Good news! In 2025, Congress reinstated the previously expired tax deduction for PMI beginning with the 2026 tax year and made the provision permanent.

Congress often introduces new provisions into the tax code for budgetary or other reasons. They can specify a timeframe for those provisions, extend them for future years or even make them permanent.

Congress originally made PMI tax deductible in 2007, however, the deduction expired after the 2021 tax year.

For qualified homebuyers with PMI, particularly first-time and low-down-payment homebuyers, claiming the deduction on their taxes can help reduce their overall cost of homeownership.

According to U.S. Mortgage Insurers (USMI), between 2007 and 2021, four million homeowners claimed the deduction annually with deductions averaging $1,454 per qualified taxpayer. Collectively, the deduction was claimed 44 million times, representing $65 million in combined tax deductions.*

Qualified homeowners are eligible to take the deduction, including those who have conventional loans with PMI, as well as government-backed loans such as FHA, VA and USDA.

You should consult your tax advisor about the applicability of this deduction to your situation under the Internal Revenue Code and the laws of any other taxing jurisdiction.