Big Tax Breaks for Homeowners: What the “One Big Beautiful” Bill Means for You

Mortgage Interest Deduction Made Permanent
Homeowners can continue deducting interest on mortgage debt up to $750,000 (or $375,000 for single filers). This helps reduce your taxable income and, ultimately, the amount you owe each year.

Mortgage Insurance Premiums Are Back
If you pay FHA, VA, USDA, or private mortgage insurance, those premiums are once again deductible—provided your income is below $100,000. This could put extra cash back in your pocket annually.

SALT Deduction Cap Raised
The cap on state and local tax deductions (SALT) jumps from $10,000 to $40,000 through 2029. This is a huge win for homeowners in higher-tax states, where property and state income taxes often exceed previous limits.

Step 2: Explore New Benefits for Seniors

Senior Deduction Introduced
Adults aged 65 and older can now claim an additional $6,000 deduction (or $12,000 for couples). For many retirees, this could significantly lower or even eliminate federal taxes on Social Security income.

Income Limits Apply
This deduction begins to phase out for individuals earning over $75,000 and couples earning over $150,000, with a full phase-out at $175,000 and $250,000, respectively.

Step 3: Watch for Affordable Housing Boosts

Opportunity Zone Expansion
The bill allocates funding for thousands of new housing units in designated Opportunity Zones. This could increase housing supply and improve affordability in key markets, benefiting buyers and investors alike.

Step 4: Understand What This Means for You

Whether you’re:

• A retiree hoping to age in place while keeping more of their Social Security benefits,
• A first-time buyer navigating high housing costs, or
• A homeowner in a high-tax state looking for relief,

The OBBBA offers meaningful financial incentives. These changes could help you lower your taxable income, reduce monthly housing costs, and make owning a home more financially sustainable.

Conclusion: A Big Win for Homeowners

The One Big Beautiful Bill Act of 2025 represents one of the most significant homeowner-friendly tax changes in recent years. By understanding these updates, you can position yourself to maximize savings and plan your financial future more effectively.

If you have questions about how the OBBBA impacts your specific situation, reach out to your tax professional—or connect with me directly. Let's make your homeownership journey as seamless as possible!

Contact Adam Friedlander with District Lending today at 602-550-2662 or adam@districtlending.com to learn how to turn your dream of homeownership into a reality. Or local real estate insights tailored to your needs.