Mortgage interest is one of the largest deductions for homeowners who itemize. For homes acquired after 15 December 2017 you can deduct interest on up to $750,000 of debt, with higher limits for older loans.
This guide explains what qualifies, the debt limits, how home equity loans are treated, how to compare itemizing with the 2026 standard deduction and how it is reported, using IRS Topic 505, Publication 936, the Schedule A instructions and Revenue Procedure 2025-32.
The IRS says qualified mortgage interest includes interest and points you pay on a loan secured by your main home or a second home. A main home is where you live most of the time, such as a house, condominium, cooperative apartment, mobile home or houseboat that has sleeping, cooking and toilet facilities. If you rent a second home to others you must also use it as a home for more than the greater of 14 days or 10 percent of the days you rent it for the interest to qualify. Your lender reports the interest and points on Form 1098, which you usually receive if you paid $600 or more of mortgage interest on any one mortgage.
| Loan type | Limit on debt (married filing separately) |
|---|---|
| Taken out on or before 13 October 1987 (grandfathered debt) | Fully deductible |
| Taken out after 13 October 1987 and on or before 15 December 2017 to buy, build or improve | $1 million ($500,000) |
| Taken out after 15 December 2017 to buy, build or substantially improve (IRS Topic 505 words this as homes acquired after that date) | $750,000 ($375,000) |
The $750,000 limit was originally written to cover 2018 through 2025 only. Section 70108 of the 2025 tax law (Public Law 119-21) removed that end date, so it is permanent, and the IRS draft of Publication 936 for 2026 still states the $750,000 ($375,000) limit and the $1 million ($500,000) limit for debt incurred before 16 December 2017. The dollar limits apply to the combined mortgages on your main home and second home. If your debt is above the limit, Publication 936 has a worksheet to figure the deductible part.
Publication 936 says that no matter when the debt was incurred, you can no longer deduct the interest from a loan secured by your home to the extent the proceeds were not used to buy, build or substantially improve your home. So a home equity line used to pay off credit cards or buy a car does not qualify, while one used for a renovation of the home that secures it can. The IRS also says personal interest, such as interest on a loan for a personal car bought on or before 31 December 2024, is not deductible.
| 2026 standard deduction | Amount |
|---|---|
| Single or married filing separately | $16,100 |
| Head of household | $24,150 |
| Married filing jointly | $32,200 |
You can deduct mortgage interest only if you itemize, so your total itemized deductions need to beat the standard deduction. These 2026 standard deduction amounts come from IRS Revenue Procedure 2025-32. Itemized deductions also include state and local taxes and charitable gifts; see our Schedule A guide and SALT deduction guide. For example, a married couple filing jointly whose mortgage interest, property tax and charitable gifts add up to less than $32,200 would normally take the standard deduction instead (our illustration). The IRS had not published 2027 standard deduction amounts when we last checked (26 October 2026); they are due in an annual inflation-adjustment revenue procedure.
The deduction for mortgage insurance premiums is back for 2026. The 2025 edition of Publication 936 said it had expired, but the IRS draft of Publication 936 for 2026 returns says the itemized deduction for qualified mortgage insurance premiums has been reinstated for 2026, and IRS Publication 505 for 2026 says the election has been made permanent. The premiums are treated as home mortgage interest if the insurance relates to home acquisition debt on a first or second home and the contract was issued after 2006. Qualified insurance is provided by the VA, the Federal Housing Administration or the Rural Housing Service, or is private mortgage insurance. You claim it on Schedule A line 8d for amounts paid or accrued in 2026.
The deduction phases out with income: if your AGI is more than $100,000 ($50,000 if married filing separately) it is reduced, and if your AGI is more than $109,000 ($54,500 if married filing separately) you cannot deduct the premiums. Premiums that relate to periods after the end of the year are spread over the shorter of the loan term or 84 months. Because the Publication 936 text is still a draft, check the final version before filing.
Separately, the IRS notes that some borrowers hold a mortgage credit certificate (MCC) from a state or local agency that gives a credit against federal tax for part of the mortgage interest. Report deductible interest on Schedule A line 8a; if your deduction is limited, see Publication 936.
IRS Topic 505: Interest expense, IRS: Publication 936, Home Mortgage Interest Deduction, IRS: Instructions for Schedule A (Form 1040) 2025, IRS: Publication 936 (2026 draft), IRS: Publication 505 (2026), IRS: Revenue Procedure 2025-32.