Loan Tax CalculatorTaxes
Mortgage Interest Deduction Guide
Learn how to claim the mortgage interest deduction on your taxes. Understand the debt limits, itemization requirements, and how this deduction affects your tax liability.
Key figures
- 2024 Limit: $750,000 in mortgage debt for interest deduction
- $375,000 if married filing separately
- Standard Deduction 2024: $14,600 (single), $29,200 (MFJ)
- 2025 Standard Deduction: $15,750 (single), $31,500 (MFJ)
- Applies to mortgages on primary and second homes combined
Frequently asked questions
When did the $750,000 limit start?
Mortgages taken after December 15, 2017 are subject to the $750,000 limit. Older mortgages can deduct interest on up to $1 million.
Do I need to itemize to deduct mortgage interest?
Yes, you must itemize deductions on Schedule A of Form 1040 rather than take the standard deduction.
Can I deduct interest on home equity loans?
Only if the HELOC was used to buy, build, or improve your home, and the total debt (including first mortgage) does not exceed $750,000.
Does the deduction phase out?
No phase-out. If your debt qualifies, you can deduct all qualifying interest regardless of income.
Tax outcomes depend on whether you itemize, your filing status, and local rules. These are estimates, not tax advice. A tax professional or lender can confirm the details for your situation.