Is PMI Tax Deductible?

Although there are different types of it, Private Mortgage Insurance (PMI) is something that every borrower pays when taking out a mortgage. The PMI is mandatory in every case and it’s actually a benefit of the lender, not the borrower – you.
The PMI is a fee that’s met with monthly payments, so it can add up to a substantial amount over time. Since this is directly tied to your mortgage, it is tax deductible. You can write off PMI paid on your federal income tax return, sure, but the same as every other tax provision, there is a catch. We’ll go over everything you need to know about writing off private mortgage insurance in this article.
PMI Eligibility Requirements
Not everybody is eligible for the PMI deduction though. Before you ask yourself – how do I know if my PMI qualifies for a deduction – know that you must itemize deductions. Those who take the standard deduction cannot deduct the PMI paid.
PMI income limit
There is also an income limit with the PMI deduction. If your adjusted gross income is less than $100,000, you get to write off the PMI fully. If it’s more than $100,000, you get a reduced deduction; however, it phases out completely at $109,000. Every $1,000 above the initial limit will get your deduction reduced by 10 percent. For example, if your AGI is $105,000, the deduction you get to claim is reduced by at least 50 percent. Use the PMI 1098 Form to figure out what portion of the PMI paid is deductible.
Can you deduct PMI in 2025?
The PMI is deductible for the 2024 and 2025 tax seasons. Taxpayers have the chance to deduct the allowed portion of their private mortgage insurance. Also known as the mortgage insurance premium, PMI deduction is a great way taxpayers can utilize to not only reduce how much they owe in taxes but make their actual monthly payments towards mortgage smaller. The government also gives other incentives to help taxpayers become homeowners.