- Home
- Personal Finance
- Insurance
- Home Insurance
With home insurance rates on the rise, you might be hoping to at least claim the soaring cost as a tax deduction. Here's what you need to know ahead of tax season.
By
Rachael Green
published
9 January 2026
in Features
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
Share Share by:- Copy link
- X
Homeownership is expensive enough as it is. So many homeowners are always on the lookout for ways to offset the costs and pad their emergency fund. With tax season approaching, one of the best ways to do that is claim tax credits and tax deductions you're eligible for as a homeowner.
While there are many tax breaks for homeowners filing their 2025 taxes – like mortgage interest or property taxes – home insurance is unfortunately not one of them, except in a few circumstances.
Still, it's worth understanding when and how you can deduct home insurance premiums, just in case one of those circumstances applies to you.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
CLICK FOR FREE ISSUE
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Sign upWhen is home insurance tax deductible?
Home insurance premiums generally aren’t tax-deductible. However, in certain situations, you may be able to deduct all or part of those costs as a business expense, which can lower your taxable income. Those scenarios include:
You have a home office or use your home for business:
If you work from home or use it for business purposes — for example, running a daycare out of your home — you can claim a portion of your home insurance premiums and other home expenses as a business expense.
You're paying for home insurance on your rental properties:
If you own rental properties, your home insurance premiums will also count as a business expense, helping to lower your taxable income. Just be sure to keep your personal and business records separate and consult a financial adviser or tax professional for trickier situations, like renting out your vacation home for part of the year.
One related change to watch starting in 2026 involves private mortgage insurance (PMI). Under new tax rules, PMI tied to home purchase loans will be treated as deductible mortgage interest for taxpayers who itemize.
That means some homeowners who pay PMI and itemize their deductions may be able to deduct those premiums going forward.
However, this applies to mortgage insurance — not standard homeowners insurance — and won’t affect 2025 tax returns. Income limits and other eligibility rules may also apply, so it’s worth checking with a tax professional before assuming you’ll qualify.
Keep track of all of your home expenses anyway
While you generally can’t deduct homeowners insurance premiums, other housing-related expenses may qualify for tax breaks.
Certain mortgage-related costs that aren’t deductible today may become eligible again in future tax years, depending on legislative changes. Keeping good records of your home expenses can help you stay ready to take advantage of any savings opportunities that open up.
In the meantime, you can offset the cost of protecting your home by shopping around for lower premiums. Use the tool below, powered by Bankrate, to see how much you could save on home insurance:
Related content
- Reasons Your Home Insurance Costs Are Surging
- What Is the 80% Rule in Home Insurance?
- Should You Get Home or Car Insurance Through Costco?
- Surprising Things Your Home Insurance Won't Cover
Rachael GreenSocial Links NavigationPersonal finance eCommerce writerRachael Green is a personal finance eCommerce writer specializing in insurance, travel, and credit cards. Before joining Kiplinger in 2025, she wrote blogs and whitepapers for financial advisors and reported on everything from the latest business news and investing trends to the best shopping deals. Her bylines have appeared in Benzinga, CBS News, Travel + Leisure, Bustle, and numerous other publications. A former digital nomad, Rachael lived in Lund, Vienna, and New York before settling down in Atlanta. She’s eager to share her tips for finding the best travel deals and navigating the logistics of managing money while living abroad. When she’s not researching the latest insurance trends or sharing the best credit card reward hacks, Rachael can be found traveling or working in her garden.
Latest-
The December Jobs Report Is Out. Here's What It Means for the Next Fed Meeting
The December jobs report signaled a sluggish labor market, but it's not weak enough for the Fed to cut rates later this month.
-
Trump Signals Plan to Ban Institutional Investors From Buying Single-Family Homes
The president says the move could improve housing affordability. Here’s what the data shows about investor ownership, recent buying trends and what it could mean for homebuyers.
-
Ask the Editor: How to Get Ready for Tax Filing Season
Ask the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on the IRS tax filing season and your 2025 tax return
-
Ask the Editor, January 9: How to Get Ready for Tax Filing Season
Ask the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on the IRS tax filing season and your 2025 tax return
-
4 Simple Money Targets to Aim for in 2026 (And How to Hit Them), From a Financial Planner
While January is the perfect time to strengthen your financial well-being, you're more likely to succeed if you set realistic goals and work with a partner.
-
How to Be a Smart Insurance Shopper: The Price Might Be Right, But the Coverage Might Not Be
Choosing the cheapest policy could cost you when you have a loss. You'll get the best results if you focus on the right coverage with the help of a good agent.
-
Park Pass Shock: $100 Fee Hits International Visitors to U.S. National Parks
Discover how the new $100 fee will impact your experience visiting 11 of America's most popular parks.
-
Is Mechanical Breakdown Insurance Better Than an Extended Car Warranty?
More insurers are starting to offer mechanical breakdown insurance to new car owners. What is it and should you buy it?
-
Why Your Bank Suddenly Lowered Your APY — And What to Do Next
Why banks lower APYs, options you can explore when it happens and whether more rate cuts are on the horizon.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit Anxiety
Tax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
States That Tax Social Security Benefits in 2026
Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?