New 2025–2026 Tax Law Changes Every Homeowner Should Know - Homestead Financial Mortgage
To see a larger return, your total itemized deductions must exceed the , which is $32,200 for married couples filing jointly or $16,100 for individuals in 2026.
: Fees paid at closing to lower your interest rate are typically fully deductible in the year you buy the home. estimated tax return after buying a house
: Premiums are scheduled to be deductible again for the 2026 tax year . Potential Return Increase
: The deduction cap for property and state taxes quadrupled to $40,000 starting in 2025. New 2025–2026 Tax Law Changes Every Homeowner Should
Unlike deductions, which reduce taxable income, tax credits reduce your tax bill dollar-for-dollar.
For the (filed in 2026), your tax return could be significantly higher after buying a home, primarily due to recent law changes like the One Big Beautiful Bill Act (OBBBA) . While the national average refund is roughly $3,275 , homeowners in high-tax areas may see increases of $1,000 to $2,000+ if they choose to itemize their deductions. Key Homeowner Deductions Potential Return Increase : The deduction cap for
: For a homeowner in the 24% tax bracket , every $10,000 in deductible mortgage interest reduces their federal tax bill by approximately $2,400 . Direct Tax Credits