PMI Tax Deduction Calculator

Reinstated permanently from 2026 (OBBBA)

PMI Tax Deduction Calculator

Mortgage insurance premiums are deductible again. See how much, after the AGI phase-out.

Private mortgage insurance — and FHA, VA, and USDA equivalents — was deductible from 2007 through 2021, then disappeared for tax years 2022 through 2025. The One Big Beautiful Bill Act brings it back permanently starting with the 2026 tax year, treating those premiums as deductible mortgage interest. There's a catch: the deduction phases out for higher earners. This calculator shows exactly how much of your PMI you can deduct.

Filing status
$
$
From Form 1098, Box 5 — monthly PMI/MIP premiums.
Please enter your AGI to calculate.
Deductible mortgage insurance premium
$0
After the AGI phase-out is applied.
Phase-out reduction
0%
Approx. tax saving (22% rate)
$0
!

Missing AGI figure

Please enter your AGI before calculating — it's the required field.

How the PMI deduction phase-out works

The deduction is reduced by 10% for every $1,000 (or part of $1,000) your AGI exceeds $100,000 — or $50,000 if married filing separately. By the time AGI hits $109,000–$110,000 ($54,500–$55,000 MFS), the deduction is gone entirely. The phase-out is steep: most of the benefit disappears across a narrow $10,000 income band.

The phase-out formula
Reduction % = 10% × ceiling((AGI − $100,000) ÷ $1,000)
Deductible premium = total premium × (1 − reduction %)
Worked example — AGI $104,500, $2,400 in premiums paid: AGI is $4,500 over $100,000, rounding up to 5 thousand-dollar increments = 50% reduction. Deductible = $2,400 × 50% = $1,200.

Who qualifies

  • You must itemize deductions on Schedule A — no benefit if you take the standard deduction.
  • The mortgage must be acquisition debt on a qualified residence (your main home or a second home), within the $750,000 mortgage debt cap.
  • Covers conventional PMI, FHA mortgage insurance premiums (MIP), VA funding fees, and USDA guarantee fees.
  • Only applies to premiums paid from 1 January 2026 onward — premiums paid in 2022 through 2025 are not deductible under any circumstances, even retroactively.

Monthly premiums vs upfront premiums

Standard monthly PMI and monthly FHA MIP are fully deductible in the year you pay them. Upfront premiums — FHA's upfront MIP, the VA funding fee, or USDA's upfront guarantee fee — can't be deducted all at once. They must be amortized (spread) over the shorter of your loan term or 84 months (7 years), even if you paid the full amount in cash at closing or rolled it into your loan balance.

Run the numbers on the bigger picture

If you're weighing whether a smaller down payment plus PMI beats waiting to save 20%, model both paths with the down payment calculator and mortgage calculator. For LMI (the Australian equivalent of PMI), see the separate LMI calculator. To see your full itemized vs. standard deduction picture, pair this with the SALT deduction calculator and income tax calculator.

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Frequently asked questions

Is PMI tax deductible in 2026?+
Yes. The One Big Beautiful Bill Act permanently reinstated the mortgage insurance premium deduction starting with the 2026 tax year. It was not deductible for 2022 through 2025.
What income disqualifies me from the PMI deduction?+
The deduction phases out between $100,000 and $110,000 AGI ($50,000–$55,000 if married filing separately), reducing 10% for every $1,000 over $100,000. Above $110,000 AGI ($55,000 MFS), the deduction is fully phased out.
Do I need to itemize to claim the PMI deduction?+
Yes. It's claimed on Schedule A as part of itemized deductions. If your total itemized deductions don't exceed the standard deduction, claiming PMI won't provide any additional tax benefit.
Does this cover FHA, VA, and USDA loans too?+
Yes. The deduction covers conventional PMI, FHA mortgage insurance premiums (both upfront and monthly MIP), VA funding fees, and USDA guarantee fees — all treated the same way as qualified residence interest.
Can I deduct PMI I paid in 2024 or 2025?+
No. The deduction only applies to premiums paid for tax years beginning after December 31, 2025. Premiums paid during the 2022–2025 gap period are not deductible, even though the deduction has now returned.
How do I deduct an upfront FHA or VA premium?+
Upfront premiums must be amortized over the shorter of your loan term or 84 months (7 years), rather than deducted all at once. You deduct only that year's portion of the amortized amount, even if you paid it in full at closing.
Is this the same as PMI on a rental property?+
No — and this is an important distinction. Mortgage insurance on rental, investment, or business property has always remained deductible as an ordinary business expense and was never affected by the 2022–2025 gap. This calculator covers PMI on your personal residence only.
This calculator provides general estimates only and is not tax or legal advice. It models the OBBBA's reinstated PMI/mortgage insurance deduction and standard AGI phase-out for the 2026 tax year onward, applicable to a primary or second qualified residence within the $750,000 mortgage debt cap. It does not model the amortization schedule for upfront premiums in detail. Confirm your specific deduction with a tax professional.

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