For the 2026 tax year, buying a home offers several major federal tax breaks, primarily through that reduce your taxable income. The most significant change for 2026 is a quadrupled limit for state and local tax (SALT) deductions under the One Big Beautiful Bill Act (OBBBA) . 1. Mortgage Interest Deduction
This is often the largest benefit. You can deduct interest paid on up to of mortgage debt for your primary or second home. how much of a tax break for buying a house
: If your mortgage was taken out before December 16, 2017, you may still be eligible for the older, higher $1 million limit. For the 2026 tax year, buying a home