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Most people think of homeownership as one big expense. And I get it, between mortgage payments, maintenance, insurance, taxes… the list seems never-ending. But what often gets overlooked is the way your home can pay you back when tax season rolls around.

If you're a homeowner, you may be sitting on deductions and credits that could reduce your taxable income, boost your refund, or soften the blow of what you owe. Here's how to take full advantage of that financial upside.

Homeownership = Tax Write-Off Opportunities

Let’s break down the most common tax perks homeowners may qualify for:

Mortgage Interest Deduction

You can deduct interest paid on your mortgage for up to $750,000 of debt ($375,000 if married filing separately). This can be a major write-off in the early years of your mortgage when interest makes up most of your monthly payment.

Property Tax Deduction

You can deduct up to $10,000 in combined state and local property taxes (or $5,000 if filing separately). Just make sure you're itemizing your deductions to claim it.

Home Office Deduction

If you’re self-employed and use part of your home exclusively for business, you may be able to deduct a portion of your home expenses—like utilities, rent or mortgage interest, and internet.

Energy-Efficient Upgrade Credits

Made any upgrades like new insulation, windows, or solar panels? The IRS offers credits of up to 30% of the cost for qualifying improvements.

Primary Residence vs Investment Property Tax Benefits

Depreciation

An additional deduction for investors is depreciation- or the rate at which your home loses value over time. As a general rule, you take the home’s value, divide by 27, and you are able to deduct that amount from your income taxes! That can be a massive number. Depreciation is one of the major reasons that investors add real estate to their portfolio.

Maintenance Costs

Maintaining any home can be costly- but on your primary home those costs are just the price of owning a home- vs with an investment property, the costs of repairs and maintenance can be tax deductible! Need a new roof or costly HVAC system? Write them off!

Management and Broker Costs

Depending on your situation, you may be able to hire a management company to handle all of your landlord responsibilities- and that cost may be tax deductible! Additionally, the professional fees chaged by brokers may be deductible as well if you are a real estate investor.

Renters vs. Homeowners at Tax Time

So how does owning a home really stack up when tax season hits? Here's a quick breakdown of how renters and homeowners compare when it comes to tax benefits.

Renters:

Pay monthly rent with no long-term return
Can’t deduct property taxes
Limited or no tax benefit for a home office
Any upgrades or improvements benefit the landlord
No equity building or tax-based advantages

Homeowners:

Mortgage payments may offer a mortgage interest deduction
Can deduct up to $10,000 in state and local property taxes
Home office deduction available for self-employed individuals
May qualify for energy efficiency tax credits (up to 30%)
Build equity over time plus tax advantages

Your Homeowner Tax Checklist

Before you file, here’s what to gather and review:

Form 1098 – From your lender; shows how much mortgage interest you paid
Property tax statements – Track what you paid through the year
Receipts for home improvements – Especially energy-efficient upgrades
Home office documentation – Square footage, utility bills, and business use records
Closing documents – If you bought or sold a home in the past year
Records of energy credits claimed – For multi-year upgrades (like solar)

Owning a home can absolutely pay you back if you know where to look. And while this gives you a solid head start, your situation may involve additional savings opportunities.

Talk to a tax pro before you file, especially if you sold your home, worked from home, or made major upgrades last year.