Homeowner Tax Deductions: Maximize Your Savings While Making Home Sweet Home Even Sweeter

Owning a home comes with a lot of perks—cozy spaces, backyard barbecues, and the joy of making a place truly yours. But did you know it can also unlock some serious tax savings? Whether you’ve made upgrades this year or just want to take full advantage of homeowner-friendly deductions, here’s how to make sure you’re getting the most from your investment when tax time rolls around.

Mortgage Interest Deduction: A Major Win for Homeowners

If you’re making monthly mortgage payments, you’re likely eligible to deduct the interest you’ve paid on your mortgage—one of the biggest tax breaks for homeowners. You can deduct interest on up to $750,000 of mortgage debt (or $1 million if you purchased before December 16, 2017)[1] [2] . That’s real money staying in your pocket instead of going to Uncle Sam.

Home Improvements That Pay Off

Green home improvements can make your home more energy efficient and earn certain tax credits that could help save you money on your taxes. There are several energy efficient additions from installing an electric car charger at your home, to solar hot water heaters, solar panels, or qualified windows and doors that could earn you some tax savings.

Projects like energy-efficient windows, or a solar panel upgrade don’t just boost curb appeal—they may also qualify for tax credits. Energy-efficient home improvements can earn you a federal tax credit of up to 30% of the cost [3], making that eco-friendly choice even more rewarding. If you had qualified energy efficient items installed in your home like qualified insulation, windows, doors, and some solar roofing tiles and shingles you could claim the energy efficiency home improvement credit worth up to $1,200 per year [4].

Similarly the Residential Clean Energy Credit rewards you for investing in renewable energy for your home such as solar, wind, geothermal, fuel cells or battery storage technology. The credit is worth up to 30% of energy efficient equipment. If the credit is more than your total tax bill for the entire year, the remainder of the credit can be carried forward to next year but it won’t result in a bigger refund. It’s important to note the installation of these systems must be in the US and in your main home or in a second home that is used as your residence.

A home energy audit is a written report used to identify potential cost-effective energy improvements for your home. If you had a home energy audit completed you could claim a maximum tax credit of $150 (30% credit on audits that cost up to $500)[5] .

Any home improvement expenses required for medical care as prescribed could  qualify for a tax deduction too.

Property Tax Deduction: Keep More of Your Hard-Earned Cash

Nobody loves paying property taxes, but at least they’re deductible! Homeowners can deduct up to $10,000 in state and local property taxes[6] , which could provide some much-needed relief.

Interest on Home Equity Loans: Smart Borrowing Pays Off

Thinking about tapping into your home’s equity for improvements? The interest on home equity loans or HELOCs (Home Equity Lines of Credit) is deductible—if the funds are used for home improvements. For tax years 2018 through 2025, if the HELOC secured by your main home or second home is used to buy, build, or substantially improve your home, the interest you pay on the borrowed funds may be deductible up to certain limitations. Whether it’s a kitchen remodel or adding a dreamy backyard deck, your loan interest could help reduce your taxable income.

Maximize Your Rewards with Mesa

While tax deductions help reduce your financial burden, Mesa takes homeownership rewards a step further. As a top homeowner membership platform, Mesa rewards you on your largest monthly expense—your mortgage.

With the Mesa Homeowners Card, you can maximize your financial benefits in a few ways:

●  Earn rewards on your monthly mortgage payments* as well as everyday and home- related expenses.¹

●  Earn 3X Mesa Points when paying your property taxes, making an unavoidable expense more rewarding. ¹

●  Plus, get over $800 in value with Mesa’s Homeowner-Focused Benefits. See here for a full list.²

Make Homeownership More Rewarding

Your home is more than just a place to live—it’s an investment that can pay you back in more ways than one. By knowing which deductions and credits apply to you, you can maximize your savings while creating a home that’s comfortable, efficient, and financially rewarding.

So, as you gear up for tax season, take a little time to review your home expenses. You might just find that all those homeownership perks extend well beyond your front door—straight to your tax return!

*Up to 1000,000 Mesa Points annually. Subject to spending $1,000 in purchases on your card in the same statement period as your mortgage payment.

●  Rewards Terms and conditions apply.

●  Benefit Terms and conditions apply.

All Mesa Homeowners Visa Cards are powered by Highnote and issued by Celtic Bank. Visa is a registered trademark of Visa Inc. All cards are subject to credit approval.

The information provided is for informational purposes only. Please consult your tax advisor for guidance specific to your financial situation.

Sources:
[1 & 2] https://www.irs.gov/publications/p936
[3, 4, 5] https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
[6] https://www.irs.gov/taxtopics/tc503