The Home Mortgage Interest Deduction: What It Is and How It Works
The mortgage interest deduction allows homeowners to lower their tax burdens by itemizing their mortgage interest expenses. But it’s not available to everyone — taxpayers who claim the standard deduction on their tax return aren’t eligible for the deduction. Below, we’ll explain how this tax break works so you can decide if it’s right for you.
- The mortgage interest tax deduction is based on your loan amount and closing date.
- You can deduct up to $750,000 if you’re a single taxpayer or married filing jointly. The maximum is $375,000 if you’re married filing separately.
- You may qualify to deduct the mortgage interest on your primary residence, second home and rental property.
How does the mortgage interest deduction work?
The mortgage interest deduction is a tax break that eligible homeowners can use to deduct the interest they’ve paid on their mortgage debt from their tax bill. You may qualify for the mortgage interest deduction if you have a mortgage on a house, condo, mobile home, houseboat or similar property type.
One major caveat with this deduction is that you must itemize your taxes instead of taking the standard deduction in order to qualify. Even if you can claim the deduction, it doesn’t necessarily mean you should — some homeowners find that sticking with the standard deduction actually saves them more than itemizing.
The standard deductions for tax year 2025 are:
$15,750 for individuals and married couples filing separately
$31,500 for married couples filing jointly
$23,625 for unmarried heads of households
The standard deductions for tax year 2026 are:
$16,100 for individuals and married couples filing separately
$32,200 for married couples filing jointly
$24,150 for unmarried heads of households
What is the mortgage interest deduction limit?
The maximum mortgage interest deduction depends on your tax filing status, mortgage amount and the date you took out the loan. If you first borrowed your mortgage after Dec. 16, 2017, the deduction limit is $750,000 if you’re married filing jointly or $375,000 for married taxpayers filing separately. In other words, you can deduct the interest paid on the first $375,000 to $750,000 of your mortgage debt. This covers many homeowners with the married filing jointly tax status, since the average home purchase price was about $513,000 in Q2 2025.
To determine the amount of your deduction, here are some key dates and numbers to know:
| Tax filing status | Mortgages taken out after Dec. 16, 2017: | Mortgages taken out before Dec. 16, 2017: |
|---|---|---|
| Single Married filing jointly | $750,000 | $1,000,000 |
| Married filing separately | $375,000 | $500,000 |
Form 1098 is the official IRS form that is used to report your annual mortgage interest payments. Each year, your lender must send you this form by the end of January if you paid more than $600 in mortgage interest during the year.
Let’s say you took out a $400,000 mortgage in 2024. Your annual interest payments totaled $15,000 this year. Since you took out your mortgage after December 2017 and you file taxes jointly with your spouse, you can deduct interest paid on up to $750,000. This means you can deduct the full $15,000 on your tax return — if you itemize.
Mortgage interest deduction vs. standard deduction: Which is right for you?
Whether you should itemize and claim the mortgage loan interest deduction or take the standard deduction depends on what will result in a larger deduction and ultimately, bigger tax savings. To figure that out, you must compare your total itemized deductions, including mortgage interest, to the standard deduction for your tax filing status.
For example, let’s say all of your itemized deductions, including mortgage interest payments, charitable donations and other eligible expenses total $20,000. Because of your “married filing jointly” tax status, you qualify for a standard deduction of $31,500. In this case, since the standard deduction is higher than your itemized deductions, you’d save more on your taxes if you took the standard deduction.
If you’re still unsure, speak with a qualified tax professional to help determine the right option for your situation.
How to claim the mortgage interest tax deduction
1. Review your 1098 tax form
Check the amount of interest listed as paid in Box 1 of each copy of Form 1098 you receive. You should receive a separate 1098 for each loan you’re still paying off.
2. Identify additional deductions
While you’re at it, you should check to see if you qualify for tax breaks besides your mortgage interest, such as home improvements you completed. You may want to hire a tax professional to help you identify the deductions you may qualify for.
3. Decide whether to itemize or take the standard deduction
Compare the standard deduction amount to your itemized deductions (including your total deductible mortgage interest). If the total itemized deductions are more, then you’ll save money by itemizing deductions. To itemize, fill out Schedule A of Form 1040 and include it in your tax return.
Frequently asked questions
Yes, mortgage interest is deductible for qualifying taxpayers. However, you’ll need to itemize your taxes (instead of taking the standard deduction) to claim the mortgage interest deduction.
You can deduct mortgage interest up to certain limits set by the IRS.
If you took a mortgage out after Dec. 16, 2017:
- Married filing jointly: $750,000
- Married filing separately: $375,000
If you took a mortgage out before Dec. 16, 2017:
- Married filing jointly: $1,000,000
- Married filing separately: $500,000
The mortgage interest deduction isn’t phased out at a specific income level. Instead, your eligibility depends on your mortgage amount and whether you choose to itemize or take the standard deduction that corresponds to your tax filing status.
Yes, mortgage interest on a second home may be deductible.
The interest you pay on a reverse mortgage generally isn’t deductible until the loan is paid off.
Mortgage interest on rental property is usually tax-deductible, since the IRS considers it a business expense.
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