{"id":45745,"date":"2026-06-25T03:26:11","date_gmt":"2026-06-25T10:26:11","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=45745"},"modified":"2026-06-29T02:00:02","modified_gmt":"2026-06-29T09:00:02","slug":"is-home-equity-loan-interest-tax-deductible","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/is-home-equity-loan-interest-tax-deductible\/","title":{"rendered":"Is Home Equity Loan Interest Tax Deductible? (Simply Put)"},"content":{"rendered":"<p><a href=\"https:\/\/www.homelight.com\/blog\/buyer-how-much-equity-can-i-borrow-from-my-home\/\">Home equity loans<\/a> are something a lot of homeowners start looking into when bills pile up or a big expense pops up out of nowhere. Borrowing against the same home you live in can feel a bit unfamiliar at first, but it\u2019s actually pretty common. As you <a href=\"https:\/\/www.homelight.com\/blog\/should-i-pay-off-mortgage\/\">pay down your mortgage<\/a> and your <a href=\"https:\/\/www.homelight.com\/blog\/what-makes-property-value-increase\/\">home value goes up<\/a>, you start <a href=\"https:\/\/www.homelight.com\/blog\/buyer-building-equity-in-a-home-is-a-good-thing-because\/\">building equity<\/a> in the background. That\u2019s usually when the question comes in: Is home equity loan interest tax-deductible?<\/p>\n<p>The average homeowner is sitting on about <a href=\"https:\/\/themortgagereports.com\/108999\/home-equity-gains\">$295,000 in home equity<\/a>. A lot of that value is just sitting there quietly, even though it can often be tapped when needed. So it\u2019s no surprise people start wondering how to use it wisely without getting hit with unexpected tax costs.<\/p>\n\n\n\n\n\n<div class=\"geo-cta widget-cta widget-cta--content     widget-cta--dark widget-cta--dark-blue-gradient\">\n    <div class=\"widget-element--content\">\n        <div class=\"widget-element--content-header\">\n            <img decoding=\"async\" alt=\"homelight logo\" class=\"widget-element--logo\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\" width=\"106\" height=\"25\" \/>\n        <\/div>\n        \n                <h3 class=\"cta-headline widget--bold\">How Much Is Your Home Worth Now?<\/h3>\n                        <p>Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight&#8217;s free Home Value Estimator.<\/p>\n        \n                <div class=\"widget-element--buttons\">\n            <a data-type=\"In Content CTA\" href=\"https:\/\/www.homelight.com\/simple-home-value\/quiz?#\/qaas=0\/\" class=\"cta-click-track widget-element--button\">Get Estimate<\/a>\n        <\/div>\n                    <\/div>\n<\/div>\n\n\n<div id=\"section--1\" data-toc-header=\"Is home equity loan interest tax deductible?\" data-toc-type=\"head\"><\/div>\n<h2>Is home equity loan interest tax deductible?<\/h2>\n<p>Simply put, taxpayers can deduct the interest on a <a href=\"https:\/\/www.homelight.com\/blog\/buyer-heloc-vs-home-equity-loan\/\">home equity loan or a home equity line of credit (HELOC)<\/a> if they use the money to fix up or <a href=\"https:\/\/www.homelight.com\/blog\/what-upgrades-increase-home-value\/\">improve the home<\/a> that the loan is tied to.<\/p>\n<p>Some additional rules and limits apply when loan amounts get larger or when multiple home equity loans are combined. But since the average home equity loan is around <a href=\"https:\/\/www.lendingtree.com\/home\/mortgage\/home-equity-loans-study\/\">$144,000<\/a> and HELOC balances average about <a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/research\/home-equity-line-of-credit-study\/\">$45,000<\/a>, most homeowners don\u2019t run into the more complicated <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p936.pdf\">IRS Publication 936<\/a> limits on deducting mortgage interest.<\/p>\n<p>Nevertheless, we will share this overview note provided by the IRS:<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is home equity loan interest tax deductible? Learn rules for qualified home use, IRS limits, and when you can claim itemized deductions.<\/p>\n","protected":false},"author":298,"featured_media":45746,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[343,322],"tags":[],"class_list":["post-45745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finances","category-logistics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.9 (Yoast SEO v27.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Is Home Equity Loan Interest Tax Deductible? (Simply Put)<\/title>\n<meta name=\"description\" content=\"Is home equity loan interest tax deductible? 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