Is mortgage insurance tax deductible for 2026? For premiums that qualify, IRS guidance for the 2026 tax year says the deduction is available beginning in 2026. It’s an itemized deduction, though. That means it can help only on a return that itemizes, which means listing your deductions one by one.
Answers written for 2025 and earlier returns can say no, and they aren’t wrong about those years. The 2026 guidance is a different document. The tax year is what matters.
Here’s what the IRS says, which mortgages the rule covers, and where the amount shows up. It also helps to keep that separate from the loan decision.
What Does the IRS Say About Mortgage Insurance for 2026?
IRS Publication 505 for 2026 lists a change that starts with the 2026 tax year: the choice to deduct qualified mortgage insurance premiums is permanent. The publication ties that choice to home acquisition debt secured by a first or second home.
Publication 505’s entry begins: “Beginning in 2026, the election to deduct qualified mortgage insurance premiums paid under a mortgage insurance contract issued after December 31, 2006”. The publication says that election “has been made permanent.”
The premiums you pay during 2026 are the ones that rule speaks to. The return for the 2026 tax year gets filed in 2027.
Why Do Some Answers Still Say No?
IRS Publication 936 for 2025 returns said the deduction had expired. That edition is for use in preparing 2025 returns, so an answer written for 2025 or an earlier year can say no. The 2026 guidance is what applies to premiums paid in 2026.
The line in the 2025 publication is one sentence: “The itemized deduction for mortgage insurance premiums has expired.” That sentence speaks to 2025, not to 2026.
Check which tax year an answer is about before you rely on it. When two answers disagree, ask a tax professional.
Do You Have to Itemize to Deduct Mortgage Insurance?
Yes. The IRS describes it as an itemized deduction. That means it can matter only if your return lists your deductions one by one. Whether itemizing fits your return is a question for a tax professional. It isn’t something to assume from a loan decision.
Publication 936 calls it “the itemized deduction for mortgage insurance premiums”. That wording comes from the 2025 publication, while Publication 505 describes the election for 2026.
If you don’t itemize, a deduction on that list doesn’t change your return. The mortgage insurance still costs what it costs.
Which Mortgages Does the 2026 Rule Cover?
Publication 505 ties the 2026 rule to three conditions. The premiums have to be qualified mortgage insurance premiums. The insurance contract has to have been issued after December 31, 2006. And the loan has to be home acquisition debt secured by a first or second home.
The entry describes those premiums as paid “in connection with a home acquisition debt that was secured by a first or second home”. The phrase that matters there is home acquisition debt.
IRS Publication 936 describes home acquisition debt as “a mortgage you took out after October 13, 1987, to buy, build, or substantially improve a qualified home”. That publication says a qualified home is your main home or your second home.
Whether the premiums on your own loan count is a question for a tax professional. Bring your loan documents to that conversation.
Where Will You See What You Paid in Mortgage Insurance?
On Form 1098, the mortgage interest statement your servicer sends after the year ends. The servicer is the company you send your monthly payment to. IRS Publication 936 says the statement shows the interest you paid and the mortgage insurance premiums you paid, and that it should be sent to you by the end of January.
That publication says the statement will show the total interest you paid along with “any mortgage insurance premiums you paid”. It also sets the timing: “The statement for each year should be sent to you by January 31 of the following year.”
For the 2026 tax year, that points to January 31, 2027. Keep the statement with your tax papers when it arrives.
Should a Tax Deduction Change Which Loan You Choose?
It shouldn’t be the reason. Mortgage insurance is part of the cost of a loan with a smaller down payment, whether or not a deduction applies to you. And the deduction depends on your own return. Compare loan options on their full cost with a loan officer, and take tax questions to a tax professional.
Fellowship’s home purchase loan page puts it this way: “In the dynamic world of real estate, having a trusted advisor as your loan officer can make all the difference.” It also says: “We offer a range of mortgage options, designed to fit diverse financial needs and aspirations.”
If you’re weighing loan types, here’s when FHA mortgage insurance costs more than conventional PMI.
And if the real question is your down payment, take a look at whether to pay PMI now or wait for 20% down.
Frequently Asked Questions About Deducting Mortgage Insurance
Can I deduct mortgage insurance premiums I pay in 2026?
IRS Publication 505 for 2026 says the election to deduct qualified mortgage insurance premiums is permanent beginning in 2026, for insurance tied to home acquisition debt on a first or second home. It’s an itemized deduction, so ask a tax professional how it fits your return.
Why did I read that the mortgage insurance deduction expired?
IRS Publication 936 for 2025 returns said the deduction had expired. So an answer written for 2025 or an earlier year can say no. Check which tax year an answer is about before you rely on it, and look at the 2026 guidance for premiums paid in 2026.
Do I have to itemize to deduct mortgage insurance?
Yes. The IRS describes it as an itemized deduction, which means it belongs on a return that lists deductions one by one. Whether itemizing fits your return is a question for a tax professional, not something to decide from a loan comparison.
Does the deduction apply to mortgage insurance on a second home?
Publication 505 describes home acquisition debt secured by a first or second home, so a second home sits inside that description. Whether the premiums on your own loan qualify is a separate question, and it’s one for a tax professional who can look at your loan documents.
When will I get the form that shows my mortgage insurance premiums?
Form 1098 comes from your servicer, the company you send your monthly payment to. IRS Publication 936 says the statement for each year should be sent by January 31 of the following year, and it shows the mortgage insurance premiums you paid.
Should I put less down because mortgage insurance may be deductible?
That’s not a call to make from the tax side alone. The deduction depends on your own return and on itemizing, while mortgage insurance is a cost of the loan either way. Compare loan options on full cost with a loan officer, and ask a tax professional about the tax side.
What to Gather Before Tax Season
The 2026 rule is simple to state and personal to apply. So gather the papers a tax professional will ask for before the return is due, and keep the loan decision on its own track. One is a tax question. The other is a loan question.
- Your Form 1098 for 2026, when it arrives
- Your loan documents, showing what the loan was used for and when it was made
- Whether the home is your main home or a second home
- A question for your tax professional: does itemizing fit your return?
If you’re comparing loans and want to see how mortgage insurance fits the full cost, you can talk with a Fellowship loan officer about your home purchase.
