Repayment plans / Interest deduction
Checked against the tax code, IRS Rev. Proc. 2025-32 and Publication 970 on Oct 17, 2026
Student loan interest deduction: what you can deduct for 2026
Up to $2,500 of the interest you paid comes off your income, even if you take the standard deduction. Enter two numbers to see your amount and the phase-out math.
Estimate, not tax advice. The steps follow IRS Publication 970, Worksheet 4-1. How the deduction works · Sources
The rules in short
| 2025 returns | 2026 returns | |
|---|---|---|
| Most you can deduct | $2,500 | $2,500 |
| Phase-out: single, head of household, surviving spouse | $85,000–$100,000 | $85,000–$100,000 |
| Phase-out: married filing jointly | $170,000–$200,000 | $175,000–$205,000 |
| Married filing separately | Not allowed | Not allowed |
- You must be legally obligated to pay the loan, and the loan must have been taken out only for qualified education costs for you, your spouse or your dependent at the time.
- Required and extra (voluntary) interest payments both count. So does capitalized interest, in years you make payments.
- Interest someone else pays for you counts as paid by you, unless it was your employer under an educational assistance program.
- It is an adjustment to income, so you don’t need to itemize.
2026 standard deduction used for the tax estimate: $16,100 single, $24,150 head of household, $32,200 joint. Sources: 26 U.S.C. 221; IRS Rev. Proc. 2025-32 §§4.01, 4.14, 4.29; IRS Publication 970 (2025), chapter 4. Last verified Oct 17, 2026.