Wisconsin Mortgage Interest Deduction
Wisconsin Mortgage Interest Deduction 2026
Wisconsin homeowners should first test whether mortgage interest is deductible under federal Schedule A rules, then separately review Wisconsin return treatment. The federal deduction, Form 1098 records, property-tax records, and any Wisconsin itemized deduction credit calculation are separate pieces of the same filing workflow.
Primary taxpayer
Wisconsin resident or filer evaluating mortgage interest deduction
Federal check
Review the IRS deduction or income reporting rule first
State check
Wisconsin return treatment and 7.65% top state rate
Canonical route
/deduction/mortgage-interest/wisconsin/
What matters for 2026
- Use this exact state page when the search intent names both the deduction topic and the state.
- Separate the federal deduction, state return treatment, and local filing records before estimating savings.
- Verify the current-year IRS and state source links before taking a filing position.
Next step
Use the main deduction guide for calculator inputs, eligibility checks, related forms, and broader federal rules.
Open the full guidePlanning workflow
- 1Confirm whether the federal itemized, above-the-line, credit, exclusion, or income-reporting rule applies.
- 2Review Wisconsin filing instructions separately instead of assuming the federal result carries over.
- 3Keep source documents, worksheets, receipts, and return workpapers together for audit support.
- 4Use the linked LevyIO guide for broader calculator inputs, then return to this page for the state-specific checklist.
Records to keep
- Federal form or worksheet tied to the deduction topic
- Wisconsin return instructions, schedules, or state workpapers
- Receipts, statements, confirmations, or logs supporting the amount
- A short note showing how federal and state calculations differ
Primary sources
2026 savings example for Wisconsin
Planning estimate for a single filer earning $67,125 (Wisconsin median household income in LevyIO's state dataset) who removes $5,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; WI tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$894
Federal savings
$663
$5,938 → $5,275 · 22% bracket
WI state savings
$231
$2,214 → $1,983 · 5.3% marginal
Combined marginal rate
27.3%
≈ $273 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $750,000.
Federal × Wisconsin marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The WI column is the state marginal rate at the midpoint of each range. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | WI marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 3.5% | 13.5% | $135 |
| 12% | $28,500 - $66,500 | 4.4% | 16.4% | $164 |
| 22% | $66,500 - $121,800 | 5.3% | 27.3% | $273 |
| 24% | $121,800 - $217,875 | 5.3% | 29.3% | $293 |
| 32% | $217,875 - $272,325 | 5.3% | 37.3% | $373 |
| 35% | $272,325 - $656,700 | 7.65% | 42.65% | $427 |
| 37% | Over $656,700 | 7.65% | 44.65% | $447 |
Eligibility & forms
Homeowners with mortgage on primary or secondary residence
- Must itemize deductions
- Mortgage on qualified home
- Limited to $750K mortgage debt
Federal forms: Schedule A, Form 1098
Wisconsin filing notes
Standard deduction phases out at higher incomes. Use capital gains exclusions on WI farm and business assets. Social Security exempt. Homestead credit helps offset property taxes.
Common mistakes: Forgetting PMI premiums; Not tracking home equity loan interest.
Frequently asked questions
How much can the Mortgage Interest Deduction save a Wisconsin taxpayer in 2026?
In LevyIO's example, a single filer with $67,125 of income (the Wisconsin median household income in our state dataset) who removes $5,000 from taxable income saves about $663 in 2026 federal tax (22% marginal bracket) plus about $231 in Wisconsin tax (5.3% state marginal rate), roughly $894 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's WI bracket data, not a survey figure.
What is the Wisconsin income tax rate for 2026?
Wisconsin has a progressive income tax with a top rate of 7.65%. The WI standard deduction in LevyIO's dataset is $13,960 single / $25,840 married. Four brackets 3.5%-7.65%. High property taxes (1.61%). Standard deduction phases out. Farm capital gains exclusion. Social Security exempt.
Who qualifies for the Mortgage Interest Deduction in Wisconsin?
Homeowners with mortgage on primary or secondary residence. The federal rules are the same in every state; the requirements are: Must itemize deductions; Mortgage on qualified home; Limited to $750K mortgage debt. Wisconsin filers should confirm on the WI return whether the state follows the federal treatment.
Which forms do I file to claim the Mortgage Interest Deduction?
Federal: Schedule A, Form 1098. Wisconsin: check the Wisconsin Department of Revenue instructions for the matching state schedule. Common mistakes: Forgetting PMI premiums; Not tracking home equity loan interest.
Mortgage Interest Deduction in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.