You can deduct mortgage interest on your federal taxes only if you itemize instead of taking the standard deduction, and only on up to $750,000 of mortgage debt for loans taken out after December 15, 2017 ($375,000 if married filing separately). Because the standard deduction is large, many homeowners, especially those with smaller loans, get no extra benefit. Tax rules change, so check current IRS guidance or a tax professional.
Itemizing vs. the standard deduction
The deduction only helps if your itemized deductions (mortgage interest, state and local taxes up to the federal limit, charitable gifts and others) add up to more than your standard deduction. Many buyers with modest loans or low state taxes find the standard deduction is larger.
What can be deductible
- Interest on a mortgage for your main home and one second home, within the debt limit.
- Points paid to buy down your rate on a purchase are often deductible in the year paid, if certain conditions are met; points on a refinance are usually deducted over the loan’s life.
- Property taxes, combined with state and local income or sales taxes, up to the federal cap for state and local taxes.
- Home equity loan or HELOC interest, only if the money is used to buy, build or substantially improve the home.
Whether mortgage insurance premiums are deductible has changed several times; check the current rules for your tax year.
Your Form 1098
Your servicer sends Form 1098 each January showing the interest you paid. If your loan was transferred, you may get one from each servicer; see servicing transfers.
Try it: Amortization scheduleSee how much of each year’s payments go to interest, the number your deduction is based on.Don’t buy more house for the deduction
A deduction returns only a portion of the interest you pay, at your tax rate. Base your budget on the full payment; see the affordability calculator.
Get personalized advice
This is general information, not tax advice. IRS Publication 936 covers the home mortgage interest deduction in detail, and a tax professional can tell you whether itemizing helps you.
Common questions
Is mortgage interest deductible?
Only if you itemize, and only on up to $750,000 of mortgage debt for loans taken after December 15, 2017.
Are mortgage points tax-deductible?
Points on a purchase are often deductible in the year paid if conditions are met; refinance points are usually deducted over the loan’s life.
Is HELOC interest deductible?
Only if the money is used to buy, build or substantially improve the home securing it.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.