3 Smart Tax Moves Every Homeowner Should Know

Owning a home opens up opportunities to lower your taxes if you know where to look. Let’s break down the three most impactful tax moves to help you hold onto more of your money.

1. Mortgage Interest Deduction

Homeowners who itemize can deduct the interest on up to $750,000 in home acquisition debt, a benefit now made permanent under the “One Big Beautiful Bill” act.

This deduction directly reduces your taxable income and can translate into hundreds (or even thousands) in annual savings.

2. Property Tax Deduction (SALT Cap Upgraded)

Previously capped at $10,000, the State and Local Tax (SALT) deduction ceiling has increased to $40,000 for 2025–2029 – great news for higher-tax areas.

If you itemize, this expanded cap could significantly lower your taxable income.

3. Energy Efficiency & Clean Energy Tax Credits

• Energy Efficient Home Improvement Credit: Covers up to 30% of qualifying upgrades (like new windows, insulation, doors) capped at $1,200/year.

• Residential Clean Energy Credit: Also 30%, applies to larger investments like solar panels and heat pumps; no annual cap for most systems but expires after 2025.

These are dollar-for-dollar reductions in your tax bill—one of the strongest savings tools available.

Why These Matter

• Control & Security: These breaks put money back in your pocket while growing your home equity.

• Validation: Smart homeowners recognize and leverage tax benefits that suit their lifestyle.

• Freedom: More savings mean more flexibility—whether that’s reinvesting in your home or just enjoying life.