Is PMI Tax-Deductible? The 2024-2025 Answer

TL;DR: Private mortgage insurance was tax-deductible through tax year 2021, but the provision expired on December 31, 2021, and Congress has not renewed it for 2022, 2023, or 2024 returns. If you're filing now, you can't deduct PMI premiums unless a new law changes that, so check current IRS Schedule A instructions or your CPA before assuming otherwise.

_Last reviewed: August 2026 · 6 min read_

You've heard PMI used to be deductible, and you're wondering if that still applies to your tax return this year. It doesn't right now, but the history is worth knowing because the rule has flip-flopped before and could again.

Okoniq Property Hub helps homeowners track PMI payments, escrow changes, and loan milestones in one place, so you're not digging through a year of statements when tax season or a refinance decision comes around.

Was PMI ever tax-deductible?

Yes, from 2007 through 2021, homeowners who itemized could deduct private mortgage insurance premiums on Schedule A, subject to income limits. The deduction started with the Tax Relief and Health Care Act of 2006 and was extended multiple times, most recently through the Consolidated Appropriations Act of 2021, which covered the 2020 and 2021 tax years.

The deduction phased out for higher earners. Homeowners with adjusted gross income up to $100,000 could deduct the full premium amount. Between $100,000 and $109,000 AGI, the deduction shrank by 10% for every $1,000 over the threshold. Above $109,000, there was no deduction at all. Married filing separately used half those numbers.

The deduction also only helped if you itemized instead of taking the standard deduction, which after the 2017 tax law nearly doubled ($14,600 for single filers in 2024), fewer households itemize than they used to. If you understand how PMI works and when it drops, you already know the premium disappears on its own once you hit 78% loan-to-value, so the deduction was never permanent relief anyway.

Is PMI deductible on my 2024 or 2025 tax return?

No. The provision expired after tax year 2021 and has not been extended since. If you paid PMI in 2022, 2023, or 2024, that premium is not deductible on your federal return as things stand. Tax software that still shows a PMI deduction field may be carrying old logic or waiting on a legislative update, so don't rely on the software alone.

Congress has let this deduction lapse and revived it retroactively before, sometimes a full year later, which is confusing for anyone trying to plan ahead. The safest move is to check the current-year Schedule A instructions directly on irs.gov before filing, since those get updated the moment any retroactive change happens. If you're unsure whether last year's premiums qualify under a late extension, a CPA can check IRS guidance that isn't always reflected in consumer tax software right away.

Does this change whether I should try to remove PMI faster?

No, the tax status doesn't change the math on removing PMI, and getting rid of it sooner is worth it either way. PMI on a typical conventional loan runs 0.5% to 1.5% of the loan amount per year. On a $350,000 loan, that's $1,750 to $5,250 annually, money that buys you nothing once you've built enough equity.

Whether or not the premium is deductible, removing PMI faster through extra principal payments, a new appraisal, or reaching 20% equity saves you real cash every month it's gone. Homeowners sometimes delay tackling PMI because they assume the tax deduction offsets the cost, but even in years when the deduction existed, it only reduced taxable income, not the premium itself, and only for itemizers under the income cap.

| Scenario | PMI deductible? | What actually saves money | |---|---|---| | Tax year 2021 or earlier, AGI under $100K, itemizing | Yes | Deduction + eventual PMI drop | | Tax year 2022-2024, any income | No | Eventual PMI drop only | | Future year if Congress renews it | Possibly, check IRS.gov | Deduction + eventual PMI drop |

Should I plan around PMI coming back as deductible?

No, don't build your tax plan around a deduction that isn't currently law. If you're deciding between paying down PMI aggressively, refinancing to drop it, or waiting for a scheduled cancellation date, base the decision on the loan terms in front of you, not a possible future tax break.

If your PMI is baked into an escrow account, watch for how it interacts with your payment. Some borrowers only notice PMI charges when their escrow payment jumps and they trace it back to a PMI or insurance premium increase. Understanding your amortization schedule also helps you see exactly when your loan balance crosses the 78% mark where PMI must legally drop, regardless of what Congress does with the tax code.

What if I have an FHA loan instead of a conventional one?

FHA loans use mortgage insurance premiums (MIP), not PMI, and the same expired tax deduction rules applied to MIP too when it was active. MIP on FHA loans works differently from PMI in one important way: on loans originated after June 2013 with less than 10% down, MIP typically lasts for the life of the loan, not just until you hit 78% equity. That's one reason many FHA borrowers eventually look at refinancing to a conventional loan once their equity and credit improve, since it's often the only way to shed the premium entirely.

FAQ

Can I deduct PMI on my 2023 taxes filed in 2024?

No. The deduction expired after tax year 2021 and was not renewed for 2022 or 2023 returns, so PMI premiums paid in those years aren't deductible on federal returns.

What income limit applied when the PMI deduction was active?

Homeowners with adjusted gross income up to $100,000 got the full deduction, it phased out completely by $109,000, and married-filing-separately used half those thresholds.

Does mortgage interest still get deducted the same way as PMI did?

Yes, mortgage interest remains deductible under current law for itemizers, unlike PMI, and is reported on Form 1098 each year from your loan servicer.

If Congress renews the PMI deduction retroactively, how would I claim it?

You would typically need to file an amended return, Form 1040-X, for the affected tax year once the IRS issues guidance on the retroactive extension, so check IRS.gov or ask a CPA when that happens.

Is PMI different from homeowners insurance for tax purposes?

Yes, they're unrelated. Homeowners insurance premiums are never deductible on a personal residence, while PMI had its own temporary deduction rule that has since expired.

This is educational information, not tax advice. Talk to a CPA about your specific filing situation and check current IRS guidance before assuming any PMI deduction applies to your return.