6 Tax Deductions for Homeowners (And Other Savings)
Owning a home comes with more than just the joy of having a place to call your own — it can also provide some valuable tax breaks. In this guide, we’ll break down the key tax deductions for homeowners, the questions you should ask to decide if itemizing is right for you, and other savings opportunities you shouldn’t miss.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial or tax advice. HomeLight encourages you to reach out to an advisor.
First, review the standard deduction
To claim most tax deductions for homeowners, you’ll need to itemize on your tax return. But first, it’s essential to understand the standard deduction, which is a set amount you can deduct from your income without having to itemize.
For 2024, the standard deduction amounts are as follows:
$14,600 for single filers
$29,200 for married couples filing jointly
$21,900 for heads of household
If your total deductions don’t exceed these amounts, it’s usually better to take the standard deduction. However, itemizing might lead to more significant savings depending on your specific expenses.
Should you itemize? Ask these questions
Tax professionals recommend reviewing certain key areas to decide if you should itemize your deductions. Ask yourself:
Did I have large medical or dental expenses?
Did I pay mortgage interest?
Did I pay real property taxes?
Did I experience losses due to a disaster?
Did I make significant donations to a charity?
Do I qualify for other major itemized deductions (impairment-related work expenses, etc.)?
By answering these initial questions, you can get a better sense of whether itemizing your deductions will save you more money than taking the standard deduction. Many online tax filing services will ask questions like these at the beginning of their processes.
If you decide to itemize, here are six potential tax deductions for homeowners:
1. Mortgage interest
One of the most significant tax deductions for homeowners is the mortgage interest deduction. If you have a mortgage on your home, you can typically deduct the interest you paid on loans up to $750,000 ($375,000 if married filing separately). For mortgages taken out before December 16, 2017, the limit is higher — up to $1 million ($500,000 if married filing separately).
For example, if you paid $10,000 in mortgage interest last year, you can deduct that amount, lowering your taxable income. Be sure to review your Form 1098, which your lender will provide, to see exactly how much interest you paid.
