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PMI / Mortgage Insurance Deduction Calculator

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Mortgage insurance deduction calculator

Your lender puts the year's total in Box 5 of the Form 1098 it sends you

The part you pay as you go, month by month or once a year. Leave out anything you paid as a lump sum when you closed on the loan, there is a question for that next. A rough total is fine, you can change it at the end and watch the number update.

What if my policy is older than 2007?

Only policies taken out after December 31, 2006 count, and that rule was never repealed. Almost every policy still running today started later, so leave this ticked unless you know otherwise. Untick it and the deduction is $0 whatever your income and whatever you paid.

Paid nothing at closing? Leave it at 0 and carry on

A single charge for mortgage insurance paid at closing, on top of anything you pay monthly. Your closing paperwork names it by loan type: upfront mortgage insurance premium on an FHA loan, funding fee on a VA loan, guarantee fee on a USDA loan, or a single premium policy on an ordinary loan. Most people paying month by month have nothing to put here.

What kind of home loan is that lump sum on?

It only changes how that lump sum is treated

A VA funding fee and a USDA guarantee fee count in full in the year you pay them. An FHA upfront premium, or an ordinary PMI policy paid in one go, has to be spread over 84 months instead, so only the months falling in 2026 count on this year's return. Your monthly premiums are treated the same way whichever loan you have.

When did you close on the loan, and how long does it run?

This only changes the answer if the loan runs less than seven years. Anything longer hits the 84 month limit first.

Only the months that fall in 2026 count this year

Your lump sum is split evenly over 84 months, or over the length of the loan if that is shorter, starting the month you got the insurance. Close in June and seven of those months land in 2026, so seven of them count on this year's return and the rest carries into later years. If you refinance or pay the loan off before the spreading ends, whatever is left is lost, not deducted at payoff.

How do you file your taxes?

Being married and filing together does not buy you a higher income limit

Being married and filing one return together does not buy you a higher income limit here. A couple filing together starts losing this deduction at the same $100,000 as a single person. The only different case is a married person who files their own separate return, who starts losing it at $50,000. Your answer also sets the flat standard deduction this is measured against.

Past $109,000 this deduction is gone completely, and $54,500 if you file your own separate return

Your pay and other income for the year, after a few adjustments. It is the figure on line 11 of your Form 1040, where it is printed as your adjusted gross income. Married and filing together? Add both incomes. From $100,000 up it starts shrinking, a tenth of it at a time for every $1,000 over, and by $109,000 there is none of it left.

This answer decides whether your mortgage insurance saves you anything at all

Mainly your mortgage interest and your state and local taxes (up to the $40,000 cap), plus your charitable gifts and anything else you would list one by one instead of taking the flat amount everyone is offered, which is called itemizing. Mortgage insurance only counts if you do that. Leave your mortgage insurance out of this box, it is counted already. Nothing to put here? Press Skip and we will treat it as none.

Your answer

These are example numbers. Type yours to see your own.

Do I have to list my write-offs one by one to get this?

Yes. Mortgage insurance goes on Schedule A beside your mortgage interest, so it only helps if your write-offs together beat the flat standard deduction, which for 2026 is $16,100 on your own, $32,200 filing together, and $24,150 as head of household. There is no version of this deduction for people who take the flat amount, unlike the 2026 change to charitable giving.

From 2026 you can once again take the mortgage insurance you pay off your taxable income. It had not been allowed since 2021. The monthly charge on an ordinary loan, FHA mortgage insurance, a VA funding fee and a USDA guarantee fee all count, but only if you already list your bigger expenses one by one on your tax return instead of taking the flat amount everyone is offered, which is called itemizing. It also fades fast as income rises: nothing at all once your income for the year passes $109,000, or $54,500 if you are married and send in your own separate return. Most articles say $110,000, and they are wrong. Fill in your numbers to see what counts and what it saves you. Everything runs in your browser, nothing is uploaded.

Estimate for general guidance only — not tax advice. Figures use the 2026 federal brackets and standard deductions (single/MFS $16,100 / married filing jointly $32,200 / head of household $24,150). Does not model loans above the $750,000 acquisition-debt cap, rental-property mortgage insurance (Schedule E, out of scope), or the general itemized-deduction §68 "2/37 rule" (it never touches this deduction — see below). Verify with the IRS or a tax professional.

Five things people get wrong about the 2026 PMI deduction

1. The cutoff is $109,000, not $110,000. Most articles round the phaseout to "$100k to $110k." The statute reduces the deduction by 10% for every $1,000 or fraction thereof that AGI exceeds $100,000 — so the tenth and final step is triggered by any AGI above $109,000, not at $110,000. Married filing separately: gone above $54,500, not $55,000.

2. There's no separate, higher threshold for married couples. Married filing jointly shares the exact same $100,000 starting point as a single filer or head of household — only married filing separately differs ($50,000, $500 steps). A married couple hits the same phaseout as a single person at the same income.

3. This wasn't a new law — it's an old one switched back on. The One Big Beautiful Bill Act didn't rewrite the mortgage insurance rules; it disabled the termination clause that had let the deduction expire after 2021. The phaseout and the pre-2007-contract rule are unchanged, word for word, since 2006 — and still aren't adjusted for inflation.

4. VA and USDA fees are deducted better than FHA's upfront premium, not worse. FHA's upfront mortgage insurance premium (UFMIP) and any single-premium PMI must be spread ratably over the shorter of your loan term or 84 months. A VA funding fee or USDA guarantee fee is exempt from that rule — fully deductible the year you pay it, even as a lump sum at closing.

5. You still have to itemize. Unlike the 2026 charitable-giving change, there is no non-itemizer version of this deduction. If your Schedule A total (mortgage insurance plus mortgage interest, SALT, charitable gifts) doesn't beat your standard deduction, the premiums qualify on paper but save you $0.

How the 2026 mortgage insurance premium deduction works

The mortgage insurance premium deduction (IRC §163(h)(3)(E)) let homeowners treat PMI and similar premiums as deductible mortgage interest. It expired after 2021. The One Big Beautiful Bill Act (§70108, signed 2025) brought it back permanently, effective for tax years beginning after December 31, 2025 — so tax year 2026 is the first year it applies again. Rather than writing new rules, Congress simply disabled the old law's expiration clause, leaving everything else — including the phaseout below — exactly as it was.

1. Who and what qualifies. Premiums for conventional PMI, FHA mortgage insurance (MIP and UFMIP), VA funding fees, and USDA (Rural Housing Service) guarantee fees all count, as long as they relate to acquisition debt on your main or second home and the insurance contract was issued after December 31, 2006.

2. The AGI phaseout. The deductible amount is reduced by 10% for every $1,000 (or fraction of $1,000) that your AGI — not modified AGI — exceeds $100,000. That means it's completely gone once AGI passes $109,000. Married filing separately uses $50,000 and $500 steps, eliminated above $54,500. Married filing jointly gets no special treatment here — same $100,000 start as everyone else except MFS.

3. Prepaid premiums are spread out — except VA and USDA. If you pay a lump sum upfront (FHA's UFMIP, or a single-premium PMI policy), you can't deduct it all in one year. It's amortized ratably over the shorter of your loan's term or 84 months, starting the month you got the insurance. Refinance or pay off the loan early, and the remaining unamortized balance is simply lost — not deductible at payoff. A VA funding fee or USDA guarantee fee skips all of this: fully deductible in the year paid, lump sum or not.

4. You must itemize. The premiums are added to the "Interest You Paid" section of Schedule A (line 8d on the last form the deduction was in effect, 2021 — the 2026 form isn't final yet). If your total itemized deductions don't exceed your standard deduction, the deduction produces $0 in real tax savings.

What doesn't touch this deduction. The new §68 "2/37 rule" that trims itemized deductions for top-bracket filers only kicks in well above the income where this deduction has already hit $0 — so it's irrelevant here, unlike for SALT or charitable giving. Loans above the $750,000 acquisition-debt cap and rental-property mortgage insurance (which is a Schedule E business expense, not this deduction) are both out of scope for this tool.

Refinancing or buying a home this year? See the same law's other Schedule A changes: the SALT deduction cap calculator and the charitable deduction calculator. Bought a car instead? Check the car loan interest deduction calculator.

A worked example: the FHA UFMIP amortization

David is single with a $90,000 AGI. He closed on an FHA loan in June 2026 with a $6,125 upfront mortgage insurance premium (UFMIP) and a 30-year (360-month) term, plus $1,600 of annual MIP paid through the rest of the year. Here's how 2026 treats it:

  • Amortize the UFMIP: the $6,125 is spread over the shorter of 360 months or the statutory 84-month cap — so 84 months, at $72.92/month. From June through December is 7 months, so $72.92 × 7 = $510.42 is deductible in 2026. The rest carries into future years.
  • Add the recurring MIP: $1,600 (paid as-you-go) + $510.42 (the 2026 UFMIP slice) = $2,110.42 qualifying premium.
  • The AGI phaseout: David's $90,000 AGI is under the $100,000 threshold, so none of it phases out — the full $2,110.42 is deductible on Schedule A, assuming he itemizes.

If David had instead paid a $8,000 VA funding fee with no monthly premium, the entire $8,000 would be deductible in 2026 — no 84-month spreading, because VA fees are exempt from the amortization rule.

Common questions

Is PMI tax deductible in 2026? Yes — the One Big Beautiful Bill Act permanently revived the deduction for tax years beginning after 2025, after it had lapsed since 2021.

What's the actual AGI cutoff? $109,000 ($54,500 married filing separately) — not $110,000/$55,000 as most articles say, because of a "$1,000 or fraction thereof" rounding rule.

Do married couples get a higher threshold? No. Married filing jointly shares the same $100,000 starting point as single and head of household filers.

Is FHA's upfront premium deducted differently than a VA funding fee? Yes. FHA UFMIP and single-premium PMI amortize over the shorter of the loan term or 84 months. VA funding fees and USDA guarantee fees are fully deductible the year paid — no amortization.

Do I need to itemize? Yes — this is a Schedule A itemized deduction only, with no non-itemizer alternative.

Does a pre-2007 mortgage insurance contract qualify? No. Only contracts issued after December 31, 2006 qualify — a restriction that's still on the books.

Why does the calculator ask what my other write-offs come to? Because that is what decides whether this deduction is worth anything. Mortgage insurance is added to the rest of your Schedule A total, and the whole pile has to beat your standard deduction before a single dollar of it changes your tax. Answer that question with nothing and the tool will tell you how much more you would need.

Is anything saved or uploaded? No. The tool is fully client-side — your numbers never leave your browser.

Sources: Public Law 119-21 §70108, enrolled statute text (govinfo); 26 USC §163(h) (Cornell LII); Treas. Reg. §1.163-11; IRS, Publication 936; IRS, Instructions for Form 1098; Rev. Proc. 2025-32 (2026 standard deduction).

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