Mortgage insurance premium is tax deductible only if you paid it on a loan taken out after 2006 and meet income limits that phase out the deduction entirely for higher earners
The mortgage insurance premium (MIP) deduction exists, but it comes with strict conditions. You can deduct what you paid for private mortgage insurance (PMI) or mortgage insurance on an FHA, VA, or USDA loan — but only if your modified adjusted gross income (MAGI) falls below a certain threshold. For the 2024 tax year, that threshold is $109,000 for single filers and $218,000 for married couples filing jointly. Above those amounts, the deduction phases out and disappears entirely at $154,000 and $244,000 respectively.
The deduction also has an expiration date. Congress has extended it multiple times, but it is not permanent. As of now, it is set to expire after the 2025 tax year unless Congress acts again. This means you should check the current tax year rules before claiming it, because the deduction may not be available when you file.
Key Takeaways
- Mortgage insurance premium is deductible only if your loan originated after 2006 and your income is below $109,000 (single) or $218,000 (married filing jointly) for 2024.
- The deduction phases out completely at $154,000 (single) or $244,000 (married filing jointly), so higher earners cannot claim it at all.
- You can deduct PMI on conventional loans, and mortgage insurance on FHA, VA, and USDA loans, as long as you meet the income test.
- The deduction is temporary and set to expire after 2025 unless Congress extends it again, so verify it is still available in the year you file.
Which loans and insurance types may have access to
The deduction applies to private mortgage insurance (PMI) on conventional loans, and to mortgage insurance premiums on government-backed loans: FHA, VA, and USDA. The key requirement is that the loan must have been taken out after December 31, 2006. If you refinanced an older loan after 2006, the refinance date is what counts, not the original loan date.
You cannot deduct mortgage insurance if you took out the loan before 2007, even if you are still paying the insurance. You also cannot deduct insurance on a second home or investment property — the deduction is limited to your primary residence.
The insurance must be required by the lender or mandated by law. If you paid for insurance voluntarily or as part of a different financial product, it does not may have access to. Your mortgage statement or lender documentation will show whether the insurance is required.
Income limits and how they work
Your modified adjusted gross income (MAGI) determines whether you can claim the deduction at all. For 2024, the threshold is $109,000 for single filers and $218,000 for married couples filing jointly. If your MAGI is at or below that amount, you can deduct the full mortgage insurance premium you paid that year.
If your MAGI exceeds the threshold but stays below the phase-out limit, the deduction shrinks. For every $1,000 (or fraction thereof) above the threshold, you lose $100 of the deduction. For single filers in 2024, the deduction disappears entirely at $154,000 MAGI. For married couples filing jointly, it disappears at $244,000. Between the threshold and the phase-out limit, you calculate the reduction yourself or use a worksheet in the IRS instructions.
MAGI is not the same as your gross income. It includes your adjusted gross income plus certain add-backs, such as foreign earned income or student loan interest deductions. Your tax software or tax preparer can calculate your MAGI for you.
How to claim the deduction on your tax return
You claim mortgage insurance premium on Schedule A (Form 1040) as an itemized deduction. You can only claim it if you itemize deductions rather than take the standard deduction. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. If your total itemized deductions (including mortgage interest, property taxes, and other may be able to access expenses) exceed the standard deduction, itemizing saves you money.
On Schedule A, mortgage insurance premium goes on the line labeled "Mortgage insurance premiums" under the section for home-related deductions. You will need the amount you paid during the tax year, which your lender reports on a statement or you can find on your mortgage statements.
If you use tax software, it will walk you through the itemized deduction section and ask whether you paid mortgage insurance. If you work with a tax preparer, bring documentation of what you paid — your mortgage statements or a letter from your lender showing the annual insurance premium.
When the deduction phases out or disappears
The phase-out happens automatically if your MAGI falls in the range between the threshold and the limit. You do not lose the deduction all at once; it shrinks gradually. The IRS provides a worksheet in the instructions to Schedule A that walks you through the calculation, or your tax software will do it for you.
Once your MAGI reaches the phase-out limit, you cannot claim any deduction that year. For 2024, that means single filers with MAGI of $154,000 or more and married couples with MAGI of $244,000 or more cannot deduct mortgage insurance premium at all, regardless of how much they paid.
These income thresholds change slightly each year to account for inflation. The IRS publishes updated limits in the instructions to Schedule A, usually in late fall before the tax year ends. Check the current year's instructions before you file.
The deduction expires after 2025 unless Congress extends it
Mortgage insurance premium deduction is not a permanent part of the tax code. Congress created it as a temporary measure and has extended it several times. As written now, the deduction expires after December 31, 2025. If you are filing a 2025 return, you can still claim it. If Congress does not act, the deduction will not be available for 2026 and beyond.
Congress sometimes extends tax provisions retroactively, meaning they may pass a law in 2026 that allows the deduction for 2025 returns that were already filed. However, you cannot count on this. If you are planning your finances around this deduction, assume it may not be available after 2025.
Check the IRS website or the instructions to Schedule A each year to confirm the deduction is still in effect for the tax year you are filing.
Mortgage insurance versus mortgage interest
Mortgage insurance premium is separate from mortgage interest, which is also deductible on Schedule A. Mortgage interest is what you pay to borrow the money; mortgage insurance is what you pay to protect the lender if you default. Both can be deducted, but they are different line items.
Mortgage interest has no income limit and does not expire. You can deduct it as long as the loan is secured by your primary or secondary residence and the loan amount does not exceed $750,000 (or $1 million if the loan was taken out before December 16, 2017). Mortgage insurance premium, by contrast, has income limits and a sunset date.
Your lender will report mortgage interest on Form 1098 and mortgage insurance separately on the same form or on a statement. Make sure you claim both if you paid both and meet the requirements for each.
Frequently Asked Questions
Can I deduct mortgage insurance if I refinanced my loan?
Yes, if you refinanced after 2006. The deduction is based on when the current loan originated, not the original loan date. If you refinanced a pre-2007 loan in 2010, for example, you can deduct the insurance on the 2010 refinance. However, you still must meet the income limits.
What if I paid off my mortgage early — can I deduct the remaining insurance?
No. You deduct only the insurance premium you actually paid during the tax year. Once the loan is paid off and insurance stops, there is nothing left to deduct. If you paid a lump sum to remove PMI early, that amount is not deductible.
Do I have to itemize to claim the mortgage insurance deduction?
Yes. The deduction appears on Schedule A, which you file only if you itemize. If the standard deduction is larger than your total itemized deductions, you will not benefit from claiming mortgage insurance. Your tax software will show you which approach saves more money.
What counts as my modified adjusted gross income?
MAGI for this deduction is your adjusted gross income (line 11 of Form 1040) plus certain add-backs, such as foreign earned income exclusion or student loan interest deduction. Your tax software or preparer will calculate it. It is not the same as your gross income from your W-2 or 1099.
Will the mortgage insurance deduction still exist when I file my 2025 taxes?
Yes, the deduction is available for the 2025 tax year. However, it is set to expire after 2025 unless Congress extends it. For 2026 and beyond, check the IRS website or current tax instructions to see if it has been extended.