Short answer
If you itemize, generally yes. The IRS lets you deduct home mortgage interest on up to $750,000 of debt used to buy, build or substantially improve your home ($375,000 if married filing separately), with higher limits for debt taken on before December 16, 2017. Home equity interest counts only if the money went into the home. For tax year 2026, the deduction for qualified mortgage insurance premiums is back, with an income phaseout.
Do I have to itemize?
Yes. Mortgage interest is an itemized deduction on Schedule A, so it only helps if your itemized deductions add up to more than your standard deduction. Your servicer sends Form 1098 each year showing the interest you paid, and usually points and mortgage insurance too.
Is HELOC or home equity loan interest deductible?
Only the part used to buy, build or substantially improve the home that secures it. If you used the money for something else, such as paying off a car, that interest isn't deductible. See HELOC vs cash-out refinance.
What changed for mortgage insurance in 2026?
The deduction for qualified mortgage insurance premiums had expired, so it couldn't be claimed for 2025. The IRS says it's reinstated for tax year 2026, for premiums paid or accrued in 2026, and it phases out as your adjusted gross income rises. The IRS's 2026 guidance was still a draft when this was written, so confirm with a tax professional. See how to remove PMI.
Does New Hampshire add anything?
New Hampshire doesn't tax wages, so there's no state income tax return where this would apply. Your town property taxes are a separate itemized deduction with their own federal limits. See does NH have an income tax.
Should this change how much house I buy?
Plan your budget on the monthly payment, not the tax savings. Tom doesn't give tax advice; a tax professional can tell you what you'd actually save.
Sources
- IRS Publication 936 (2025), Home Mortgage Interest Deduction
- IRS Publication 936 for 2026 returns (draft)
- IRS, Can I deduct my mortgage-related expenses?
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.