Want to Pay Less in Taxes? Here’s How Owning a Home Can Help
When people talk about homeownership, they usually focus on the big stuff: building equity, locking in a monthly payment, getting out of the rent cycle.
But there’s another benefit that rarely gets enough attention—tax advantages. And while it’s not the reason most people buy a home, it’s absolutely something you should understand if you want to make the most of your investment.
Let’s walk through the main ways owning a home can help you at tax time. We’ll keep it real, keep it simple, and let you know where a quick conversation with a tax pro might save you even more.
Best for: Homeowners with new loans or larger balances
One of the most common tax benefits of homeownership is the ability to deduct the interest you pay on your mortgage. This can be especially helpful in the early years of your loan, when interest makes up a bigger chunk of your monthly payment.
To use it, you’ll need to itemize your deductions (instead of taking the standard deduction), and there are some limits based on how much you’ve borrowed—but for many homeowners, this can mean real savings every year.
Best for: Homeowners who itemize
Nobody loves paying property taxes—but if you itemize, you may be able to deduct some or all of what you paid. The current cap is $10,000 for state and local taxes combined, which includes property taxes.
It’s not a windfall, but it’s money back in your pocket. Just be sure to keep good records, especially if your taxes are paid through your mortgage escrow account.
Best for: Self-employed individuals or business owners who work from home
Working from home isn’t just a lifestyle perk—it might also save you on taxes. If you’re self-employed and use part of your home regularly and exclusively for work, you may be able to deduct a portion of your expenses.
There are two ways to calculate it: a simplified square footage method or a more detailed version that factors in your utilities, insurance, and more. A quick chat with your accountant can help you figure out which makes sense for you.
(If you're a W-2 employee working remotely, this one won’t apply under current federal tax law—but that could change in the future.)
Best for: Homeowners making eco-friendly improvements
If you've made energy-efficient upgrades—like solar panels, energy-saving windows, or high-efficiency HVAC systems—you could qualify for a federal tax credit.
This is different from a deduction. It’s a credit, meaning it lowers the actual amount of tax you owe—dollar for dollar. That’s powerful. And it applies to both existing homes and new builds, with some credits running through 2032.
It’s worth checking with your installer or tax advisor to see what qualifies and how to claim it.
Best for: Homeowners who’ve built equity and plan to sell their primary residence
This is one of the biggest financial advantages homeowners have—and it often catches people by surprise.
When you sell your home, you may be able to exclude up to $250,000 of profit from your taxes (or $500,000 if you’re married filing jointly), as long as the home was your primary residence and you lived in it for at least two of the last five years.
In a market like Denver, where values have jumped over the last few years, this can mean huge tax savings when it’s time to move on or move up.
Look—taxes aren’t the most exciting part of owning a home. But they are part of the equation. And when you understand how these deductions and credits work, it can make a real difference in your annual return—and your long-term financial strategy.
Not all of these will apply to every homeowner, and some require that you itemize your deductions, but even knowing which questions to ask your tax advisor puts you ahead of the game.
Whether you’re getting ready to buy, already own, or thinking about selling—we can help you understand how the tax side of homeownership fits into your bigger picture.
→ Schedule your free strategy call today.
A clear breakdown of what a home equity loan is, how it works, when it makes sense, and the key pros and cons to weigh before borrowing against your home.
Your credit score doesn’t have to be a mystery — or a roadblock. In this post, we break down exactly how credit works, what impacts your score the most, and what steps you can take today to boost it. Whether you’re getting ready to buy a home or just want more financial freedom, this guide gives you the clarity and confidence to take control.
Choosing between a 15-year or 30-year mortgage? This post breaks down the pros and cons of each option—payment differences, interest savings, equity timelines—and helps buyers decide which term fits their goals, lifestyle, and budget.
VA loans are one of the most powerful benefits available to veterans and service members—but most people don’t realize just how much they offer. In this post, we break down the top advantages of VA loans, from zero down payment to flexible credit guidelines, and how to put them to work for your next home purchase or refinance.
Moving before the school year starts? This guide breaks down what families need to know when buying a home on a tight timeline—including how to research school zones, plan backward from your move-in date, and avoid common missteps during the transition.
Learn the real costs of buying a home beyond the down payment. From closing costs to move-in expenses — here's how to budget like a pro.
With high home prices and rising rates, more buyers are teaming up to afford homeownership—especially in pricey markets like Colorado. This blog breaks down the pros, pitfalls, and property types perfect for co-buying with friends or family. From duplexes to ADUs, we’ll walk you through how to do it right—and what to avoid.
Confused by escrow? You’re not alone. This blog breaks down what escrow is, how it works during the homebuying process, and why it’s a key safeguard for your money and peace of mind—before and after closing.
Still think you need 20% down or perfect credit to buy a home? Think again. This post busts the most common myths that keep smart buyers on the sidelines—and shares what’s actually possible in today’s market. If you’re closer to buying than you think, this is the clarity you’ve been waiting for.
Sick of rising rent, slow repairs, or living on someone else’s terms? This post breaks down what renters won’t miss when they finally make the move to homeownership—and the freedom, stability, and financial benefits that come with it. If you’re wondering whether it’s time to buy, start here.
.png)
If you’re a veteran, active-duty service member, or surviving spouse, you may qualify for one of the best loan options available: the VA loan. This post breaks down the benefits, busts common myths, and explains how to make the most of your military-earned buying power.
Before you fall in love with a house, get your financing in order. In this article, we explain why pre-approval should always be your first move as a buyer—and how it gives you clarity, credibility, and serious leverage in today’s market.
Wondering what really goes into your mortgage payment? From principal and interest to insurance, taxes, and beyond, this detailed breakdown explains every component so you can plan, budget, and buy smarter—no surprises.
Buying your first home is exciting—but also overwhelming if you don’t know what to expect. This guide breaks down the real deal behind the process, from pre-approval to closing, with honest advice and practical tips to help first-time buyers avoid common pitfalls and feel confident every step of the way.
