taxpayers who itemize fell from about 30% to under 10%. So while the deduction still exists, most homeowners take the standard deduction and their mortgage interest changes nothing.
You are most likely to benefit if you have a large, recent mortgage (high interest in the early years) and significant other itemized deductions, often higher earners in expensive housing markets.
What about HELOCs and second mortgages?
Interest on a home equity loan or HELOC is deductible only if you used the money to buy, build, or substantially improve the home that secures the loan. If you used a HELOC to pay off credit cards or buy a car, that interest is not deductible. The combined debt still counts toward the $750,000 limit.
What is not deductible
- Interest on a mortgage for a third home
- Principal payments (only the interest portion counts)
- Homeowners insurance, title insurance, and most closing costs
- HELOC interest used for personal expenses
Bottom line
- Mortgage interest is deductible, on up to $750,000 of acquisition debt, but only if you itemize.
- With the 2026 standard deduction at $16,100 / $32,200, most homeowners do better taking the standard deduction and see no benefit.
- HELOC interest counts only when the loan improves the home.
See how much interest you will actually pay with our mortgage calculator, and whether itemizing beats the standard deduction in the federal tax calculator. This article is general information, not tax advice.
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Rakesh Choudhary, PhD · Founder & Editor
Rakesh Choudhary, PhD, is the founder of Calcinum. A sociologist by training, he builds every calculator on the site and maintains its 2026 federal and state tax data, sourced from primary references (IRS, SSA, state revenue departments, DFAS) and re-verified whenever the law changes. Tax data is sourced from primary references (IRS, state revenue departments, SSA, DFAS) and re-verified annually each tax year.
Editorial standards: Every article cites primary sources and is reviewed against current tax-law data before publication. See our full methodology & accuracy for sourcing and review process.
Not financial advice: This article is for general informational purposes only. Calcinum does not provide regulated tax, legal, or investment advice. Consult a qualified professional for decisions specific to your situation.