Maximize your 2025 tax savings as a homeowner
Need help preparing for tax season? Find out more about tax deductions for homeowners in 2025, from mortgage interest to property taxes.
Tax season is here! Homeownership comes with unique tax benefits, and we're here to help you make the most of them. To simplify your filing process, we've rounded up key deductions and credits to look out for.
Key Homeowner Deductions & Credits
Mortgage Interest Deduction: You may be able to deduct interest paid on your mortgage, up to $750,000 in some cases. Check the IRS guidelines and your state's regulations to confirm your eligibility.
Property Tax Deduction: State and local property taxes may be deductible, capped at $10,000 ($5,000 if married filing separately).
Refinancing Deductions: If you refinanced this year, you might be able to deduct mortgage interest and points paid over the life of the loan. Consult your loan servicer and a tax professional for details.
Energy Efficiency Credits: Installed qualifying energy-efficient upgrades like heat pumps or solar panels? You could be eligible for credits up to $3,200.
Standard vs. Itemized Deductions: Which is Right for You?
Best practice is to compare your total itemized deductions with the standard deduction to see which offers the greatest tax benefit.
For 2024 taxes (due April 2025), the standard deduction is:
$29,200 for married couples filing jointly,
$14,600 for single filers, and
$21,900 for heads of households.
Get Ahead This Tax Season
Pro Tip: Gather key documents like your mortgage interest statement (Form 1098) and property tax records early to streamline your filing. Contact your servicer to get a copy of your 1098 if you don't already have it.
