Mortgage Interest Deduction
How the mortgage interest deduction works, who qualifies, and what changed under current tax law.
What is it?
The mortgage interest deduction lets you subtract the interest you pay on a qualified home loan from your taxable income. For most homeowners with a mortgage, this is one of the largest tax deductions available.
Who qualifies?
- You must itemize deductions (not take the standard deduction).
- The loan must be secured by your primary or secondary residence.
- For loans taken out after Dec 15, 2017: deduction limited to interest on up to $750,000 of mortgage principal.
- For loans before that date: limit is $1,000,000.
What changed in recent years?
The Tax Cuts and Jobs Act of 2017 lowered the mortgage debt limit from $1 million to $750,000 for new loans. It also nearly doubled the standard deduction, which means fewer taxpayers now benefit from itemizing.
2025 standard deduction
Single: $15,000. Married filing jointly: $30,000. If your total itemized deductions (mortgage interest + state/local taxes + charitable donations) are below these amounts, the standard deduction is better.