The tax law places a fixed dollar limit on the amount of home mortgage interest a taxpayer may deduct in a particular year.

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The tax law does not place a fixed dollar limit on the amount of home mortgage interest a taxpayer may deduct. Instead, it limits the deduction to the interest paid on up to $750,000 ($375,000 if married filing separately) of mortgage debt incurred after December 15, 2017, to buy, build, or substantially improve a primary or secondary home. The limit was $1 million ($500,000 if married filing separately) for loans taken out before December 16, 2017.

The Tax Law Places a Fixed Dollar Limit on the Amount