concept

mortgage interest deduction

Also known as: MID, home mortgage interest, mortgage interest

Facts (14)

Sources

The Role of Taxation in Family Inequality: Possibilities for Reform ncfr.org National Council on Family Relations Dec 20, 2024 6 facts

measurementThe mortgage interest deduction (MID) results in up to $47 billion in foregone federal revenue annually, with 84% of the tax reduction accruing to White households and 79% accruing to the top 10% of all earners.

perspectiveTo address inequities in the mortgage interest deduction (MID), the United States government could eliminate the deduction, reform it to allow non-itemizing low- and moderate-income homeowners to claim a portion, or establish a new renter tax credit.

measurementThe mortgage interest deduction (MID) in the United States results in up to $47 billion in foregone federal revenue annually.

measurement84% of the tax reduction from the mortgage interest deduction (MID) in the United States accrues to White households.

measurement79% of the tax reduction from the mortgage interest deduction (MID) in the United States accrues to the top 10% of all earners.

claimThe mortgage interest deduction (MID) fails to benefit many low- and moderate-income homeowners because they do not itemize their deductions, and renters are ineligible for a comparable deduction for housing expenses.

14 Tax Saving Strategies to Minimize Your Expenses edelmanfinancialengines.com Edelman Financial Engines Jan 5, 2026 2 facts

claimItemized deductions allow taxpayers to claim expenses such as charitable donations, mortgage interest, property taxes, state or local income taxes, and certain medical expenses.

claimTaxpayers can deduct interest on mortgage payments for homes they own, with the deduction limited to principal borrowings of up to $750,000.

7 Tax Planning Strategies to Know in 2026 - NerdWallet nerdwallet.com NerdWallet Mar 10, 2026 2 facts

claimTaxpayers may deduct the interest portion of mortgage payments on a primary home.

claimHomeowners may find itemizing deductions attractive because mortgage interest and property taxes can often exceed the standard deduction amount.

How to Optimize Wealth Management and Tax Planning - Sager CPA sager.cpa Sager CPA 2 facts

claimTaxpayers may benefit from itemizing deductions such as mortgage interest, state and local taxes, and charitable contributions, even with increased standard deductions.

claimTaxpayers may benefit from itemizing deductions, including mortgage interest, state and local taxes, charitable contributions, and unreimbursed medical expenses that exceed 7.5% of adjusted gross income.

Personal Finance: Wealth, Retirement and Tax Strategies online.mason.wm.edu William & Mary Online Jul 11, 2024 1 fact

claimCommon tax deductions, such as mortgage interest and charitable donations, function to lower an individual's taxable income.

Taxes, Government Transfers and Wealth Inequality milkenreview.org Eugene Steuerle · Milken Review Jan 21, 2019 1 fact

claimBorrowing and deducting home mortgage interest while simultaneously contributing to tax-deferred retirement accounts constitutes tax arbitrage.