Mortgage insurance premiums are not tax deductible for most homeowners, with one narrow exception for private mortgage insurance paid in 2024 or earlier.
If you put down less than 20 percent on a conventional loan, your lender requires private mortgage insurance (PMI). That monthly premium is not deductible on your federal tax return — it is treated as a cost of borrowing, not as a property tax or mortgage interest payment.
The one exception: PMI paid in tax year 2024 or earlier may be deductible if your modified adjusted gross income falls below certain thresholds (the limit was $109,000 for single filers and $218,000 for married filing jointly in 2024). This deduction expired at the end of 2024 and has not been extended by Congress. If you paid PMI in 2025 or later, you cannot deduct it.
Other types of mortgage insurance — FHA mortgage insurance premiums (MIP) and VA funding fees — also are not deductible. The only mortgage-related costs you can deduct are mortgage interest itself and property taxes, both of which have their own limits and rules.
Key Takeaways
- Private mortgage insurance (PMI) paid in 2025 and later is not deductible; the deduction expired at the end of 2024.
- PMI paid in 2024 or earlier was deductible only if your income was below the IRS threshold for that year, and only if you itemized deductions.
- FHA mortgage insurance premiums (MIP) and VA funding fees are never deductible on your federal tax return.
- Mortgage interest and property taxes are deductible, but only if you itemize deductions and stay within the $750,000 mortgage limit (or $375,000 if married filing separately).
Why mortgage insurance is not deductible like mortgage interest
The IRS treats mortgage insurance differently from mortgage interest because insurance protects the lender, not you. Mortgage interest is the cost of borrowing money; it reduces the principal you owe. Mortgage insurance is a fee the lender charges to cover their risk if you default — it is a cost of the loan structure, not a cost of the property itself.
This is why mortgage interest has always been deductible (within limits), while mortgage insurance has only been deductible in specific years when Congress extended that right. The deduction was temporary policy, not permanent tax law.
The PMI deduction that expired in 2024
From 2007 through 2024, homeowners could deduct PMI premiums if they met two conditions: their modified adjusted gross income was below the IRS threshold for that year, and they itemized deductions on their tax return (rather than taking the standard deduction).
The income thresholds changed each year. In 2024, single filers could deduct PMI if their income was $109,000 or less; married couples filing jointly could deduct it if their income was $218,000 or less. The deduction phased out — meaning it reduced gradually — as income rose above those thresholds.
This deduction is not available for 2025 or any year after. Congress would need to pass new legislation to restore it, and there is no current indication that will happen.
FHA loans and VA loans do not offer a mortgage insurance deduction
FHA mortgage insurance premiums (MIP) are never deductible. FHA loans require both an upfront mortgage insurance premium (usually rolled into the loan amount) and an annual premium paid monthly. Neither is deductible on your federal tax return.
VA funding fees are also not deductible. Veterans who use a VA loan pay a one-time funding fee (usually 2 to 3 percent of the loan amount), which can be rolled into the loan or paid upfront. This fee is not deductible.
If you have an FHA or VA loan and are looking for tax deductions, focus on mortgage interest and property taxes, which are deductible under the same rules that apply to conventional loans.
What you can still deduct: mortgage interest and property taxes
Even though mortgage insurance is not deductible, you can deduct two other housing costs: mortgage interest and property taxes. Both are deductible only if you itemize deductions on your tax return (most homeowners do not, because the standard deduction is higher).
Mortgage interest is deductible on loans up to $750,000 of principal ($375,000 if married filing separately). This limit applies to the total of all mortgages on your primary home and one other property. Property taxes are deductible up to $10,000 per year total, regardless of how many properties you own.
To claim these deductions, you will receive a Form 1098 Mortgage Interest Statement from your lender in January, showing how much interest you paid the previous year. Your property tax bill will show the amount you paid in property taxes. Both figures go on Schedule A when you itemize.
How to know if itemizing is worth it for you
The standard deduction for 2024 was $13,850 for single filers and $27,700 for married couples filing jointly. If your mortgage interest plus property taxes plus other deductible items (charitable donations, state income taxes, etc.) add up to more than the standard deduction, itemizing saves you money. If they do not, taking the standard deduction is simpler and gives you a larger deduction.
Many homeowners with mortgages do not itemize because the standard deduction is high enough. Run the numbers both ways, or ask a tax professional to compare them for your situation.
Removing PMI from your loan
Since PMI is not deductible and costs you money each month, most homeowners want to remove it as soon as possible. You can request PMI removal once you have paid down your loan to 80 percent of the home's original purchase price, or when your home has appreciated enough that you now have 20 percent equity.
Some lenders will remove PMI automatically once you reach 78 percent of the original loan amount, but you do not have to wait — you can request it earlier. You will need to provide proof of the home's current value (usually an appraisal, which you pay for) and show that you are current on your payments.
Removing PMI typically saves $100 to $300 per month, depending on your loan amount and the insurance rate. That is a much larger benefit than any tax deduction would have been.
Frequently Asked Questions
Can I deduct PMI if I paid it in 2024?
Only if your modified adjusted gross income was below the IRS threshold for 2024 and you itemized deductions. For 2024, the threshold was $109,000 for single filers and $218,000 for married filing jointly. If you meet those conditions, you can claim the deduction on your 2024 tax return. PMI paid in 2025 or later is not deductible.
Is mortgage insurance the same as PMI?
No. PMI is private mortgage insurance on conventional loans. FHA loans have mortgage insurance premiums (MIP), and VA loans have funding fees. All three protect the lender, but only PMI had a temporary tax deduction, and that expired in 2024. FHA MIP and VA funding fees were never deductible.
If I cannot deduct PMI, should I pay it off faster?
The best way to stop paying PMI is to build equity to 20 percent, then request removal. You do not need to pay off the entire loan faster — just reach that equity threshold. Once PMI is gone, that money stays in your pocket every month, which is better than any tax deduction.
Can I deduct property taxes and mortgage interest instead?
Yes, if you itemize deductions. Mortgage interest is deductible on loans up to $750,000, and property taxes are deductible up to $10,000 per year. But you only benefit if your total itemized deductions exceed the standard deduction, which many homeowners do not.