Top 10 Tax Deductions for Homeowners in 2026
Owning a home comes with significant financial responsibilities, but it also comes with valuable tax benefits. As you prepare to file your taxes for the 2025 tax year in 2026, it’s crucial to be aware of all the deductions you may be entitled to. These deductions can lower your taxable income and potentially save you thousands of dollars.
Here are the top tax deductions available to homeowners.
Disclaimer: Tax laws are complex and can change. This information is for educational purposes only. Always consult with a qualified tax professional for advice on your specific situation.
1. Mortgage Interest Deduction
This is often the largest tax benefit for homeowners. You can deduct the interest you pay on your mortgage for your primary residence and a second home, up to certain limits.
2. Property Tax (SALT) Deduction
You can deduct the cost of your state and local taxes (SALT), which includes your property taxes. However, the total SALT deduction is currently capped at $10,000 per household, per year.
3. Mortgage Points
If you paid “points” (prepaid interest) to lower your interest rate when you bought your home, you can deduct them. Typically, they are deducted over the life of the loan, but you may be able to deduct them all in the year you paid them.
4. Home Office Deduction
If you use a part of your home exclusively and regularly for your business, you may be able to deduct a portion of your home expenses, such as mortgage interest, insurance, utilities, and repairs.
5. Medically Necessary Home Improvements
If you make improvements to your home for medical reasons, such as installing an entrance ramp or modifying a bathroom for accessibility, you may be able to deduct the costs as a medical expense.
6. Home Equity Loan & HELOC Interest
You can deduct the interest on a home equity loan or HELOC, but only if the funds were used to “buy, build, or substantially improve” the home that secures the loan.
7. Capital Gains Exclusion
When you sell your home, you can exclude up to $250,000 of the profit (or $500,000 for a married couple filing jointly) from your capital gains tax, as long as you have owned and lived in the home for at least two of the five years before the sale.
8. Rental Income Deductions
If you rent out a portion of your home, you can deduct rental expenses, such as the portion of your mortgage interest, property taxes, and maintenance costs that apply to the rented space.
9. Renewable Energy Tax Credits
If you install qualified clean energy equipment, such as solar panels or a geothermal heat pump, you may be eligible for a federal tax credit.
10. Home-Related Moving Expenses (for Military)
While the moving expense deduction has been eliminated for most taxpayers, members of the Armed Forces on active duty who move pursuant to a military order can still deduct their moving expenses.
Why DomiDocs is Your Best Friend at Tax Time
To claim these valuable deductions, you need immaculate records. A shoebox full of crumpled receipts won’t cut it. DomiDocs is the perfect record-keeping system for homeowners.
1. Organize Every Deductible Expense
Use the DomiDocs secure vault to create a dedicated “Tax Documents” folder. Throughout the year, you can easily scan and upload your property tax bills, your year-end mortgage statement (Form 1098), and receipts for any tax-deductible home improvements. This turns tax season from a stressful hunt for documents into a simple, organized process.
2. A Complete Financial History
By keeping all your home’s financial documents in one secure and organized place, you ensure that you never miss a potential deduction. DomiDocs provides the complete, easily accessible record you need to file your taxes accurately and maximize your return.
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