Mortgage Interest Deduction Guide (2026) - Homeownership Tax Benefits
Mortgage interest deduction guide: loan limits ($750,000), itemized vs standard, second home rules, and deduction calculation.
Summary
Mortgage interest deduction: up to $750,000 loan limit for primary + second home. Must itemize. Interest on loans above limit not deductible. Report on Schedule A.
Key Steps
- 1Loan limit: $750,000 for mortgages after Dec 15, 2017 ($1M for older loans).
- 2Eligible properties: primary residence, second home (not investment).
- 3Itemize required: standard deduction excludes mortgage interest benefit.
- 4Calculation: report interest paid on Form 1098 from lender on Schedule A.
- 5Second home: same deduction rules, must not be rental property.
- 6Home equity: deductible if used to buy, build, or improve home.