Is mortgage insurance tax deductible?

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Casey Epton, CPA, is a Senior Tax Advisor at Deduction, where he helped design Taylor, CPAI from day one, building an AI tax agent that works seamlessly for both clients and the CPAs who verify every return.

Last updated:

Sep 2026

For federal tax purposes and for tax year 2025, mortgage insurance premiums are not deductible on your individual income tax return. The deduction for qualified mortgage insurance premiums expired after tax year 2021 and has not been extended by Congress for tax years 2022 through 2025.

Background on the Deduction

The deduction for qualified mortgage insurance premiums was enacted in 2006 and was extended multiple times. The most recent extension (Consolidated Appropriations Act, 2021) allowed the deduction for tax years 2018 through 2021. No legislation has extended it to tax years 2022–2025. As of this writing, the deduction is not available for the 2025 tax year. The restoration of the PMI deduction begins with tax year 2026. Unlike previous "extenders" the OBBBA has made the mortgage insurance deduction permanent starting in 2026.

What Types of Mortgage Insurance Are Affected

Private mortgage insurance (PMI) - conventional loans with less than 20% down
FHA Mortgage Insurance Premium (MIP) - both upfront and annual MIP
VA loans do not require mortgage insurance. Instead, borrowers pay a VA funding fee, which historically qualified for the same tax treatment as mortgage insurance premiums when the deduction was available.
USDA guarantee fee - charged on USDA rural development loans

What Is Still Deductible

Qualified mortgage interest itself remains deductible under IRC §163(h) for acquisition debt up to $750,000 ($375,000 MFS) on a primary or second residence. Property taxes are deductible subject to the $10,000 SALT cap on Schedule A. Both require itemizing.

Monitor for Legislative Changes

Congress periodically revives expired tax extenders, sometimes retroactively. If Congress extends the mortgage insurance deduction for 2025 before you file, you would be able to claim it. Check IRS.gov for any updates before finalizing your return.

Deduction status for tax year 2025: NOT available at the federal level. Monitor IRS.gov and any tax extender legislation before filing.

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