Are you a homeowner? See which tax deductions you might qualify for.

Published: Monday, January 19, 2026 at 5:33 pm

Homeowners Face Tax Season with Familiar Deductions, New Changes

As the tax season approaches, homeowners across the U.S. are preparing to file their returns and navigate the available deductions. The IRS will begin accepting tax returns on January 26th. While the core deductions remain consistent with previous years, recent legislation has introduced some notable changes.

A key consideration for homeowners is whether to itemize deductions or utilize the standard deduction. The standard deduction for 2025 is $15,750 for single filers and $31,500 for married couples filing jointly. Itemizing allows taxpayers to claim eligible expenses, such as mortgage interest, state and local taxes, and charitable donations, only if the combined total exceeds the standard deduction.

One of the primary deductions available to homeowners is the mortgage interest deduction. However, the 2017 Tax Cuts and Jobs Act, which nearly doubled the standard deduction, has led to fewer people claiming this deduction. Filers can deduct up to $750,000 of mortgage debt, or up to $375,000 for married people who file separately.

Other common deductions include interest on home equity loans and lines of credit (HELOCs), but only if the funds were used for qualifying home improvements. Self-employed individuals who work from home can deduct business-related expenses, including rent, utilities, and real estate taxes. Additionally, homeowners can deduct the cost of medically necessary home improvements.

This year, two significant changes impact homeowners. The first is the expansion of the state and local tax (SALT) deduction. The new law raises the cap from $10,000 to $40,000, allowing taxpayers to deduct up to $40,000 in combined property taxes and either state and local income taxes or sales taxes. Single filers can now deduct up to $40,000, while married couples filing separately can deduct up to $20,000 each. This deduction phases out for those with adjusted gross incomes over $500,000.

The second major change is the elimination of energy-focused home improvement tax credits, which were phased out at the end of 2025. To qualify for these credits this tax season, homeowners must have completed their energy upgrades by December 31, 2025.

BNN's Perspective:

The tax code can be complex, and these changes highlight the importance of understanding how they affect individual financial situations. While the expanded SALT deduction may benefit some homeowners, the elimination of energy credits could discourage investments in clean energy upgrades. Taxpayers should carefully assess their circumstances and consider seeking professional advice to maximize their tax benefits.

Keywords: tax deductions, homeowners, mortgage interest, standard deduction, itemize, SALT deduction, home equity loan, home office expenses, medically necessary home improvements, energy credits, tax season, IRS, tax returns, property taxes, state taxes, local taxes

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