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Mortgage Interest Deduction — Tax Deduction Guide 2026

Deduct interest paid on up to $750,000 of mortgage debt for your primary or secondary home.

$3,500
Avg Annual Savings
$750,000
Max Deduction
Itemized
Deduction Type
Schedule A, Form 1098
Tax Forms

Eligibility

Homeowners with mortgage on primary or secondary residence

Tax Savings Calculator

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Estimated Tax Savings

$1,100

At the 22% tax bracket, a $5,000 deduction saves you $1,100 in taxes.

Savings by Tax Bracket

10%
$1,591
12%
$1,909
22%
$3,500
24%
$3,818
32%
$5,091
35%
$5,568
37%
$5,886

Requirements

  • 1Must itemize deductions
  • 2Mortgage on qualified home
  • 3Limited to $750K mortgage debt

Common Mistakes to Avoid

  • !Forgetting PMI premiums
  • !Not tracking home equity loan interest

Required Tax Forms

Schedule AForm 1098

Calculate Your Full Tax Savings

Use our free tax calculators to optimize your entire tax return.

Frequently Asked Questions

What is the Mortgage Interest Deduction?

Deduct interest paid on up to $750,000 of mortgage debt for your primary or secondary home.

Who is eligible for the Mortgage Interest Deduction?

Homeowners with mortgage on primary or secondary residence

How much can I save with the Mortgage Interest Deduction?

The average tax savings is $3,500 per year. The maximum deduction is $750,000. Your actual savings depend on your tax bracket and qualifying amount.

What forms do I need for the Mortgage Interest Deduction?

You'll need to file Schedule A and Form 1098 to claim this deduction.

What are common mistakes with the Mortgage Interest Deduction?

Common mistakes include: Forgetting PMI premiums; Not tracking home equity loan interest. Always double-check requirements before filing.

Is the Mortgage Interest Deduction worth claiming?

With average savings of $3,500, the mortgage interest deduction is worthwhile for most eligible taxpayers. Make sure you meet all eligibility requirements.