Deductible Home Buying Expenses May 2026

: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home.

: State and local real estate taxes (SALT) are deductible up to a combined total of $40,000 through 2028. deductible home buying expenses

: If you paid "discount points" to lower your interest rate, they are often fully deductible in the year you paid them, provided the loan is for your primary residence and meeting other IRS criteria. Nondeductible Closing Costs : You can deduct interest paid on up

This cap is reduced to $20,000 for those who are married and filing separately. Nondeductible Closing Costs This cap is reduced to

Interest on home equity loans is only deductible if the funds were used to buy, build, or substantially improve the home securing the loan.

Check your settlement statement for any pro-rated property taxes you reimbursed to the seller at closing; these are often deductible even if they aren't on your Form 1098.