New Tax Laws for Homeowners: What to Know & Where to File for Free

February 12th, 2026

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.

  • myconneCT: Connecticut's free state tax filing service, developed in partnership with the IRS Free File Alliance, provides an easy-to-use platform for eligible taxpayers to file state taxes electronically.
  • IRS Free File: Connecticut residents who meet income eligibility can file their federal tax returns online for free using software from the IRS Free File program. This allows taxpayers to access professional-grade tax software without incurring filing costs.

Connecticut provides free income tax assistance programs, such as:

  • Connecticut VITA (Volunteer Income Tax Assistance): Free tax help is available to households earning $58,000 or less per year, people with disabilities and those with limited English proficiency. IRS-certified volunteers provide tax return preparation and e-filing assistance at community centers, libraries and other accessible locations.
  • AARP Tax-Aide: Tailored for middle-to-low-income taxpayers, especially those aged 60 and older, AARP’s Tax-Aide program offers expert tax preparation support. Volunteers assist in filing both federal and Connecticut tax returns, with special attention to senior-specific tax concerns.
  • UConn Law School Tax Clinic: This clinic provides pro bono legal assistance to low-income taxpayers dealing with IRS or Connecticut Department of Revenue Services disputes. It offers confidential advice on tax debts, audits and appeals.

  • Delaware Tax Portal: Delaware provides a secure online tax filing platform where residents can electronically file their state tax returns, check refund statuses, make payments and access other tax-related resources.
  • IRS Free File: Delaware residents who meet the income eligibility requirements can file federal tax returns for free using IRS-approved tax preparation software. This option allows taxpayers to maximize their refunds and avoid unnecessary filing fees.

If you need Personal Income Tax filing assistance, the below organizations can help qualifying Delaware taxpayers:

  • Nehemiah Gateway CDC: This nonprofit organization provides free tax preparation services to qualifying individuals and families earning $69,000 or less. IRS-certified volunteers help residents file federal and state tax returns while ensuring they receive important credits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). This service is available in multiple locations across Delaware.
  • Delaware AARP Tax-Aide: This volunteer-run program specializes in assisting taxpayers aged 50 and older with their state and federal tax returns. Services are available at libraries, community centers and senior centers across Delaware.

  • MyTax Illinois: The Illinois Department of Revenue offers MyTax Illinois, a secure online filing system that allows taxpayers to file their state tax returns, check refund statuses, manage payments and access a variety of tax-related resources.
  • IRS Free File: Illinois residents who meet income eligibility requirements can file federal tax returns for free using IRS-approved online tax preparation software. This option provides professional-level assistance without any filing fees.

Illinois also offers free tax preparation resources for eligible residents:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs provide free tax preparation services to households making $69,000 a year or less ($32,000 for individuals), people 60 years of age or older, individuals with disabilities, and taxpayers with limited English-speaking skills. Taxpayers can receive help with income tax return preparation, electronic filing and claiming tax credits, such as the Earned Income Tax Credit (EITC).
  • Illinois AARP Tax-Aide: This volunteer-run program specializes in assisting taxpayers aged 50 and older with their state and federal tax returns. Services are available at libraries, community centers and senior centers across Illinois.
  • Ladder Up Tax Assistance Program (TAP): Serving families earning up to $40,000 per year in the Chicagoland area, Ladder Up provides free tax preparation assistance to ensure that taxpayers receive all available credits and deductions.

  • iFile Maryland: The Comptroller of Maryland provides iFile Maryland, a secure and user-friendly online tax filing system that allows residents to electronically submit their state tax returns at no cost. This platform offers faster processing, refund tracking and secure payment options, helping taxpayers manage their filings with ease.
  • IRS Free File: Eligible Maryland residents can take advantage of IRS Free File, which offers free federal tax filing software from trusted providers. This program ensures that taxpayers who meet the income criteria can prepare and submit their returns without incurring additional costs.

The state of Maryland offers several free income tax assistance programs:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs provide free tax preparation assistance to a combined household income of $69,000 or less, seniors and those with disabilities. Trained volunteers help taxpayers maximize deductions, claim credits and file electronically to ensure accurate and timely refunds.
  • Maryland Comptroller’s Office Free Tax Help: The Comptroller’s Office offers in-person and virtual tax preparation assistance at designated locations across the state. Appointments are available at select branch offices, where trained staff help residents with state tax return preparation and filing.
  • Maryland CASH Campaign: A nonprofit organization dedicated to financial empowerment, the Maryland CASH Campaign offers free tax preparation services to households earning $69,000 or less. This program helps individuals maximize their refunds, claim tax credits and access financial literacy resources to promote long-term financial stability.
  • Maryland AARP Tax-Aide: Designed for seniors aged 50 and older, AARP Tax-Aide provides free tax assistance at libraries, senior centers and community locations. Volunteers specialize in Social Security taxation, pension deductions, and retirement income tax considerations.

  • MassTaxConnect: The Massachusetts Department of Revenue provides MassTaxConnect, a secure online tax system where residents can file their state tax returns electronically, make payments, track refunds and access important tax-related information.
  • IRS Free File: Eligible Massachusetts taxpayers can use IRS Free File, which offers free federal tax filing software from IRS-approved providers. This option ensures that qualifying taxpayers can submit their federal returns without incurring fees.

Massachusetts offers free income tax assistance programs for eligible taxpayers:

  • MassCap: This IRS-certified program provides free tax preparation services for households earning $67,000 or less, seniors and those with disabilities. Trained volunteers assist taxpayers with return preparation, e-filing and claiming deductions and credits.
  • Boston Tax Help Coalition: This nonprofit initiative offers free tax preparation services to low- and moderate-income residents of Boston. The coalition focuses on ensuring taxpayers receive all eligible tax credits, such as the Earned Income Tax Credit (EITC), and provides financial education to help residents manage their finances effectively.
  • Massachusetts AARP Tax-Aide: Tailored specifically for seniors and retirees, AARP Tax-Aide provides free tax assistance at various community locations across Massachusetts. Volunteers assist with filing both state and federal tax returns, ensuring that seniors receive the retirement-related tax benefits they’re entitled to.

  • E-file Michigan: The Michigan Department of Treasury offers Free E-file Michigan, a secure and user-friendly online system that allows residents to file state tax returns electronically.
  • IRS Free File: Michigan residents who meet income eligibility requirements can file their federal tax returns for free using IRS-approved tax preparation software. This program helps taxpayers maximize refunds and avoid unnecessary filing fees.

If you need Personal Income Tax filing assistance, the below organization can help qualifying Michigan taxpayers:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs provide free tax preparation assistance for households making $67,000 or less, seniors, and people with disabilities. Trained volunteers assist taxpayers with return preparation, electronic filing and claiming tax credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).
  • Michigan 2-1-1 Tax Assistance: Michigan’s 2-1-1 helpline connects residents with local free tax preparation services, including VITA sites and financial counseling programs. This resource ensures that taxpayers receive the help they need with filing federal and state returns, maximizing tax benefits, and improving financial literacy.
  • Michigan AARP Tax-Aide: This nationwide program offers free tax preparation services tailored to seniors aged 50 and older. Volunteers help retirees navigate pension income taxation, Social Security tax considerations, and deductions unique to older taxpayers.

  • NJ Online Filing & MeF e-File: The New Jersey Division of Taxation provides two secure electronic filing options: NJ Online Filing for state returns and the Federal-State Modernized e-File (MeF) program. These platforms allow residents to submit tax returns electronically, track refunds and make tax payments efficiently.
  • IRS Free File: New Jersey residents who meet income eligibility requirements can access free federal tax filing software through the IRS Free File program. This ensures qualifying taxpayers can file federal returns without incurring extra costs.

For New Jersey residents seeking tax preparation and assistance, the state offers several programs for eligible taxpayers:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs offer free tax preparation services for households earning $75,000 or less, seniors, and those with disabilities. Services include electronic filing, tax credit assistance, and personalized tax guidance.
  • New Jersey AARP Tax-Aide: Designed to assist seniors, AARP Tax-Aide provides free, volunteer-led tax preparation services at libraries, senior centers and community hubs across New Jersey. Volunteers specialize in retirement-related tax matters, Social Security taxation, and pension deductions.
  • New Jersey 211 Tax Assistance: The NJ 211 helpline connects residents with local tax assistance programs, including VITA sites, financial literacy workshops and state-specific tax relief resources. This service ensures that taxpayers have easy access to tax preparation support.

  • OH|TAX eServices: The Ohio Department of Taxation provides OH|TAX eServices, a secure online filing system that allows residents to file state tax returns electronically, check refund statuses, and manage tax payments.
  • IRS Free File: Ohio residents who meet income eligibility requirements can file their federal tax returns for free using IRS-approved tax preparation software. This program enables taxpayers to access professional-grade tax software without any filing costs.

Ohio offers free income tax assistance programs for eligible taxpayers:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs provide free tax preparation services for households earning $60,000 or less, seniors, and those with disabilities. Volunteers help taxpayers claim deductions, maximize refunds and electronically file state and federal returns.
  • 614 File Free (Central Ohio): A local tax assistance program that helps households earning less than $70,000 prepare and file their taxes for free. Volunteers assist with tax credit eligibility, refund maximization and accurate e-filing.
  • Ohio AARP Tax-Aide: Specifically designed for seniors aged 50 and older, this volunteer-led program provides free tax assistance, particularly for Social Security recipients, retirees and pensioners. Services are available at libraries and community centers statewide.

  • PA e-File: The Pennsylvania Department of Revenue offers PA e-File, a secure and user-friendly online system for residents to file state tax returns electronically, track refunds and manage payments.
  • IRS Free File: Eligible Pennsylvania residents can utilize IRS Free File, which provides free access to federal tax filing software from IRS-approved providers. This service allows taxpayers to maximize deductions and credits without incurring additional fees.

If you need Personal Income Tax filing assistance, the below organizations can help qualifying Pennsylvania taxpayers:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs provide free tax preparation assistance to households earning $70,000 or less, seniors and those with disabilities. Volunteers help with return preparation, electronic filing, and claiming credits, such as the Earned Income Tax Credit (EITC).
  • Just Harvest Free Tax Prep: This Pittsburgh-based nonprofit offers free tax preparation services to households earning $83,000 or less. The program ensures taxpayers receive all available credits and deductions while avoiding costly tax preparation fees.
  • PathWays PA Tax Assistance: PathWays PA provides free tax preparation services for qualifying Pennsylvania residents earning $56,000 or less, ensuring they maximize refunds, claim eligible tax credits and file state and federal returns accurately.
  • Pennsylvania AARP Tax-Aide: Designed for seniors aged 50 and older, AARP Tax-Aide provides free tax assistance at libraries, senior centers and community locations. Volunteers specialize in Social Security taxation, pension deductions and retirement income tax considerations.

  • Rhode Island Taxpayer Portal: The Rhode Island Division of Taxation provides the Rhode Island Taxpayer Portal, a secure online system for residents to file state tax returns electronically, track refunds and manage tax payments.
  • IRS Free File: Rhode Island residents who meet income eligibility requirements can file federal tax returns for free using IRS-approved tax preparation software. This program helps taxpayers maximize refunds and avoid unnecessary filing fees.

Rhode Island also offers free tax preparation resources for eligible residents:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs provide free tax preparation services for households that earned $69,000 or less, seniors and those with disabilities. Volunteers assist taxpayers with return preparation, electronic filing, and claiming credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).
  • The Rhode Island Free File Alliance: A coalition of nonprofit organizations and tax software providers offering free state and federal tax preparation assistance to eligible taxpayers. This program ensures that qualifying individuals receive full tax benefits while avoiding costly tax preparation fees.
  • Rhode Island AARP Tax-Aide: This volunteer-led program provides free tax assistance to seniors aged 50 and older, helping them navigate Social Security taxation, pension deductions, and other retirement-related tax considerations. Services are available at libraries, senior centers and community centers statewide.

  • WisTax: The Wisconsin Department of Revenue offers WisTax, a secure online system that allows taxpayers to file state tax returns electronically, track refunds and make tax payments.
  • IRS Free File: Wisconsin residents who meet income eligibility requirements can access IRS-approved tax preparation software to file their federal tax returns for free. This program ensures taxpayers claim all applicable deductions and credits without incurring filing fees.

Wisconsin offers free income tax assistance programs for eligible taxpayers:

  • VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly): These IRS-certified programs provide free tax preparation assistance for low-income individuals, seniors and those with disabilities. Trained volunteers help taxpayers prepare and file returns electronically, ensuring accuracy and maximizing available tax credits such as the Earned Income Tax Credit (EITC).
  • Wisconsin AARP Tax-Aide: This volunteer-run program provides free tax assistance for seniors aged 50 and older, helping them navigate pension income taxation, Social Security tax implications, and retirement deductions. Services are available at community centers, libraries and senior centers throughout Wisconsin.

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