Homeownership can bring added considerations during tax season.
As the IRS has begun accepting 2026 tax returns, homeowners may be reviewing whether to itemize deductions or take the standard deduction.
Depending on individual circumstances, certain expenses tied to owning a home may still be eligible for tax treatment under current rules, including mortgage interest and property-related costs. Because tax situations vary, it may be helpful to review what applies to you before filing.
The deductions available to homeowners are fairly consistent with years past, with a few changes following last year's passage of the Republicans' new tax and spending law.
What deductions can I claim as a homeowner?
The mortgage interest deduction remains one of the chief tax breaks for homeowners.
However, fewer people have claimed this since the 2017 Tax Cuts and Jobs Act. Still, it remains an option for taxpayers who itemize — meaning they add up eligible expenses such as mortgage interest, state and local taxes and charitable donations, and claim them only if the combined total exceeds the standard deduction.
The standard deduction for 2025 is $15,750 for single filers and $31,500 for married couples filing jointly.
Filers can deduct up to $750,000 of mortgage debt, or up to $375,000 for married people who file separately, according to the Internal Revenue Service.
Other common deductions for homeowners, could include:
- Home equity loan and home equity line of credit (HELOC) interest. Filers can only take this deduction if the money was spent on qualifying home improvements.
- Home officeexpenses. People who are self-employed and who work from home can write off expenses they paid related to their business, including rent, utilities and real estate taxes. If you're a full-time employee who works from home but receives a W-2, you are not eligible for this deduction.
- Medically necessary home improvements.Homeowners can deduct the cost of installing health care equipment or making other medically necessary adaptations in their homes such as constructing entrance ramps to help someone in a wheelchair.
What's new this year?
There are two main changes this year for homeowners stemming from the "big, beautiful bill" act that President Trump signed into law last year.
The first is the expansion of the state and local tax (SALT) deduction. The "big, beautiful bill" Act raises the cap from $10,000 to $40,000, allowing taxpayers to deduct up to $40,000 in combined property taxes and either state and local income taxes or sales taxes.
Single filers can now deduct up to $40,000, while married couples can deduct up to $20,000 each if they are filing separately. The deduction phases out for people with adjusted gross incomes over $500,000.
The degree to which any given filer will benefit from the higher SALT cap will depend on where they live, the type of property they own and the amount they pay in property taxes.
The second major change homeowners should be aware of is the elimination of energy-focused home improvement tax credits which were phased out at the end of 2025 under the "big, beautiful bill." The credits were intended to help taxpayers offset the cost of clean-energy upgrades, such as installing solar panels or improving insulation.
If you have questions about how these items show up in your overall financial picture, feel free to reach out. For specific tax guidance, it’s best to connect directly with your qualified tax professional. I’m happy to coordinate with them to ensure your financial strategy is aligned.