: To claim this, you must itemize deductions. For 2026, the standard deduction is $16,100 for single filers and $32,000 for married filing jointly. 2. Expanded SALT Deduction (Property Taxes)
This is often the largest benefit. You can deduct interest paid on up to of mortgage debt for your primary or second home. how much of a tax break for buying a house
: If your mortgage was taken out before December 16, 2017, you may still be eligible for the older, higher $1 million limit. : To claim this, you must itemize deductions
For the 2026 tax year, buying a home offers several major federal tax breaks, primarily through that reduce your taxable income. The most significant change for 2026 is a quadrupled limit for state and local tax (SALT) deductions under the One Big Beautiful Bill Act (OBBBA) . 1. Mortgage Interest Deduction Expanded SALT Deduction (Property Taxes) This is often
: For married couples filing separately, the limit is $375,000 each.
Under the OBBBA, the cap on State and Local Tax (SALT) deductions—which includes your property taxes—has increased significantly. State and local tax (SALT) deduction: Overview and FAQs