Quick Answer
Yes, mortgage interest remains deductible in 2026, but only on the first $750,000 of mortgage debt for loans originated after December 15, 2017. For loans before this date, the $1 million limit still applies. You must itemize deductions to claim it.
Best Answer
Robert Kim, Tax Return Analyst
Best for homeowners who bought their home after 2017 or refinanced recently
How much mortgage interest can you deduct in 2026?
Mortgage interest is still fully deductible in 2026, but the amount depends on when you took out your loan and how much you borrowed. For most homeowners, you can deduct interest on up to $750,000 of mortgage debt if your loan originated after December 15, 2017.
Example: $500,000 mortgage vs. $900,000 mortgage
Let's look at two scenarios to show how the limits work:
Scenario 1: $500,000 mortgage at 7% interest
Scenario 2: $900,000 mortgage at 7% interest
Key factors that affect your deduction
Grandfather rule for older loans
If you took out your mortgage before December 16, 2017, you're grandfathered under the old rules. You can deduct interest on up to $1 million of mortgage debt, even if you refinance, as long as you don't increase the loan amount.
What you should do
1. Gather your 1098 forms from all mortgage lenders — these show your deductible interest
2. Add up all itemized deductions to see if itemizing beats the standard deduction
3. Track home equity loan purposes — only home improvement loans qualify for the deduction
4. Consider timing large deductions in the same year to exceed the standard deduction threshold
Use our return scanner to identify if you missed claiming mortgage interest in previous years — we've found that 23% of eligible homeowners don't itemize when they should.
Key takeaway: Mortgage interest is still deductible in 2026, but only on the first $750,000 of debt for newer loans. The average homeowner with a $400,000 mortgage saves about $7,200 annually by itemizing.
Key Takeaway: Mortgage interest remains fully deductible in 2026 on up to $750,000 of debt for post-2017 loans, potentially saving thousands annually for homeowners who itemize.
Mortgage interest deduction limits based on loan origination date
| Loan Date | Maximum Debt Limit | Annual Interest (7%) | Tax Savings (24% bracket) |
|---|---|---|---|
| Before Dec 16, 2017 | $1,000,000 | $70,000 | $16,800 |
| After Dec 15, 2017 | $750,000 | $52,500 | $12,600 |
More Perspectives
Diana Flores, Tax Credits & Amendments Specialist
Best for homeowners who bought their home before December 2017
Good news for pre-2018 homeowners
If you bought your home or took out your mortgage before December 16, 2017, you're in a better position than newer homeowners. You're grandfathered under the old rules, which means you can deduct mortgage interest on up to $1 million of acquisition debt — not just $750,000.
Example: Refinancing with grandfather protection
Say you bought your home in 2015 with an $850,000 mortgage. In 2024, you refinance that loan for $800,000 (paying down some principal over the years). Even though this is a "new" loan, you can still deduct interest on the full $800,000 because:
At 7% interest, that's $56,000 in deductible interest annually — saving you about $13,440 in taxes at the 24% bracket.
What breaks the grandfather rule
You lose grandfather protection if you increase your loan amount above what you originally borrowed. If you do a cash-out refinance and increase your total debt, the excess follows the new $750,000 rules.
Key advantage over newer homeowners
This grandfather rule can save you significant money. A homeowner with an $850,000 mortgage pays about $59,500 in interest annually. Under the old rules, all of it is deductible. Under the new rules, only interest on $750,000 (about $52,500) would be deductible — a difference of $7,000 in deductions, or about $1,680 in tax savings annually.
Key takeaway: Pre-2018 homeowners can deduct interest on up to $1 million of mortgage debt, giving them a significant advantage over newer buyers who are limited to $750,000.
Key Takeaway: Homeowners with pre-December 2017 mortgages can deduct interest on up to $1 million of debt, potentially saving $1,600+ annually compared to newer homeowners.
Robert Kim, Tax Return Analyst
Best for homeowners unsure whether to itemize or take the standard deduction
Should you itemize for mortgage interest?
Just because you can deduct mortgage interest doesn't mean you should. With the higher standard deduction in 2026 — $15,000 for single filers and $30,000 for married filing jointly — many homeowners are better off taking the standard deduction.
The itemization breakeven point
You should only itemize if your total itemized deductions exceed the standard deduction. Here's what typically counts toward itemized deductions:
Example: Should a $300,000 mortgage holder itemize?
Consider a married couple with:
Since $34,000 exceeds the $30,000 standard deduction, they should itemize and save an extra $960 in taxes ($4,000 × 24% bracket).
When the standard deduction wins
Many newer homeowners with smaller mortgages should take the standard deduction. For example:
Pro tip: Bunching deductions
If you're close to the itemization threshold, consider "bunching" deductions in alternating years. Make two years' worth of charitable donations in one year, or prepay January property taxes in December.
Key takeaway: Don't automatically itemize for mortgage interest — compare your total itemized deductions to the standard deduction first. Many homeowners with mortgages under $350,000 are better off with the standard deduction.
Key Takeaway: Only itemize for mortgage interest if your total itemized deductions exceed $15,000 (single) or $30,000 (married) — many smaller mortgage holders should take the standard deduction instead.
Sources
- IRS Publication 936 — Home Mortgage Interest Deduction
- Tax Cuts and Jobs Act — Section 11043 - Mortgage Interest Deduction Limitations
Related Questions
Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.