Homeowner Tax Deductions in 2026: What to Track and What to Ignore

February 4, 2026·2 min read

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Homeownership does not automatically lower your taxes. The savings only show up if you itemize and you keep clean records. This guide focuses on what to track and where people go wrong.

The Core Items to Track

Mortgage interest (Form 1098). This is the largest deduction for many homeowners, but it only helps if you itemize.
Property taxes. These can be deductible, but current law limits the total state and local tax deduction. Track your annual total so you can compare against the standard deduction.
Points paid at purchase or refinance. Points are often deductible, but the timing depends on the type of loan and how the points were paid.

Use the Tax Calculator to compare itemizing vs the standard deduction with your actual numbers.

Items That Often Cause Confusion

Home improvements. Most improvements are not deductible immediately, but they can increase your cost basis when you sell.
Home office expenses. This is only for self-employed filers who meet the IRS requirements.
Mortgage insurance premiums. Deductibility can vary by tax year, so check current rules before assuming you can claim it.

Common Mistakes Homeowners Make

Forgetting to track closing costs and points from the year they bought.
Assuming every home expense is deductible.
Skipping the itemize vs standard deduction comparison.

A Simple Decision Flow

Add up mortgage interest, property taxes, and eligible points.
Compare the total to the standard deduction.
If itemizing is close, run both scenarios with the Tax Calculator to be sure.

Related Tools and Guides

Good tracking is what turns homeownership into real tax savings. If you keep clean records, tax time becomes a simple math decision instead of a scramble.