Mortgage insurance premiums are tax deductible only if you meet specific income and loan requirements, and only for the tax year in which you paid them.
Private mortgage insurance (PMI) — the insurance you pay when you put down less than 20 percent on a home — may be deductible as a mortgage interest expense on your federal tax return. However, the deduction is not automatic. You must have taken out your mortgage after December 15, 2006, your modified adjusted gross income must fall below a certain threshold (which varies by year), and you must itemize deductions rather than take the standard deduction.
The deduction is also temporary. Congress has extended it multiple times, but it does not exist permanently. For the 2023 tax year, the deduction was available; for 2024, it expired on December 31, 2023, though Congress may extend it again. You will need to check the current year's rules before claiming it.
Key Takeaways
- PMI is deductible only if your mortgage originated after December 15, 2006, and only in years when Congress has extended the deduction.
- Your modified adjusted gross income must be below a threshold — $100,000 for single filers and $200,000 for married filers in 2023 — to claim the deduction.
- You must itemize deductions on Schedule A to claim PMI; if you take the standard deduction, you cannot deduct PMI.
- PMI paid in one year is deductible only on that year's return; you cannot carry forward unused deductions to future years.
- The deduction phases out as your income rises, reducing the amount you can deduct by 10 percent for each $1,000 (or fraction thereof) above the threshold.
Income limits and phase-out rules
The deduction begins to disappear if your modified adjusted gross income exceeds a base threshold. For the 2023 tax year, that threshold was $100,000 for single filers, heads of household, and married filing separately; $200,000 for married filing jointly. These thresholds are adjusted annually for inflation, so the 2024 limits (if the deduction is extended) will be slightly higher.
Once your income exceeds the threshold, the deduction reduces by 10 percent for each $1,000 of income above the limit. If you are a single filer earning $110,000 and the threshold is $100,000, you lose 10 percent of the deduction. At $120,000, you lose 20 percent. At $110,000 or above, the deduction disappears entirely for single filers.
Your modified adjusted gross income is not the same as your regular income. It includes certain items that are normally excluded from taxable income, such as foreign earned income and student loan interest. The IRS Form 1040 instructions will show you how to calculate it for the current year.
When PMI qualifies for the deduction
Not all mortgage insurance counts. The mortgage must have been taken out on or after December 16, 2006. If you refinanced an older mortgage, the new loan date is what matters — a refinance after December 15, 2006 can may have access to even if the original mortgage was older.
The insurance must be mortgage insurance premiums — the monthly or annual payments you make to protect the lender if you default. This includes PMI on conventional loans and mortgage insurance premiums (MIP) on FHA loans. It does not include homeowners insurance, title insurance, or hazard insurance, which are not deductible.
The loan must be secured by your main home or a second home. Investment properties do not may have access to. The debt must also be used to buy, build, or improve the home; a cash-out refinance where you borrow against equity for other purposes may not may have access to for the full deduction.
Itemizing versus the standard deduction
To claim the PMI deduction, you must itemize deductions on Schedule A of Form 1040. If you take the standard deduction instead, you cannot deduct PMI, even if you paid it.
For 2023, the standard deduction was $13,850 for single filers and $27,700 for married filing jointly. If your total itemized deductions — including mortgage interest, property taxes, charitable donations, and PMI — add up to less than the standard deduction, you will come out ahead by taking the standard deduction and skipping the PMI deduction.
Many homeowners find that the standard deduction is larger than their itemized deductions, especially after the Tax Cuts and Jobs Act of 2017 raised the standard deduction. Run the numbers both ways, or ask a tax professional, to see which approach saves you more.
How to claim the deduction on your return
If you itemize, you report PMI on line 8 of Schedule A (Form 1040), labeled "Mortgage insurance premiums." Your mortgage lender will send you a Form 1098 in January showing the PMI you paid in the previous year; use that figure as your starting point.
If your income exceeds the phase-out threshold, you will need to calculate the reduction. The IRS Worksheet for Mortgage Insurance Premiums (in the Schedule A instructions) walks you through this step by step. If you use tax software, it will usually calculate the phase-out automatically once you enter your income and PMI amount.
Keep your Form 1098 and any mortgage statements showing PMI payments. The IRS does not require you to attach them to your return, but you should keep them for your records in case you are audited.
What changed in recent years
The PMI deduction was originally set to expire after 2006 but has been extended by Congress multiple times. It was extended through 2023 in the Consolidated Appropriations Act of 2023. For 2024 and beyond, the deduction is not currently available unless Congress extends it again.
Tax law changes frequently, and Congress sometimes makes changes retroactively or extends provisions partway through a year. Before filing your return, check the IRS website or speak with a tax professional to confirm whether the deduction is available for the year you are filing.
If you paid PMI in a year when the deduction was not available, you cannot go back and claim it in a later year when it was extended. The deduction applies only to the tax year in which you paid the premiums.
When to talk to a tax professional
If your income is close to the phase-out threshold, or if you are unsure whether your mortgage qualifies, a tax professional can review your situation and calculate whether the deduction saves you money. They can also help you decide whether itemizing is worth the extra work compared to taking the standard deduction.
If you refinanced your mortgage, had a cash-out refinance, or own multiple properties, the rules become more complex. A CPA or tax attorney can sort through the details and make sure you are claiming only what you are may have access to to claim.
Frequently Asked Questions
Can I deduct PMI if I paid it off early?
Yes. PMI paid in a given tax year is deductible on that year's return, regardless of when you paid it off. If you paid off your mortgage in June and had paid PMI through June, you deduct the PMI for that year. You cannot deduct PMI paid after you paid off the loan.
Does FHA mortgage insurance count as PMI?
FHA loans use mortgage insurance premiums (MIP) instead of PMI, but the deduction rules are the same. Both are deductible under the same income limits and phase-out rules, as long as the loan was taken out after December 15, 2006.
What if I refinanced my mortgage?
If you refinanced after December 15, 2006, the new loan qualifies for the deduction. The original loan date does not matter. However, if you did a cash-out refinance and borrowed more than the original loan amount, only the PMI on the portion used to buy or improve the home may be deductible.
Can I deduct PMI on a rental property?
No. The PMI deduction applies only to your main home or a second home for personal use. Rental properties and investment properties do not may have access to. However, PMI on a rental property may be deductible as a business expense under different rules; consult a tax professional.
What if the deduction expires again?
If Congress does not extend the deduction, it will no longer be available for future tax years. You can only deduct PMI in years when the deduction is in effect. Check the IRS website or ask a tax professional each year to confirm the current status.