CalculatorIs PMI Tax Deductible?
TL;DR— Quick Summary
- PMI is not tax deductible on 2024 or 2025 federal returns per IRS Publication 936
- The deduction last applied to premiums paid through tax year 2021
- Mortgage interest remains deductible up to $750,000 in loan debt if you itemize
- Form 1098 Box 5 shows PMI paid but should not be deducted on current returns
- Congress reinstated the PMI deduction for tax year 2026 per July 2025 legislation
Is PMI Tax Deductible?
Quick answer: PMI is not tax deductible on your 2024 or 2025 federal income tax return. The IRS states the mortgage insurance premium deduction has expired and you can no longer claim it. The deduction was last available for premiums paid through tax year 2021.
If you itemize deductions, do not include PMI from Form 1098 Box 5 on Schedule A for 2024 or 2025 returns.
What the Law Currently Says
Congress first made PMI tax deductible in 2007. The deduction was extended several times but expired after tax year 2021.
IRS Publication 936 (2025) states directly: "The itemized deduction for mortgage insurance premiums has expired. You can no longer claim the deduction."
| Tax year | PMI deductible? | Notes |
|---|---|---|
| 2018–2021 | Yes (if itemizing, income limits applied) | Average deduction about $1,454/year per USMI data |
| 2022–2025 | No | IRS confirms expiration in Pub. 936 |
| 2026+ | Pending reinstatement | Congress reinstated the deduction in July 2025 legislation for premiums paid starting tax year 2026 (returns filed in 2027) per industry sources |
For your 2024 return (filed in 2025) and 2025 return (filed in 2026), treat PMI as not deductible unless IRS guidance changes before you file.
The last year you could claim PMI on a current-year return was 2021. You may still file an amended 2021 return (Form 1040-X) if within the 3-year amendment window.
What You Can Deduct Instead
Mortgage interest remains deductible if you itemize — PMI does not replace it.
2025 mortgage interest limits (IRS Pub. 936):
- Loans originated after December 15, 2017: deduct interest on up to $750,000 of mortgage debt ($375,000 if married filing separately)
- Loans originated before December 16, 2017: up to $1,000,000 ($500,000 if MFS)
Example: You paid $18,000 in mortgage interest and $2,400 in PMI on a $300,000 loan.
- Deductible: $18,000 interest (if itemizing and within loan limits)
- Not deductible: $2,400 PMI on 2024/2025 returns
Standard vs. itemized: For 2025, the standard deduction is $15,000 (single) or $30,000 (married filing jointly). You only benefit from itemizing if total deductions exceed your standard deduction amount.
Property taxes are deductible up to $10,000 combined with state and local taxes (SALT cap) — separate from PMI.
If You Work From Home
The home office deduction does not include PMI. You may deduct a portion of mortgage interest, property taxes, utilities, and maintenance for a dedicated workspace — but PMI premiums are excluded.
To qualify, your home office must be used regularly and exclusively for business. The simplified method allows $5 per square foot up to 300 square feet ($1,500 max) without itemizing actual expenses.
PMI stays non-deductible regardless of whether you use the home office deduction or itemize mortgage interest separately.
What to Do at Tax Time
Check Form 1098. Your lender sends this by January 31. Box 1 shows mortgage interest (deductible if itemizing). Box 5 may show PMI — do not deduct it on 2024/2025 returns per current IRS rules.
Read IRS Publication 936. Available free at irs.gov. It covers mortgage interest limits and confirms PMI is not deductible.
Talk to a CPA or tax preparer. Tax rules change. A professional can confirm whether the 2026 reinstatement applies to your situation and help you maximize other deductions.
Keep PMI statements. Even though PMI is not currently deductible, records help if Congress retroactively extends the deduction or if you amend a prior-year return.
Focus on removing PMI. Canceling PMI at 80% LTV saves $150 to $350/month — far more than the tax deduction ever provided. See how to cancel PMI.
When PMI was deductible (2018–2021), the average qualifying homeowner saved about $1,454 per year according to USMI industry data — roughly $121/month. Removing PMI entirely beats that savings for most borrowers within the first year of cancellation.
Frequently Asked Questions
Is PMI tax deductible?
No for 2024 and 2025 tax years. IRS Publication 936 states the mortgage insurance premium deduction has expired.
When was PMI last tax deductible?
Tax year 2021 was the last year PMI was deductible on a federal return (for borrowers who itemized and met income limits).
Can I deduct PMI in 2024 or 2025?
No under current IRS guidance. Do not include Form 1098 Box 5 PMI amounts on Schedule A for these tax years.
What mortgage costs are tax deductible?
Mortgage interest (within loan limits) and property taxes (subject to the $10,000 SALT cap) if you itemize. PMI is not currently deductible.
Where do I find my PMI amount for taxes?
Form 1098 Box 5 shows mortgage insurance premiums paid. Your servicer mails this by January 31 each year.
Ready to compare mortgage options? Get a free quote through LendingTree to see rates with and without PMI.
About the author
CalculatorBasics Financial Team researches mortgage, lending, and calculator strategy topics with a focus on practical decisions and transparent assumptions.