Who still benefits from the mortgage interest deduction?

Fewer people than you'd think. You only benefit if your total itemized deductions (mortgage interest, up to $40,400 of state and local tax for 2026, charitable gifts) exceed the standard deduction, which is $16,100 single / $32,200 married filing jointly in 2026. With today's standard deduction, a couple needs a fairly large mortgage and other deductions before itemizing pays off. The interest is deductible on up to $750,000 of mortgage debt (or $1 million for loans taken before December 16, 2017) on a primary or second home. Early in a mortgage, when most of the payment is interest, the deduction is largest; later it shrinks. New buyers with big loans in high-cost areas are most likely to benefit. Run the comparison at wealthserene.com/tools/home-affordability before assuming the deduction changes your math.