Congress passed the One Big Beautiful Bill Act in 2025, resulting in many changes to the tax code, some of which directly affect homeowners. This blog highlights only the parts of the law that relate to homeownership, such as property taxes, mortgage interest and home improvement credits. We’re sharing this so that homeowners know what to watch for when filing their taxes and where to find free tax filing help in their state.
Seek Advice from Professionals: While we provide foreclosure relief mortgage lending services, we do not provide tax, legal, financial or accounting advice. Please consult with your own tax advisor, lawyer, financial advisor, accountant or other trusted professional on questions seeking tax, legal, financial or accounting advice. These questions may include, without limitation, questions related to the consequences and deductibility of mortgage interest, property taxes, forgiven debt, financial planning and loan documents. The information provided is accurate as of the date it is written, but tax filers should verify that it remains current as of the date they file their taxes.
Homeowner-Related Tax Changes in the One Big Beautiful Bill
Below are the key parts of the bill that may affect homeowners when filing taxes this year or in the next few years.
State and Local Tax (SALT) Deduction — Property Taxes
The SALT deduction allows homeowners who itemize to deduct certain state and local taxes, including property taxes. Under the new law, the SALT deduction cap increases from $10,000 to $40,000 for tax years 2025–2029, then returns to $10,000 in 2030. Several of the states SUN serves (MA, NY, IL, MD, among others) will benefit from this change.
Mortgage Interest Deduction
The bill makes the current mortgage interest deduction limits permanent. If they itemize their taxes, homeowners can continue to deduct interest on qualifying home purchase loans, up to $750,000 in mortgage debt. Interest on most home equity loans remains excluded unless the funds were used to buy or improve the home.
Home Energy and Improvement Tax Credits
Several tax credits homeowners have used to offset energy upgrades ended after December 31, 2025. This includes:
Improvements made after 2025 will no longer qualify for these credits under current law. Homeowners who made qualifying improvements in 2024 or 2025 should ensure those costs are reported correctly on their taxes to claim the credits.
How These Changes Affect Your Tax Filing
The changes outlined above affect:
- Whether it makes sense to itemize or take the standard deduction
- How much property tax can be deducted
- Whether mortgage-related costs qualify
- Whether home improvement credits are still available
Because some provisions are temporary and others include income thresholds, filing taxes the same way as in past years may lead to missed deductions or credits.
Free Tax Filing Help by State
Below are free tax filing tools and assistance programs available in the states we serve. These resources can help homeowners file accurately, avoid paying for tax preparation and reduce errors.