2026 Tax Changes: Key Updates for El Paso Homeowners Explained

The recent updates from the One Big Beautiful Bill Act have significantly altered the tax landscape for homeowners in 2026. Key changes include an increase in the state and local tax (SALT) deduction cap from $10,000 to $40,000, which will rise to $40,400 in 2026 and continue to increase until 2029. Additionally, private mortgage insurance (PMI) premiums will be tax-deductible again for eligible homeowners, while the mortgage interest deduction limit remains permanently set at $750,000. However, homeowners should be aware that energy credits have expired, and these changes may not benefit all, particularly those who take the standard deduction. Homeowners are encouraged to evaluate their individual tax situations to understand the implications of these changes.

Key Details: • SALT deduction increases to $40,000 in 2025 and $40,400 in 2026. • PMI premiums are deductible again for those with adjusted gross income below $100,000. • Mortgage interest deduction limit of $750,000 is now permanent. • Residential energy credits expired after 2025; no new credits available. • Homeowners should assess their tax situations individually.