5 Florida Homeowner Tax Deductions for 2026 (One Could Save You $12,000)
Most Florida homeowners pay more in taxes than they have to. Here's what to claim this year.
You're writing a bigger check to the IRS than you need to.
That's not an opinion. That's what happens when you don't know which deductions you're actually entitled to as a homeowner.
I'm not talking about fifty bucks. I'm talking hundreds — sometimes thousands — of dollars that Florida homeowners leave on the table every single year. Not because they're doing anything wrong. Because nobody told them.
That changes today.
Here are the five biggest homeowner tax deductions for 2026, including a brand-new one that just kicked in this year. That last one alone could put up to $12,000 back in your pocket — or your parents' pocket. Most people have never heard of it.
And before we get into it: I'm a mortgage professional, not a CPA. This is tax education, not tax advice. Talk to a qualified tax professional about your specific numbers. What I can do is make sure you walk into that conversation knowing the right questions to ask.
First, the Decision Every Homeowner Faces at Tax Time
There's a fork in the road. You either take the standard deduction — a flat amount the IRS gives everyone — or you itemize, meaning you list out every deduction one by one.
For 2026, here's where the standard deduction sits:
Single filer: ~$15,000
Married filing jointly: ~$30,000
That's the line you have to cross. If all your individual deductions added together are less than that number, you take the standard deduction and move on. If they add up to more, you itemize — and that's where the real savings happen.
Here's the question to ask yourself: Do my itemized deductions add up to more than my standard deduction?
That's the whole game.
A lot of homeowners default to the standard deduction because their accountant told them five years ago they didn't have enough to itemize. But the One Big Beautiful Bill Act, signed into law last year, changed things. Some deductions got bigger. Some came back from the dead. Brand-new ones were created.
Even if you couldn't itemize last year, you might be able to this year. Run the numbers again.
Deduction #1: Mortgage Interest
Everyone's heard of this one. Most people don't fully understand it.
Here's how it works. The interest you pay on your mortgage every month — on your primary home, whether it's a house, condo, or townhouse — can be deducted from your taxable income.
The cap is $750,000 in total mortgage debt. If your balance is under that number, all of your interest is deductible.
Your lender sends you a form called a 1098 at the start of every year. Look at Box 1. That's the number.
For homeowners who bought or refinanced in the last few years, that number can be significant. We're talking $10,000, $15,000, $20,000 or more in deductible interest — depending on your balance and rate.
One thing most people miss: this deduction also covers one second home, like a vacation property, as long as you personally use it for at least 14 days a year or 10% of the days it's rented — whichever is longer.
Action step: Pull your 1098. Look at Box 1. Write that number down.
Deduction #2: Property Taxes — The SALT Cap Just Got a Massive Upgrade
This is the one that might finally push you from standard to itemized. Pay attention.
It's called the SALT deduction — State and Local Taxes. For homeowners, the big piece is your property taxes.
For eight years, the federal government capped this deduction at $10,000. A lot of Florida homeowners — especially on the Treasure Coast — pay well above that in property taxes every year. The old cap left a lot of money unclaimed.
Under the new law, that cap just jumped to $40,000.
That's a four-times increase.
Florida doesn't have a state income tax, which is one of the reasons people move here. But if your property tax bill runs $12,000, $14,000, or more — under the old law you could only deduct $10,000 of that. Under the new law, you can deduct all of it.
There is one condition: your modified adjusted gross income needs to be under $500,000 to get the full benefit.
Action step: Pull up your property tax bill — your county property appraiser's website will have it. Write down what you actually paid in 2026. If it's above $10,000, the new law just put more money back in your pocket than the old one did.
Deduction #3: Discount Points — The One Most Homeowners Forget Completely
This one gets skipped all the time. Even some CPAs miss it.
When you close on a mortgage, you might pay what are called discount points — prepaid interest you pay upfront to get a lower rate on your loan.
Those points are tax deductible.
If you bought a home in 2026, you can typically deduct the full amount in the year you paid them. If you refinanced, you spread it out over the life of the loan — so a portion gets deducted each year.
I had a client who refinanced about a year ago, paid points at closing, and their CPA had no idea to claim them. Nobody mentioned it. They came to me for something unrelated, I asked about it, and we figured out they'd left over $1,000 in deductions just sitting there.
Action step: If you've closed on any mortgage in the last few years, go back and look at your closing disclosure. Search for the word "points" or "discount." If there's a number there, ask your tax professional whether you claimed it. If you didn't, you may be able to amend your return.
Deduction #4: PMI — It's Back, and It's Worth Claiming
This one was gone for a few years. It's back now.
If you put less than 20% down on a conventional loan, you're probably paying private mortgage insurance (PMI) every month. It protects the lender — not you — which is why most people can't stand it.
But starting in 2026, PMI premiums are tax deductible again. This deduction expired after 2021. The new law brought it back permanently.
Your PMI shows up on your 1098 form, usually in Box 5.
When this deduction was active before, the average homeowner who claimed it deducted around $2,300. That's real money.
There are income limits. The deduction starts phasing out when your adjusted gross income hits $100,000 and disappears completely at $110,000. If your income falls under that range, check Box 5 on your 1098.
Worth noting: this isn't just conventional PMI. VA funding fees and USDA guarantee fees may qualify too. If you're a veteran, that's worth a conversation with your tax professional.
Action step: Look at Box 5 on your 1098. If there's a number there and your income is under $100,000, you have another deduction to add to the pile.
Deduction #5: The New Senior Deduction — Up to $12,000 Nobody's Talking About
This is the one I saved for last. If you or your parents are 65 or older, read this twice.
The One Big Beautiful Bill created a brand-new deduction specifically for seniors.
If you're 65 or older, you can now claim an additional $6,000 deduction on top of your regular standard deduction. If you're married and both of you are 65 or older, that doubles to $12,000.
Here's the part that really matters: you can claim this whether you itemize or take the standard deduction. It stacks on top of everything else.
Here's what that looks like for a married couple, both over 65, with income under $150,000:
Standard deduction: ~$30,000
Existing senior standard deduction add-on: ~$3,200
New senior deduction: $12,000
Total: over $45,000 in tax-free income before you even look at itemized deductions
The deduction phases out above $75,000 for single filers and $150,000 for joint filers. It disappears completely at $175,000 for singles and $250,000 for couples.
It's available from 2025 through 2028. That's a limited window.
It's reported on the new Schedule 1-A.
Action step: If you're 65 or older — or if you have a parent who is — make sure whoever does your taxes knows this exists. If your tax preparer doesn't bring it up, you bring it up. Print this out and take it with you if you have to. Do not leave this one on the table.
The Bigger Picture
These five deductions don't exist in a vacuum. They connect directly to your mortgage situation — whether you're buying, refinancing, or just trying to understand how your home fits into your long-term financial picture.
That's what I do with every client I sit down with. We don't just look at rate and payment. We look at the whole picture: the mortgage, the taxes, how the numbers actually work together.
If you want to talk through how any of this applies to your situation, there's a link below to book a free strategy call. No sales pitch. Just a real conversation about your numbers.
Frequently Asked Questions
What is the standard deduction for Florida homeowners in 2026? For 2026, the standard deduction is approximately $15,000 for single filers and $30,000 for married couples filing jointly. You only benefit from itemizing if your individual deductions add up to more than those amounts.
What is the SALT deduction cap in 2026? The SALT (State and Local Tax) deduction cap increased to $40,000 in 2026 under the One Big Beautiful Bill Act, up from $10,000. Your modified adjusted gross income must be under $500,000 to claim the full amount.
Can Florida homeowners deduct property taxes? Yes. Property taxes are deductible as part of the SALT deduction, up to the new $40,000 cap. Since Florida has no state income tax, your property taxes are typically the main component of your SALT deduction.
Is PMI tax deductible in 2026? Yes. Private mortgage insurance premiums are tax deductible again starting in 2026. The deduction phases out between $100,000 and $110,000 in adjusted gross income. Check Box 5 on your 1098 form.
What is the new senior tax deduction for 2026? Homeowners 65 or older can claim an additional $6,000 deduction on top of their regular standard deduction. Married couples where both spouses are 65 or older can claim $12,000. This deduction is available whether you itemize or take the standard deduction and is reported on Schedule 1-A. It runs from 2025 through 2028.
Are discount points tax deductible? Yes. Points paid on a purchase mortgage are typically fully deductible in the year paid. Points paid on a refinance are spread out over the life of the loan. Check your closing disclosure for any points you may have paid but not yet claimed.
Do these deductions apply to homeowners in Georgia and Texas too? Yes. Mortgage interest, SALT, discount points, PMI, and the new senior deduction are all federal tax deductions, so they apply to homeowners in Florida, Georgia, and Texas alike. The specific amounts will vary based on your local property tax rates and individual financial picture.
Emmett Dempsey is a licensed mortgage broker serving Florida, Georgia, and Texas. This post is for educational purposes only and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.
Ready to talk about your mortgage and how it fits your bigger financial picture? Book a free strategy call here.
