Student Loan Interest Deduction by State

6,770,180 federal tax returns claimed the student loan interest deduction for tax year 2023, deducting $5.20 billion, an average of $769 per return. That was up from 3,915,220 returns in 2022 but well below the 12,543,040 returns that deducted $13.89 billion in 2019, before payments and interest on most federal student loans were paused.

The deduction was most common in North Dakota, where 7.4% of returns claimed it, followed by South Dakota (6.9%) and Minnesota (6.8%). It was least common in California (2.8%), Nevada (3.1%) and Mississippi (3.1%). The average amount deducted was highest in Pennsylvania ($921) and lowest in Utah ($592).

Why 2022 and 2023 were low

From March 2020 through August 2023, the interest rate on most federal student loans was set to 0% and payments were paused, so most borrowers paid little or no interest to deduct. Interest resumed on September 1, 2023, and payments were due starting in October 2023, so tax year 2023 reflects only a few months of interest on those loans. Private student loans were not covered by the pause.

How the deduction works

Borrowers can deduct up to $2,500 a year of interest paid on qualified student loans, whether or not they itemize. For tax year 2023 the deduction phased out for single filers with modified adjusted gross income between $75,000 and $90,000, and for joint filers between $155,000 and $185,000. Those limits are adjusted for inflation each year. The share of returns claiming it in a state depends on how many residents have student loans, how much interest they paid, and how many have incomes under the limits.

Returns claiming the deduction, by state

Download the table (CSV) (CC BY 4.0 for our table) · Click a heading to sort

StateReturns claiming, 2023Share of returns, 2023Average deduction, 2023Total deducted, 2023Returns claiming, 2019Share of returns, 2019
North Dakota27,3207.4%$760$20.8M42,95011.5%
South Dakota30,7206.9%$770$23.6M50,05011.5%
Minnesota197,0806.8%$751$148.0M337,08011.9%
Vermont22,6306.8%$821$18.6M39,29011.8%
New Hampshire48,1606.6%$881$42.4M81,28011.2%
Iowa93,9006.3%$709$66.6M170,21011.4%
Maine44,6506.3%$796$35.5M74,31011.0%
Wisconsin179,8606.1%$702$126.3M296,30010.2%
Pennsylvania380,8206.0%$921$350.9M647,22010.2%
Nebraska53,3705.6%$688$36.7M96,58010.4%
Massachusetts195,2605.4%$865$168.9M338,6709.7%
Rhode Island30,6005.4%$827$25.3M51,8109.4%
District of Columbia17,8905.1%$770$13.8M36,29010.3%
Connecticut92,5705.1%$857$79.4M160,0508.9%
Colorado156,2805.1%$702$109.8M290,48010.1%
Ohio285,9505.0%$818$234.0M526,9509.2%
Montana27,7105.0%$650$18.0M51,3509.7%
Kansas68,2705.0%$681$46.5M127,8709.3%
Indiana160,5905.0%$759$121.8M292,4809.1%
Oregon101,9604.9%$659$67.2M197,9509.7%
Michigan239,0504.9%$779$186.2M428,8508.8%
Missouri135,1704.7%$731$98.8M257,0609.0%
Idaho41,3404.7%$647$26.8M76,8409.3%
Illinois281,7804.6%$795$224.1M518,9208.4%
New Jersey211,7604.5%$918$194.3M360,1008.0%
Virginia184,9404.4%$806$149.1M332,0708.2%
Kentucky85,8704.3%$713$61.2M163,6908.3%
Delaware21,8604.3%$847$18.5M36,8207.6%
South Carolina107,0404.3%$822$88.0M184,2007.8%
North Carolina210,4104.3%$771$162.3M366,1407.6%
Utah64,9504.2%$592$38.4M116,2408.1%
Tennessee135,7104.2%$742$100.7M242,7907.7%
New York403,9104.1%$825$333.1M773,7507.9%
Arizona135,2804.0%$690$93.3M261,3607.9%
Wyoming11,2004.0%$670$7.5M20,6107.3%
West Virginia30,6803.9%$710$21.8M58,7107.5%
Washington148,8303.9%$657$97.7M293,9507.8%
Alaska13,4403.9%$702$9.4M26,0707.3%
Georgia188,2403.9%$796$149.9M365,4807.7%
Alabama80,3903.8%$786$63.2M142,9406.7%
Maryland116,0103.7%$814$94.5M227,8507.5%
Oklahoma63,5303.7%$687$43.6M122,9107.2%
Arkansas48,0003.7%$702$33.7M90,2507.0%
Texas501,5003.7%$725$363.4M956,5107.2%
Louisiana62,1703.2%$726$45.1M130,2706.4%
Hawaii22,3603.2%$702$15.7M42,8806.0%
New Mexico31,1403.2%$649$20.2M64,1806.7%
Florida355,5903.2%$761$270.8M684,3106.4%
Mississippi38,5903.1%$794$30.6M75,4605.9%
Nevada48,3603.1%$674$32.6M94,1806.1%
California517,8102.8%$701$362.9M1,080,6805.8%
United States6,770,1804.2%$769$5.20B12,543,0408.0%

50 states and D.C. Shares and averages are our calculations from IRS counts and amounts. The CSV also includes tax year 2022. IRS state data are based on the address on the return.

What you can do

  • Look for Form 1098-E from your loan servicer. Servicers send it if you paid $600 or more in interest; you can still deduct smaller amounts.
  • The deduction is taken on Schedule 1, so you can claim it even if you take the standard deduction.
  • Interest paid by someone else on your behalf may still be deductible by you in some cases. IRS Publication 970 explains the rules.

Source

Internal Revenue Service, Statistics of Income, Historic Table 2 state data files for tax years 2023, 2022 and 2019 (23in55cmcsv, 22in55cmcsv, 19in55cmcsv), all income levels, fields N1 (number of returns), N03210 and A03210 (student loan interest deduction, number and amount in thousands of dollars), downloaded October 21, 2026. Deduction limits: IRS Publication 970 (2023). U.S. government data in the public domain. Our table is available under CC BY 4.0. Credit "My Credit Guide (mycreditguide.org)".

Steven Reynolds, "Student Loan Interest Deduction by State," My Credit Guide, October 21, 2026, https://mycreditguide.org/data/student-loan-interest-deduction-by-state/.

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