Mortgage interest deduction allows homeowners to reduce their taxable income by the amount of interest paid on a qualifying home loan!
From the National Association of Realtors
The National Association of Realtors (NAR) is emphasizing the continued importance of the mortgage interest deduction (MID) following the 2025 tax reform law, H.R.1, which preserved the benefit for qualifying homeowners. The MID allows taxpayers who itemize to deduct interest paid on a home loan — up to $750,000 on a primary or secondary residence — from their taxable income, often providing significant savings and a financial incentive for first-time buyers. A recent NAR survey found 91% of voters support keeping the deduction, though many homeowners no longer benefit due to higher standard deductions. NAR encourages real estate professionals to understand the MID so they can advise clients on buying, selling or refinancing, highlighting the deduction as a key tool in promoting homeownership and supporting the housing market.
Source: NAR
SALT Deduction Cap Delivers Relief to Homeowners
The Mortgage Interest Tax Deduction | H&R Block®
Four Months Ago from the National Association of Realtors (abridged)
The U.S. Senate on Tuesday passed sweeping tax reform legislation—packed with major real estate provisions championed by the National Association of REALTORS®.
The U.S. House of Representatives passed its version of the One Big Beautiful Bill on May 22. It is expected to take up and approve the Senate-amended version in the coming days, sending the legislation to the president’s desk for signature shortly thereafter. (The House passed the Senate’s version July 23, 2025.)
NAR successfully secured its top five priorities in the final package, alongside several other provisions that support homeownership and strengthen the real estate economy.
NAR’s Top Five Real Estate Wins
The bill includes NAR’s five key priorities:
- A permanent extension of lower individual tax rates
- An enhanced and permanent qualified business income deduction (Section 199A)
- A temporary (five-year) quadrupling of the state and local tax (SALT) deduction cap, beginning for 2025
- Protection for business SALT deductions and 1031 like-kind exchanges
- A permanent extension of the mortgage interest deduction
“These provisions form the backbone of the real estate economy—from supporting first-time and first-generation buyers to strengthening investment in housing supply and protecting existing homeowners,” McGahn says. “Real estate makes up nearly one-fifth of the entire U.S. economy, and we made sure policymakers understood that homeownership is the essential component to building wealth and a strong, prosperous middle class.”
Additional Wins for the Real Estate Economy
Several other provisions in the bill championed by NAR add to its positive impact on the real estate sector:
- Low-Income Housing Tax Credit (LIHTC): Key provisions from the LIHTC Improvement Act are included on a permanent basis to support affordable housing development.
- Child Tax Credit Increased to $2,200: Permanently raises the credit, with inflation indexing. This provision could ease housing affordability for families.
- Permanent Estate and Gift Tax Threshold Set at $15 Million (Inflation-adjusted): Prevents a sharp drop in exemption levels and supports generational wealth transfer.
- No increase to the top individual tax rate: The proposed 39.6% rate was removed from the bill.
