1,277,180 federal income tax returns deducted mortgage insurance premiums for tax year 2021, the last year the deduction was available before it lapsed, according to IRS Statistics of Income data. They deducted $2.90 billion in total, about $2,274 per return. That was 0.8% of the 159.5 million returns filed.
The deduction is coming back. The 2025 tax law known as the One Big Beautiful Bill Act (section 70108) restored it permanently for tax years beginning after December 31, 2025, so premiums paid in 2026 can be deducted on 2026 returns filed in 2027. It covers private mortgage insurance, FHA mortgage insurance, VA funding fees and USDA guarantee fees on debt used to buy, build or improve a first or second home.
The rules are the same as before. Only people who itemize can claim it, and it phases out by 10% for each $1,000 of adjusted gross income above $100,000 ($50,000 if married filing separately). Above $109,000 of income ($54,500 if married filing separately) none of it is deductible. The limits are not adjusted for inflation.
By state, 2021
Maryland had the highest share of returns claiming the deduction, 2.35%, followed by Rhode Island (1.30%) and Georgia (1.29%). South Dakota had the lowest share, 0.23%.
| State | Returns claiming | Share of all returns | Amount deducted | Average per return |
|---|---|---|---|---|
| Maryland | 71,630 | 2.35% | $163.4M | $2,281 |
| Rhode Island | 7,270 | 1.30% | $17.3M | $2,382 |
| Georgia | 63,600 | 1.29% | $123.2M | $1,938 |
| Oregon | 26,060 | 1.27% | $57.9M | $2,221 |
| Delaware | 6,230 | 1.25% | $13.5M | $2,164 |
| Utah | 18,170 | 1.22% | $44.5M | $2,450 |
| Connecticut | 21,950 | 1.21% | $38.2M | $1,739 |
| Colorado | 34,480 | 1.17% | $111.1M | $3,222 |
| Virginia | 47,410 | 1.15% | $117.1M | $2,471 |
| New Jersey | 52,270 | 1.14% | $111.6M | $2,135 |
| Nevada | 15,760 | 1.01% | $43.8M | $2,782 |
| District of Columbia | 3,450 | 1.00% | $8.0M | $2,321 |
| Minnesota | 27,030 | 0.95% | $43.5M | $1,610 |
| California | 171,820 | 0.91% | $523.6M | $3,047 |
| Illinois | 55,600 | 0.91% | $92.3M | $1,661 |
| Massachusetts | 30,560 | 0.86% | $71.1M | $2,328 |
| Washington | 30,840 | 0.82% | $90.0M | $2,918 |
| Florida | 86,640 | 0.80% | $219.3M | $2,532 |
| Arizona | 26,810 | 0.79% | $70.3M | $2,622 |
| Texas | 105,770 | 0.78% | $218.9M | $2,069 |
| New Hampshire | 5,690 | 0.78% | $11.6M | $2,031 |
| South Carolina | 17,870 | 0.73% | $36.1M | $2,018 |
| Hawaii | 4,930 | 0.71% | $21.2M | $4,293 |
| Montana | 3,880 | 0.71% | $7.5M | $1,932 |
| Idaho | 5,970 | 0.69% | $15.1M | $2,524 |
| Alaska | 2,370 | 0.68% | $6.3M | $2,679 |
| Mississippi | 8,350 | 0.66% | $16.3M | $1,948 |
| North Carolina | 31,210 | 0.64% | $62.2M | $1,992 |
| Pennsylvania | 39,960 | 0.62% | $67.6M | $1,692 |
| Louisiana | 12,530 | 0.62% | $24.3M | $1,937 |
| New York | 60,540 | 0.62% | $142.7M | $2,356 |
| New Mexico | 6,010 | 0.61% | $13.1M | $2,182 |
| Alabama | 12,330 | 0.57% | $23.1M | $1,874 |
| Wisconsin | 16,630 | 0.57% | $24.0M | $1,442 |
| Maine | 3,960 | 0.55% | $7.0M | $1,757 |
| Michigan | 26,310 | 0.54% | $39.5M | $1,502 |
| Kentucky | 10,490 | 0.52% | $16.6M | $1,587 |
| Vermont | 1,690 | 0.50% | $2.6M | $1,554 |
| Missouri | 14,440 | 0.50% | $25.4M | $1,757 |
| Nebraska | 4,520 | 0.48% | $7.0M | $1,550 |
| Oklahoma | 8,240 | 0.48% | $15.7M | $1,902 |
| Ohio | 25,220 | 0.44% | $41.4M | $1,642 |
| Tennessee | 14,040 | 0.43% | $32.8M | $2,335 |
| Iowa | 6,310 | 0.42% | $9.3M | $1,466 |
| Kansas | 5,740 | 0.42% | $9.4M | $1,630 |
| Indiana | 13,610 | 0.42% | $24.9M | $1,831 |
| Arkansas | 5,110 | 0.39% | $9.2M | $1,802 |
| Wyoming | 1,090 | 0.39% | $2.6M | $2,409 |
| North Dakota | 1,180 | 0.32% | $2.5M | $2,118 |
| West Virginia | 2,130 | 0.27% | $4.3M | $2,000 |
| South Dakota | 1,010 | 0.23% | $2.7M | $2,717 |
50 states and D.C., sorted by share of returns. The share and average are our calculations. The U.S. total in the CSV includes returns from Puerto Rico, other territories and overseas addresses.
By income, 2021
Because of the income limit, every claim came from returns with adjusted gross income below $200,000. Returns with income from $50,000 to $100,000 made 68% of the claims.
| Adjusted gross income | Returns claiming | Share of claims | Amount deducted |
|---|---|---|---|
| $1 to $10,000 | 11,890 | 0.9% | $44.1M |
| $10,000 to $25,000 | 43,630 | 3.4% | $126.7M |
| $25,000 to $50,000 | 227,210 | 17.8% | $591.3M |
| $50,000 to $75,000 | 435,850 | 34.1% | $1,004.2M |
| $75,000 to $100,000 | 437,450 | 34.3% | $993.0M |
| $100,000 to $200,000 | 121,160 | 9.5% | $145.3M |
Source
Internal Revenue Service, Statistics of Income, Historic Table 2, individual income tax data by state and size of adjusted gross income, tax year 2021 (file 21in55cmcsv, fields N19550 and A19550, Schedule A line 8d), downloaded October 28, 2026. U.S. government data in the public domain. Law: Public Law 119-21, section 70108; IRS Publication 936 (2026 draft). Our tables are available under CC BY 4.0. Credit "My Credit Guide (mycreditguide.org)".
Steven Reynolds, "Mortgage Insurance Premium Deduction by State," My Credit Guide, October 28, 2026, https://mycreditguide.org/data/pmi-tax-deduction-by-state/.