You can deduct interest on up to $750,000 of mortgage debt for your primary residence and one secondary home ($1 million if the debt was taken before December 15, 2017). To claim the deduction, you must itemize on Schedule A rather than taking the standard deduction. Only interest on acquisition debt (money used to buy, build, or substantially improve the home) qualifies.
Deduction Details
You can deduct interest on up to $750,000 of qualified mortgage debt ($1 million for pre-2018 loans). This applies to your primary residence plus one secondary home. Points paid at closing are generally deductible over the life of the loan. Report the deduction on Schedule A (Form 1040).
Debt Limits
The limit applies to the total acquisition debt across both properties. If you have a $500,000 mortgage on your primary and a $300,000 mortgage on a vacation home, the full $800,000 is within the limit ($750,000 for new loans). Interest on anything above the limit is not deductible.
Itemizing vs Standard Deduction
For 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. If your total itemized deductions (mortgage interest, state and local taxes up to $10,000, charitable gifts) do not exceed the standard deduction, itemizing does not benefit you. Many homeowners no longer itemize because of the higher standard deduction.
Examples
A married couple with a $350,000 mortgage at 6.5% pays roughly $22,500 in interest the first year. With $10,000 in state and local taxes, their itemized deductions total $32,500. That exceeds the $30,000 standard deduction by $2,500, so itemizing saves them money. A smaller mortgage or lower rate might not cross the threshold.