Mortgage Interest Deduction 2026: Is It Worth Itemizing?

This guide shows you exactly when it makes sense to itemize and how much you could save.

The 2026 Standard Deduction

• Single: $16,100
• Married Filing Jointly: $32,200
• Head of Household: $24,150

You only benefit from the mortgage interest deduction if your total itemized deductions exceed these amounts.

The Rules: What You Can Deduct

• Interest on up to $750,000 of mortgage debt ($375,000 if married filing separately) for homes purchased after December 15, 2017.
• Interest on up to $1,000,000 for homes purchased before that date (grandfathered).
• Interest on home equity loans — but only if the funds were used to buy, build, or substantially improve the home.

When Does Itemizing Make Sense?

Let's run the numbers for a $400,000 home with 20% down, 6.5% interest rate, 1.1% property taxes, and a married couple filing jointly:

First year: Itemized ($34,900) > standard ($32,200) → you save $650 (the $2,700 difference × 24% bracket).

Year 5: Itemized ($32,400) ≈ standard ($32,200) → almost break‑even.

After year 5: The standard deduction is likely higher → you stop itemizing.

Single Filers Benefit More

For single filers, the standard deduction is only $16,100. Using the same example:

• Itemized total: $34,900 (mortgage interest + property tax + state tax)
• Standard deduction: $16,100
• Difference: $18,800
• Tax savings at 24%: $4,512

Single homeowners benefit much more from the mortgage interest deduction than married couples.

The SALT Cap Limitation

State and Local Tax (SALT) deductions are capped at $10,000 ($5,000 if married filing separately). This includes property taxes + state income tax.

If you're in a high‑tax state like California or New York, this cap significantly reduces your itemized deductions. On a $400,000 home with 1.5% property taxes ($6,000) and $10,000 in state income tax, you'd hit the $10,000 cap and lose $6,000 in potential deductions.

Is the Mortgage Interest Deduction Worth It?

The answer depends on three factors:

1. How much mortgage interest you pay — larger loans and higher rates = more interest.
2. Your other itemized deductions — property taxes, state income tax, and charitable donations.
3. Your filing status — single filers benefit much more than married couples.

For most married couples with a $400,000–$500,000 mortgage, the standard deduction is usually higher than itemized deductions. For single homeowners, itemizing is often worth it.

How to Maximize Your Mortgage Interest Deduction

• Bunch charitable donations — combine multiple years of donations into one year to push you over the standard deduction threshold.
• Pay property taxes in alternating years — if you're close to the standard deduction, prepay property taxes in one year to itemize, then take the standard deduction the next year.
• Keep good records — Form 1098 from your lender shows the interest you paid. Keep this for your tax return.

Final Verdict

• Single filers → Itemizing usually wins. The mortgage interest deduction is valuable.
• Married couples → Itemizing rarely wins with the $32,200 standard deduction. Unless you have a large mortgage ($500,000+) or high state taxes, take the standard deduction.
• High‑tax state residents → The SALT cap limits your deduction. You may not benefit as much.

Ready to run your own numbers? Use our Mortgage Calculator to see your interest payments and estimated tax savings.

Frequently Asked Questions