February 3, 2026 Mortgage Insurance: Deductible Once Again Starting Tax Year 2026

Last year, President Trump and Congress reinstated and made permanent the federal tax deduction for mortgage insurance (MI) premiums with the enactment of the One Big Beautiful Bill Act. As you get ready to file taxes this year, keep in mind that the next time tax season rolls around (known as tax year 2026), qualifying homeowners will once again be able to deduct premiums paid to private MI companies and government agencies on their federal income taxes. This will be the first time since tax year 2021 that this deduction will be available and will make homeownership more affordable by providing meaningful tax relief for working-class homeowners, without increasing risk in the housing finance system.

MI premiums were previously deductible for tax years 2007-2021 and, during that time, the deduction was claimed 44.5 million times. At a time when access to homeownership can seem out of reach due to limited housing supply and high interest rates, Congress and President Trump are standing up for working-class Americans by restoring the tax deduction and delivering meaningful and targeted tax relief for homeowners by reinstating and making permanent the MI premium deduction.