Definition
Federal tax deductions available to homeowners for mortgage interest and property taxes paid during the tax year. These deductions reduce taxable income for homeowners who itemize.
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Mortgage interest and property taxes are deductible if you itemize deductions instead of taking the standard deduction. The standard deduction for 2026 is $16,100 for single filers and $32,200 for married couples filing jointly. Most homeowners benefit more from itemizing if their mortgage interest plus property taxes exceed the standard deduction. State and local taxes (SALT), property tax included, are limited to $40,400 in 2026 ($20,200 if married filing separately), less when modified adjusted gross income is over $505,000 ($252,500 if married filing separately).
Pro Tip
Calculate whether itemizing saves you more than the standard deduction before filing your taxes.
Example
A homeowner with $15,000 in mortgage interest and $8,000 in property taxes could deduct $23,000 if itemizing.