H.R. 2760: Middle Class Mortgage Insurance Premium Act of 2025

This bill, titled the Middle Class Mortgage Insurance Premium Act of 2025, aims to amend the Internal Revenue Code of 1986 concerning mortgage insurance premium deductions. Here’s a breakdown of the key provisions:

Increase in Income Cap

The bill proposes to increase the income cap at which taxpayers can deduct their mortgage insurance premiums. Specifically:

• The current cap of $100,000 for individuals and $50,000 for married couples filing separately will be raised to $200,000 for individuals and $100,000 for married couples filing separately.

Permanence of Deduction

In addition to increasing the income cap, the bill seeks to make the mortgage insurance premium deduction a permanent feature of the tax code. This means that taxpayers who qualify will be able to take advantage of this deduction without the risk of it expiring in the future.

Effective Date

The changes proposed by this bill will take effect for taxable years beginning after December 31, 2025. This means that any applicable tax year starting on or after January 1, 2026, will be subject to the new provisions laid out in the bill.

Impact on Taxpayers

If enacted, this bill is likely to benefit middle-class homeowners, particularly those who earn between the current and the new income caps. By raising the cap, more taxpayers would qualify for the deduction on their mortgage insurance premiums, thereby potentially reducing their taxable income and overall tax burden.

Relevant Companies

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